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Consumer Confidence Key to Housing Market Recovery?

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  • Description

    Citi Mortgage CEO Sanjiv Das on the outlook for the housing market.

  • Duration 3:45
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Well joining us now the president and CEO of Citi mortgage find you -- and it is great to have you with us this this.

The housing market itself right now is it showing what some say others say that.

Appears to be I don't know whether speaking hopefully our we're gonna get your validation.

Something of a bottom here.

-- You expect us to think about the housing market and national in -- anymore Lou because.

We see.

Such a disposed kind of activity across different states different markets of their markets like.

Phoenix or around Detroit or Las Vegas there you see some improvement happening in the market because -- just talks so much from -- -- trough did you you just pick three of the worst hit places do -- the -- -- they would who has taken so now they're showing some signs of recovery.

On the other hand -- -- -- mantra that continues to fall.

And it's hard to tell hung on some of these markets imply Atlanta because it has it is also one of the hardest hit in the country continues to to plunge but I actually -- that a couple of weeks ago and that it was essentially because of oversupply.

-- -- Of homes and Atlanta.

The -- your original question it's been -- hard to close the housing bought them at a national level just yet.

And I think a lot who depend on.

But we do with the old fashioned way -- let's let's get -- With a mathematics level I can handle yet let's take a top fifty markets you tell me what percentage of them are doing.

Better look like they have bought well it looks like about 20% of them have improved I was looking for sixty to 80% -- So that's but that's where we are that it does not encourage the credit concerns better than a year ago.

And if you you know hopefully with consumer confidence that you know -- the -- -- what would it take what would it take to turn this around we've -- the thirty year.

Mortgages what three and three quarters percent yeah.

I don't know the fifteen year -- two it's less than -- Three and act.

So I mean what would it take to get people buying houses.

Well -- -- is a very good point home prices are at an all time -- Interest rates are -- -- on time though from a demand perspective the only thing that is principally missing its consumer confidence.

Once gone -- it's not a matter.

You believe.

They'll price yeah it is simply a matter of the consumer yes stepping up and having the confidence that he or she will have a job -- a that the property values won't fall farther correct.

And that's our.

So that's a question of instilling confidence that yes it's so it's it's it's horrible question of rights it's not a question of affordability.

It's a question of consumer confidence and a lot of that comes that not just home prices or expectation of home prices but also unemployment.

And you know that the confidence that jobs -- today.

Jobs have been created.

Give us as we wrap up here give us your sense as to when you think this market will turn.

I understand you candidates and national -- but we'll start.

What are we going to get about 50% of those top fifty markets.

I think it would be safe to say that by the end of 2013.

Provided we take care of the foreclosure.

And then -- -- -- and -- corrosion and that excess supply.

Need to get diverted or installed.

Consumption before we come up foreclosures and short sales driven through the market that needs to their bottom third of the market right after that -- Our -- great to have you with us thanks for being -- -- -- -- thank -- and we'll take your temperature here a couple months and see what that what works like if we hope.

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