Have you ever heard of Bill McBride? He was one of the first people to warn us about homes becoming over-valued during the bubble. So what is this well-known finance and economics blogger saying about today's market? He agrees with Ivy Zelman, who says "we're in Nirvana for housing"!
So what makes today's market Nirvana?
The largest obstacle the market has been facing is inventory. There are a lot of buyers out there, and not enough homes for them to buy. Because distressed properties have been so affordable, builders have been unable to produce competitively priced homes. In fact the ratio of existing-homes sold to new-homes sold hit a historical low in 2010. The ratio was 17 existing homes sold for every 1 new-home sold.
While builders have…