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Real Estate Recovery Has ‘Started,’ Pro Says

Thursday, 6 Sep 2012 | 1:16 PM ET

Certain sectors of real estate are nearing pre-bust, 2007 highs, Bill Mack, AREA Property founder and chairman, told CNBC on Thursday.

“I think the recovery has started, we bounced off the bottom. But the recovery has been tepid, it’s been spotty and it’s been uneven,” he said on “Fast Money.”

Home Builders Hit Multi-Year Highs
Lennar, DR Horton and PulteGroup are all hitting multi-year highs. And Bill Mack, AREA Property, discusses opportunities in real estate.

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“Some of the well-rented and better properties are selling at levels that are approaching the 2007 levels,” he said. “That is because some people are very hungry for yield, they’re looking for yield and they’re looking for inflation protection. And in this very low-yielding environment, they think real estate is a good investment.”

(Read More: Cooperman: Market in ‘Zone of Fair Valuation’)

Multifamily housing, especially, has strong upside potential, Mack said.

“That, I believe, has legs,” he added.

Stronger employment will drive growth in office, retail and industrial properties.

“Driving the job market will be the need for space,” he said.

Trader disclosure: On Sept. 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLUU; Jon Najarian is long STSI; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in TGT; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in MSFT; Jon Najarian is long call spreads in QCOM; Jon Najarian is long call spreads in KMI; Enis Tanner is long BAC PUTS; Enis Tanner is long GS; Enis Tanner is long XLU PUTS; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long AIG.

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