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Better Homes & Gardens Real Estate CEO Sherry Chris gives her outlook for the housing market.
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Action 0:4 PM eastern time today for.
Or existing home sales rebounding slightly in October up one point 4% but overall.
These -- still remain at depressed levels our next guest though says there is still hope for housing in the US which is also looking abroad Sherry -- Better Homes and Gardens real estate CEO president joins me now and -- should say about our -- and better homes and -- of the magazine a Realogy has taken over the brand name so ability is taking over the brand name for -- interesting Atlantic.
Let's talk about you know I was looking at -- this October -- cells existing home sales going up slightly.
But still September was down substantially and the annualized rates are still fairly.
At depressed levels how long does this last four.
Well in it was difficult for us to predict of course and it really is tied to unemployment.
And consumer confidence and so when we look at what inning -- predicting 42011.
And there -- saying five million homes sales.
Fannie may is saying four point nine.
With those two that close that is somewhat encouraging and they've stuck to their number throughout the year -- off.
Or point 97 there you go all right and adults carry but at the same time six million is a healthy market not four point 97 million and a lot of the realtors reported in -- in today's report.
That these deals are getting canceled last with a third of deals are getting canceled the last minute is that the banks.
Is at a nervous consumer what do you -- him.
It's a combination of things and I found that number interesting as well in fact I checked.
Our own Realogy records that show that -- for us it's much lower than that it's in the high teens.
However when we think about.
What's happening out there with the canceled sales.
Properties -- to praise saying.
Buyers aren't qualifying for the mortgages in the end there's a lot of stuff around that and we need to -- out you know we need to correct that.
Aren't so you know there's also this shadow inventory that people are really spooked about right.
What number you say because we saw -- scary figure that that can rise to it double what we're seeing now and the next that bite to it by January.
There are a lot of numbers being thrown -- this shadow in the -- is foreclosed properties -- foreclosed properties that haven't come on the market yet there there are.
Many many numbers being thrown out there and so.
That what number do you like for the -- to -- do you think as I I I.
You can't quote a number because I don't you know I don't know on it's something that we don't track ourselves and we read.
About it obviously.
And look at what's happening that.
That's number that I can't quotes but -- is something that we're concerned about every day I have to high value because if you right now we're looking at.
You know the -- Eight months' worth of inventory today sitting on the market which is better than before.
If there is a lot of shadow inventory coming on the market in the months to come in that number's an increase significantly and that will not be -- -- -- You know another thing that is not a good thing is -- if you look at the reasons behind a lot of these deals and a close is because it's qualifications.
And -- and it's also the fact that the banks are you know it's more money down plus the big banks -- are and you know coming up with some small things in the appraisals the appraisers are still.
Being criticized for this today.
About the fact that they are low borrowing basically property price and another being ready thing -- problem is here.
-- the appraisers are very cautious and in fact one of my colleagues say.
Not just not trying to buy her first home with her husband and and young baby and is having a problem at that -- she thought everything was fine in the appraisal came in for 151000 dollars less now for some people that's not a lot of money.
But for first time home buyer it is -- so.
They're now going back into re looking at the appraisal -- going back to the seller.
In the early days and I've been in the industry for thirty years in the early days it was very easy to buy -- home and you went out you -- -- found some properties that you -- you putting offering -- check some very very comp.
Feeling good okay -- that and I donates one what do I have that has changes something I think -- releasing -- kind of moving indicated you're looking at the Canadian market may not have.
The same housing problems that we've had in this country.
No -- in your opinion -- Well and I I can't answer that because I am Canadian down by by birth and it's very much shot conservative countries they're getting -- system is different gun.
Recourse loans and other words there's a conservative and our country would -- its non recourse to candy can the bank can have access to your -- -- K.
And Canada it is recourse -- access other assets in.
Canada I don't think this has the same stimulative measures out of the government to get whose house and we -- Gerry Ford in this -- You know try to do housing stimulus I mean.
Do you think that works here in the United States well or housing markets and -- What I found in my experience there when nine when I worked there is that it's.
It often backfires and you know it's good for a period of time it helps and then it backfires and you know some of the stimulus that it's taken place there is.
I -- of virtually.
Around 2% down and and things like that.
If there's a drop in the market then of course people end up under water and that and that's the problem which is still another major problem and that guy this is a shadow inventory market that we're talking an analyst Terry thank you very much it's -- -- -- to -- -- you.
