Interest rates might not be dragging down activity in the housing sector anytime soon, Citigroup Global Head of Real Estate Thomas Flexner said Tuesday.
"I happen to think that people are coming away from this data today being much more invested in a strong housing recovery. I'm not sure if all the data support it yet. It's very early on," he said. "Remember, we've had a supply-constrained market for the last few years."
Stocks closed higher, erasing most of their losses from the previous day's selloff, as better-than-expected economic reports eased worries over a credit crunch in China.
On CNBC's "Fast Money," Flexner noted a lack of new construction in real terms and the creation of a new institutional investor class that has been buying "tens of thousands of new homes" to turn into rentals.
That made the outlook positive for the real estate market, he added.
"I think this is great news," Flexner said. "I mean, it really does show an inflection point, but it's still fragile."
Fears that rising interest rates would provide a drag on the sector might be premature, he added.
"I don't know that there's a precise tipping point anymore because it's also a function of what the price point on the house is," he said. "I think that we are quite a bit away from having the interest rate itself become a negative for the housing market."
Flexner noted that the specter of rising rates could spur some activity, citing its effect on consumer psychology, but didn't flag it as a major concern.
"It may be accelerating some demand that should actually occur further out, but I still think you've got to be very careful in investing too much in this data," he said.