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Talk about the housing market doesn't existing US homes we learned today taking it did in the month of may further supporting Ben Bernanke's point that the housing market is not providing the recovery.
The boost it needs but there is an upside if your rancher or a landlord.
Joining me now is Alan Feldman Allen is the CEO of resource real estate and we're pleased to welcome -- So first take on what the data today says about the recovery or lack thereof of the US housing market.
-- -- the existing home sales numbers no surprise and I think.
It goes up a little bit it goes down today was down is really the symptom it's not the problem and what's going on and in housing frankly.
To buy a house and to have housing markets returned back to historical levels.
You need to have three things to my house you have cash.
Need to have good credit and you need to have a job.
And I think if -- Ben Bernanke those are the things that you're thinking about.
And to buy a home today people just don't have any of those things home today average about 200000 dollars or so.
And the equity requirement to buy a home is upwards of 20% now no longer the no money down.
So what does that mean I mean where do we go from here do we become a nation of -- and I don't know I mean maybe there's nothing wrong with that the whole point to buying is that you were investing in you -- gaining.
The equity and and if that's -- happily -- all -- That historically have in a home investment has been a very mediocre financial investments -- -- good reasons own a home.
But if you look at the numbers are -- a 110 million households in the United States.
And historically about two thirds of the people -- and 13 -- In the go go days of free and easy financing.
Homeownership went up to about 69%.
And now that struck down about 66%.
What that means is about four million people have moved from homes to apartments.
Most experts believe there were still gonna go down a little bit more meaning more renters and so what's that -- done is put upward pressure on rents.
And because of the factors of people don't have the cash to credit -- or there or the belief that they're gonna have a job.
US he continued movement.
To write in any mention job -- -- -- point brought -- here are three things played in the housing market the unemployment situation mean.
DCDs things sort of loosening up and improving so that again you know when you say existing home sales is a symptom money.
How how do you see those factors improving -- do -- all what kind of timeframe.
Well effect from the perspective over real estate investor which is really what and what what I am and what our firm -- we're always looking for the opportunity.
And the fact is is that the economy is going to recover.
When it recovers and hopefully some of the policy makers in the tough decisions that need to be made will be made.
While that's going on and it's probably gonna take awhile.
We see tremendous opportunities and rental housing.
Over the last two here nobody wants to move to the city them.
That's almost rentals are right in while in -- New York of course is a city about New York is a special -- when most expensive place that's sort of regardless like.
If you go across American you try to find.
Apartment to rent yeah hurt someone who makes an average income or not sort of other top 1% -- the bottom.
1% we're talking about the vast middle.
Died in the fact is it's hard to find good affordable rental housing and and because of that rents are rising in apartments and if you have the the skills to be able to manage and fix up those apartments you can really make some good returns Alan Feldman thanks -- session.
Thank -- and.
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