Land Prices to Affect the Housing Market?
Is now a good time to buy land?
- Duration 4:05
- Date Nov 30, 2011
Is now a good time to buy land?
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Is it is -- getting.
Easy getting better I mean today we just actually heard that refinance mortgage applications were down because people are not refinancing anymore is it because they're done.
Well people who who hasn't refinance.
Comes -- head after the come down there.
Those who can qualify have done and -- ready.
Those who were on that -- of qualifying goes the ones that are struggling Obama throughout his refi plan a couple months ago and said I'm gonna help everybody.
It's not going to is gonna help a very small amount of people and we're trying to get those people refinance but all in all there are many millions of Americans out there right now who can't take advantage of the great mortgage rates.
To me and that is that that's -- -- -- hold us back forever.
You know I understand -- -- want to keep going I understand companies are lean and mean but if housing is in the toilet I can't imagine how we can recover.
Well housing has to be recovered for the overall economy to be great I mean that -- hands down I believe housing rules everything else.
For that happening confidence people need to feel secure in their jobs need to feel secure of the savings accounts they have -- the banks may need to be.
Able to know that they're going to have the payment ready for the next mortgage or the next rent or whatever they might be doing for their housing.
That's going to take some time.
Once that happens then you're gonna start seeing some stability in the housing where it's not gonna be complete in a way buyer's market so so -- is -- for only use it.
For more -- -- right now it's best time to body I mean here potentially in the market and work.
How the need for housing right now you're gonna get an all time low mortgage interest -- you're gonna get a house that.
Is in a way it rock bottom pricing and housing affordability is the lowest it's ever been on record so all at all if you're ever gonna make you jump now.
That they need getting people to jump on -- seen some wacky -- -- lately that one home prices are still falling.
And two that a lot of kids are moving back home because -- instability so there doesn't first time home buyer.
The biggest issue is housing formation we're not seeing the numbers we've seen in the past new homes are being built -- stop building homes give or take 20072008.
Completely nonexistent right now you're looking at whatever inventory is it is what is.
And you're gonna slowly see them come down but sooner or later how the information is going to get bigger than the inventory that's out there I'm not saying it's -- tomorrow thing.
But a couple years down the road you're gonna have that issue and that's when you potential turn into a seller's market where they'll be more demand than there will be.
Of the inventory seeking your -- -- the need then for people just need place to live.
Correct I think right now people are if -- for argument if they get foreclosed on they -- -- they need to go somewhere.
Where are they going they might be going into a rental they might be moving in with friends family whomever and then you have the kids out of college there's the people just starting their life.
Traditionally Michael rents apartment they might go buy a house you're not seeing that say a lot of those are moving back end than at home OK so let's talk about then the buyer's market that it is easy to buy it if it's not the first time home buyer.
-- is it investors if if you have -- -- king right now yes I mean you have cash in your terms are you could swoop in and buy something today.
You can really set your own terms and that's the beauty of the market if you're going to get to play that game.
For those potentially looking to get him for the first time they were go from one property to another they have -- what I call it the mortgage bogged down.
-- hopefully get a mortgage if they qualify but the banks are gonna completely put you through the -- and require everything and then some.
You give documentation the last word again that last for the same documentation -- very frustrating process but in the end there's money there.
But you know US has come recently that said.
One it's an investor's market and to you know think about lake.
It's start small I guess like college sounds well I -- -- that you're looking for investment to me college towns always great placement he really ninety.
He's you have obviously kids who knew right pleased to say they don't -- thing in the dorms or dorms overflow.
Why not buy into fairly frequently -- family.
And you always have stability revenues you have that these college kids.
As they -- -- down -- one graduates they handed to an underclass and you know for the -- right -- data paying the -- I -- -- worry about that was you know the crazy keg parties that -- house yes but you're also not trying to to build them by the -- -- you're getting into -- to what you understand.