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Got some good news on the housing front home prices in Twitty major US cities rose for the fifth straight month in June.
And show the first year over year gain since 2010.
That's according to latest S&P -- Shiller home price index -- earlier today.
-- it down last Robert Shiller who's one of the co authors of the study if we have seen a bottom.
I think it's too soon to call a bottom but it might well be I think some people will be kicking themselves -- That they didn't buy now but I just can't be sure that's the problem this too many clouds on the horizon.
Loans are those clouds -- -- rain on the housing parade and joining us now Jeff Rogers Integra realty resource -- chief operating officer.
Jeff I'm glad to hear because there are it.
There are other issues for won the Shiller report is only twenty cities doesn't include Connecticut which is still struggling for.
Also doesn't you know we're not taking into account all the foreclosed properties that are out there are we.
We we are not but if we take a look overall what's happening -- you look at the metrics are out there.
We're very positive trend brief look at right now all the metrics and last quarter.
With respect to housing.
It's it's very positive -- the trend is going up so.
You know I call the bottom but few months ago and every month it's getting better and better if you take the case of case Shiller what's out there it is showing that.
You know we -- we have month over month we has.
Quarter over quarter but we have annual appreciation.
This the first -- 2000 attend.
But it's very very different very important reason is in 2010 it was propped up by the federal housing credit right and that is artificial like most federal programs when the -- -- runs out.
So about the demand so that's why we saw a dip in housing.
But however that this was actually driven by market demand that is more sustainable is more real so when you discount 2000 -- ten.
We actually haven't had this and stay at the downturn so 2006 with the last time we had annual appreciation for this -- them a major day for.
Real -- -- that we've seen prices go up at the ring is a shortage of inventory in many markets which I find interesting because I still get the sense is a lot as Tracy mentioned a lot of foreclosed and distressed properties that still have to come into the market.
So was it a little bit of a false bottom.
You know did the numbers are skewed just a bit because we have about two million units on the market right now and that's that's -- 40% down.
From the peak -- -- asked about 25% down from last year so very tight supply however if you look at the month -- -- numbers for.
The purchase of -- need homes.
We're still up evil for tight market and that means if we had more of Victorian market reaction would have -- -- -- because.
This would still in a buyer's market and we have been for the last six years -- -- of -- are finally exactly what they're looking for.
Then there won't wait but they're gonna pay more for it once they finally don't a buy something where the price is still gonna go down to actually get on my -- and I am quite territory if you talk of buyers who have been -- in the last quarter.
And they look at something similar today that's what -- -- -- have gone up you know what next quarter.
It's going to be up here.
What story point though that you know -- you mentioned the foreclosures -- is many times he's foreclosed properties are trashed.
And nobody wants to buy -- so they had no choice but to go to regularly priced homes.
You have consumer confidence that's down though you don't think this is a summer time -- get the kids settled for school and then we wait.
Because it's market driven and not a federal program I think it's sustainable tough talk a little bit about the foreclosures could we thought -- -- commercial real state as well.
Everyone thought that this this avalanche of foreclosed properties would hit the market and people get rich again.
Like -- could have won the first time but.
It's just not the case -- a lot smarter.
We're seeing a lot these homes be re purpose for rental properties you know and thanks so -- -- holding harmony gold came out over time as the market recovers so.
I don't think we'll get -- avalanche that that they -- -- we're gonna get.
Yeah and the -- -- -- can get a loan anyway snuck up and that's.
It's pretty deadly anti bag and he died and about that stuff you thank you.
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