Hovnanian: Housing Market is About to Get Moving
According to experts such as Ara Hovnaian and Ivy Zelman, if you're in the market for a house you'd better get moving.
During interviews on CNBC, both pros suggested that the housing market has so many tailwinds the renaissance is probably unstoppable.
"I think we're in the first or second inning in what's going to be a significant recovery in the market," Hovnanian, CEO of Hovnanian Enterprise, said on CNBC's "Futures Now."
"I'm probably the most bullish fundamentally I've ever been," added Zellman, CEO of Zelman & Associates.
Not only are houses more affordable and mortgage rates at historic lows, but after the broadcast Hovnanian told CNBC another catalyst appears to be quite bullish.
The resurgence in the housing market is broad based, and demand is strong across the nation.
"As homebuilders we can't build enough. Orlando is down to (a) three month supply. Northern Virginia is down to 2.5 months. Normally it's closer to six months. We're at half that level," he said.
Demand is also strong across most demographics.
"First time home buyers have lagged," Hovnanian acknowledged, but almost every other demographic is buying with gusto.
On top of that robust demand, Hovnanian said, supply is challenged—again a bullish sign.
"We've been under producing housing for a long time now." Hovnanian said. According to his research "the projected number of new dwellings that will need to be built is 1.8 million. We're nowhere near that."
If these experts are right, the housing market looks as if it's ready to move.
But even if prices do increase, Hovnanian doesn't seem worried that buying will subside.
"If the Fed takes their foot off the gas and rates creep higher, that will be OK," he said. "Should mortgage rates climb back to 5 percent, even 5.5 percent, homes are still very affordable."