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Lack of Homes for Sale a Big Problem

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  • Description

    Homeservices of America CEO Ron Peltier weighs in on the state of the housing market.

  • Duration 3:14
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And signing -- contracts five previously owned homes in -- but the National Association of Realtors index.

Is up nearly 10%.

From this time last year Ron Peltier is the chairman and CEO.

Services of America up part of Berkshire Hathaway Ron.

You know what I'm we'll give you credit can you the last -- -- on the show you said inventory -- the lack of homes for sale.

Will be a problem and that's what -- NAR sad that very thing in this report.

Absolutely day again it it is a problem and I think it'll continue to be a problem.

We really have a shortage believe it or not of of saleable homes.

We have significant by air traffic and activity.

And that clearly there's plenty of reasons to be buying a home but there's not much to pick from.

Why is that given and talk about -- -- of distressed properties that are still on the market because these banks are still struggling to all flowed.

Real estate on foreclosures and why isn't the widened -- more inventory out there.

Well I think the banks are still holding very significant.

Number of distressed properties that's in foreclosure it's not on the market.

A lot of that property.

Has.

But deferred maintenance or its spend destroyed.

And that it does not qualify for a typical mortgage so it's not really available.

Did the average homeowner particularly homeowners at the lower and they're struggling.

For the down payment up 20%.

And and you know typically speaking.

A distressed property you know the the -- foreclosure really requires cash or it's going to require.

You know a major cash investment and -- the buyers are not really capable of doing that.

I think dubbed building has been at such depressed levels for the last several years -- it's beginning to catch up but I think as we look forward -- again it's going to be.

A very severe problem because with the growing population we don't have enough available housing.

And people are starting to rethink after six years.

Moving back in the housing vs -- apartments or are just -- Housing and how much of that do you think is because of these record low interest rates yet another record low according to Freddie Mac we heard that this morning.

Well I think the record low interest rates are are accelerating the enthusiasm in the desire but I don't think we can.

Discount the fact that if we look back historically about two thirds of the population.

Of the adult buying population.

Desires to own and occupy a home.

It didn't move up to close to 70% at the peak.

But the -- what kind of moving back down towards that.

That two thirds number and frankly I I think.

You know.

Owning a home is still a very very desired.

Activity by individuals or couples or families and -- you know.

That you can't deny that accelerant if they can bio home they would prefer to buy than rent.

They most certainly would Ron thank you it's great to see you as always thank you for taking the top Ron Peltier policies and thank you day gotten.

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