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Zillow CEO Spencer Rascoff on what the government can do to help boost the housing market’s recovery.
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Being held today to figure out how we can get the -- of life back in the US housing market to really fire up sales CEO of zillow Begin on this site one of the hosts of that forms -- around Scott joins us now.
With the Fox Business exclusive but what is the best idea that came out of this event today.
Well we talked -- -- about foreclosure.
Oreo sales to bulk bulk sales to investors this is a way to help flush inventory out of the system.
Fannie and Freddie are sitting on tons of inventory and if we can find a way to facilitate more of those cells to investor groups rather in -- rather than coming out peace now that'll be advantageous to -- that says Spencer Otto.
-- we have the bottom of this -- can we see it from here well we can sort of see from here so we're through the worst of it but we're not quite out the other and yet so some numbers here stability and it shows home values are down around 25% from the peak.
But we forecast about another 4% decline from here step through the worst but but not quite out the other end.
-- -- I I'm so interested in in some of the other ideas that came out there because they're still not only the inventory out there but the so called shadow inventory which is the what the banks won't release because they do not -- -- take the big hits for the losses what one of the key.
Foreclosures have very different worked out rates in different states for example in California which is a nonjudicial state.
Foreclosures -- much more quickly -- Florida which is a judicial state foreclosures have to work their way through the courts.
That means that it can take up to three years in Florida for for closer to actually go from the -- today.
Delinquent homeowner makes their last payment to one home actually -- liquidated as a result you see much higher recovery rates in California markets in California actually in some areas.
Have already flatten and actually are starting to appreciate a little bit worse Florida is still declining so this is a policy decision though of course because.
Do we want more foreclosures well on the one hand.
-- recover more quickly if we would just flush mortgage foreclosures through the system on the other hand it will be more pain early on so what you have to pick your poison and I guess at this stage.
What can the government do we've had mortgage modification which was just a drop in the bucket is this something more tangible and quicker that the government can do right now.
Well at this still a form the chief economist from the Treasury Department talked about.
One thing that they're trying to do which in these expand happened -- so that more people can qualify for refinance program so I I think that clearly.
The first version of park.
And most people were not able to take advantage of it and this newer version apartment we think we hope more people -- -- take advantage of it I'm.
Keeping mortgage rates -- is obviously important but.
It's not just about mortgage rates it's about access to those rates to show how people qualifying with the banks these days on banks still -- shown you know it's it's a bit of -- -- what the government's -- needs to do is to try to increase job creation.
And all of these things that housing experts are about mortgage -- and then we're to -- its that are.
None of it really matters if -- -- unemployment is too high when you look at what's happening to local home values around the country.
Areas that have.
Good at local employment pictures are doing much better at Washington DC for example with a strong and job of environment -- -- health care.
The military in the government.
DC is actually recovering quite nicely you compare that with Atlanta for example which is still a waste land in terms of home values.
Homes are still declining almost 10% yes do you -- a Pulitzer Prize there there just a -- -- the economist -- did he say anything that shook the the house down about this what what professor stiglitz had to say was.
This took us a long time to get us assets can take a long time to get out.
Quite doubtful -- straight ahead all right spent the rest off CEOs really have a great website by the way thank you so that break but it's a great -- thank you very much thank you our top crispy.
