Is the Housing Market Really as Strong as It Seems?
On paper, the housing market has never looked more solid. Single-family homes across the country are in high demand, with home values growing, on average for the nation, nearly 20% year over year. This record growth is thanks to a number of unique factors, including today's low-interest-rate environment and insufficient housing supply.
According to Freddie Mac, around 3.8 million housing units are needed to meet demand due to years of underdevelopment following the Great Recession. But one expert believes the housing market isn't nearly as strong as it seems and that we aren't in a housing shortage, but rather in a position of overproduction potentially putting the market we know at risk for a correction.
The contrarian is real estate analyst and expert Ivy Zelman, CEO of Zelman Associates. Ivy is commonly praised for her years of experience and accurate predictions within the real estate market, including pinning the peak of housing prices back in 2005, prior to the Great Recession. And right now, Ivy thinks the housing market is sitting on a bed of lies.
Source Fool.com
