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Homeservices of America CEO Ron Peltier weighs in on the current state of the housing market.
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We've mentioned it just a short while ago contracts to purchase previously owned homes coming close two -- two year high last month Ron Peltier is -- CEO -- services of America out one of the biggest real estate brokerages in the country.
And a division of Berkshire Hathaway -- always terrific to see you from Minneapolis as always.
Run -- if -- if Americans think if we think that.
Interest rates are gonna stay as low as they are -- about -- this ballpark for the next couple years.
Why -- -- need to buy now -- do you think that's getting in the way of home buying today.
Well on good morning -- again I I think that's a good question and I I would say this set down.
You know after six years of people sitting on the sidelines.
Even though we've had a growing population.
It's it's a time to buy -- now for a several reasons.
One is that prices are at 2002 levels.
And -- this is the year that prices are going to start to move but it'll be zip code by zip code.
But it there we will start to see price increases in various markets in inventory is starting to be depleted.
We're at about 2.3 million homes significantly lower than the four point eight million at the peak so.
It's a great time to buy into your point on the interest rates.
We're at an all time low and interest rates and affordability said an -- all time -- so.
We really believe that recovery is in the early stages and it's a great time to buy.
But again if you think if prices are gonna start increase saying and you see a dearth of inventory out there -- it seems like you're not worried about more foreclosures hitting the market or additional inventory from real estate and and distressed properties.
Well we're starting to see that property being you know carefully.
Brought into the marketplace and it's being absorbed almost as quickly as it becomes available -- so.
I believe that we now have a level of demand.
Compared to the supply that will absorb.
Any and all the distressed real estate and at the end of the day we've got to get that distressed real estate pushes the pipeline.
So that we can see a full recovery but but there's enough going on right now that we are in the early stages about.
I think a long sustained -- housing recovery.
What about the ability to get a line in this environment of course that the government is still behind the vast majority of mortgages made in this country.
It but is credit available and are you seeing a lot of cash buyers.
Well we are seeing about 30% of all the buyers are cash and and I think that that good many of those are investors.
We are seeing -- buried this deal difficult credit standards and I think we'll see that for awhile.
But.
You know this -- posing -- engine where we're cutting hitting on about half the cylinders there's some very very good things as we talked about low interest rates.
You know high affordability but but does cylinders that are not all that.
You know sound and firing our our jobs and in credit standards so those are those are difficult issues.
And you know I I think they are what they are we we hope that they both will start to improve.
For the benefit up homebuyers and consumers but those are the issues that are still plaguing.
What has been a very very difficult.
Housing market -- hockey lover -- you -- in the playoffs.
-- -- Well you know there's a lot of great teams in the playoffs -- -- you know great team Boston.
You know lost that IA I'm kind of I'm just waiting and seeing -- that there's some good teams out there are civil latency.
00 I -- You're not welcome back you give or I'm positive -- -- the news Iran and they did it wasn't Jimmy Ron Peltier thank you.
