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Realogy CEO Richard Smith on the outlook for the housing market and efforts to reform housing policy.
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Tomorrow morning a critical report on the housing market existing home sales.
Our next guest says housing inventory is low demand for housing rising there's every indication that home prices will rebel.
Joining us now Richard Smith chairman CEO of religion.
Our real -- recently named by the way one of the world's most applicable company's Richard is also remember the bipartisan policy senators.
And I would say this for just everybody this is a lot of with a lot of words -- housing commission working to produce national housing policy recommendation great to see.
Thank you.
I by the way congratulations.
That's a very prestigious and report reward for any any company in -- leaders are congratulations.
Let's turn to this report tomorrow.
What -- expected to reveal wealth could -- You again and Hillary coverage choppy it's not so efficient that it's going to be a straight upward bound line that's been be up and down and but the the most important point that will take away from tomorrow's report.
Is that it is recovering on the trend line so.
We have demand.
Of price we'll follow inventories low we now have inventory -- almost normal rates.
-- six point four months that's down materially from prior periods we literally have markets where there is to war last -- amendment or.
A lot of people right now are -- -- of them -- those markets so that the move -- I give you some examples -- Miami couple weeks ago building offices in Miami where you would think.
There are three or four years of inventory we literally have.
In some neighborhood markets weeks of inventory.
If the house is listed as cells within days what about the influence of all the foreclosures now starting to move through the system.
Well surprisingly not -- mean the in the aria goes to the real state owned assets of foreclosed assets that we were looking for.
I've not shown up as -- -- when the attorney general lawsuit is actually done signed sealed delivered we expect that to change.
But I in the near term we've not seen evidence of that.
You're a member of the the business roundtable the group released some principles.
And witnesses for -- -- -- mean he's a little help Samaranch.
When when when the -- principles are of this facilitate the private mortgage market by and -- private lending and investment.
Enhancing standardization and transportation.
Transparency in the mortgage finance market -- -- government action.
Did any of -- -- talking wish I know you do we but better than folks are gonna need to know -- that is the folks running the government and then make laws.
What the world we want.
Well and I think it's fair policy base we were trying to avoided the granular data it often comes with recommendations like this so we established two simple policies just very principles.
One you -- facilitate the private market.
There's literally 90% of all loans -- guaranteed by the government.
There's no private market private capital as flat and not return that's not a very receptive environment so we're.
We've made it clear fix that end.
Reform the TSE's the longstanding issue three and a half years and the administration still no resolution -- other calls.
Fannie Mae and Freddie Mac and there that about -- 180 billion dollars of taxpayer sponsorship as they.
Remain what is -- three years into.
Receivership.
I mean.
More than business roundtable said listen we can get into a lot of granular data that's not gonna accomplish much given in and let's let's focus on two principles so we'll have an impact -- -- Make it.
Loud and clear to the administration and stand behind those principles and that's what they are electing to and -- you are you feeling better about this market.
You know the and it totals more important right now in the data in a recovery and the anecdotal -- along the lines of this we have.
Open houses where in New York City where there -- hundred to 200 people lined up.
-- go through an open now so one point five to two million dollar average price is gone within days they'll have ten offers and they're out bidding the list price by anywhere from five to 10%.
We start hearing things like that in your do you see.
Substantially reduced inventory in a lot of markets I'm mistaken to wanna hear a little more Obama panels -- median prices around 200000.
How they're doing they're doing quite well the first time buyer is very active right now the price value proposition is so compelling and mortgage rates are so low.
So listen I'm not one -- they get too excited about the anecdotal but this is pretty interest and so it's either an early spurring.
Or sustainable recovery one owns -- soon probably in neighbor right now it's stronger and we expect that -- students from Richard Smith is feeling better about -- model.
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