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Realogy CEO Richard Smith on the outlook for the housing market and the impact of the government’s homebuyer programs.
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New data today on America's floundering housing market sales of existing homes.
Down almost 4% in -- that according to the national association of real -- the lowest level in six months but better than the drop economists had been expecting.
My next guest says these numbers may not be as bad as they appear joining me now Richard Smith CEO trilogy.
The parent of amongst others such -- one Coldwell Banker who's.
Bankers Sotheby's.
And I'm a whole bunch more.
Good to have you would expect revenue -- let's let's start with this good news which is that the bad news wasn't as bad as some economists had thought is it truly good -- Well listen weren't in the midst of -- housing correction on a year to date basis units are down about a half percent price is down about 3%.
Pretty much in keeping one with what we have predicted and others have predicted.
Remember we're competing against the housing tax credit last year it's impossible to compete against that credit now.
With the exception of this if we -- a stronger economy we perhaps could that we can we do not so we can.
And and more noise that we're going to see some help.
For from home buyers are -- -- excited about that.
The Communists is version -- I think all look prior versions of failed this too will fail I think it's probably well intentioned but it's very bad strategy.
And what.
Is this strategy is that as best you can discern it from this administration from this congress.
In further.
Well when you are you and I have talked and you made the point over and over.
That jobs are the foundation for driving the housing market one can what this strategy do you see on the part of this administration.
-- a lack of judgment I think.
I'm part I think it's also a strong indication that they lack confidence the private sector mean housing market will turn around if you leave it up to the the industry got jealous it is a government they have confidence and -- well certainly -- -- -- after seven failures yet again on another site I think this is.
Yet again another example.
Good big government is passed.
We know how to fix the problem and let us demonstrated mean there are there other regulations coming down the path that you well know that are just as owners.
Well Dodd-Frank.
That legislation and I know that you've been working with congress with the administration trying to.
To get some.
Some sort of education inculcated into the into the good folks down there what success how much time -- you spending down there what's your sense of.
About every other week we find -- necessary to spend time either there or on the phone on a daily basis trying to deal Dodd-Frank.
In their wisdom -- have decided the Dodd-Frank needs to fix the mortgage finance industry and they need to do it in such a manner that it makes sort of levels the playing field if you will for.
All borrowers the simple fact is this is a very very difficult piece legislation.
It has to be very difficult to overcome.
What this is going to accomplish in a very short period of time all being bad for --
