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Should We Be Bullish on Housing?

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    CoreLogic chief economist Mark Fleming on whether housing has hit bottom.

  • Duration 3:26
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-- -- data out today shows pending home sales are at their highest level since 2010.

And then of course the case Shiller home index we got yesterday also showing an uptick in US home prices so -- housing they hit the official bottom.

Joining us now -- -- chief economist mark Fleming.

Mark you pretty bullish on housing aren't -- that you believe that we're officially in this long term recovery.

I think yeah all the data that we're looking at are the ones you mentioned and many more are all pointing to.

This year it being different than in years past we've had house price gains.

Over the last few years in the springs and the off seasons -- stated.

And how does have a net loss of the end of the air -- but this year there is fundamentally things are very different and there's a lot of fundamental support for housing this time around.

I -- I'm with here because this time there was no first time home buyers tax credit there were no artificial bumps in the housing market at the same time -- -- -- Take the case Shiller report in particular it only is looking at twenty cities so it's it's a snapshot.

They're still so many cities states.

Connecticut in particular lose -- home prices still dropping my area I'm in north Jersey home prices still falling by and then.

Well yes so we have we have our house price index that's much more broad covers the entire nation.

Under the -- essays and and rural areas and our index has been showing consisting gains.

Month over month and year over year for the last four or five months.

It's really been driven by fewer -- sales fewer foreclosures into the -- -- stock in the first place.

And so slow but improving demand and sales.

The same time now we are losing the ability to -- depths.

Mortgage loan debt that's forgiven.

That's going away at the end of the year so do you think that's at all.

Pushing people sort of -- you know making them -- the -- to get it in the short sale or the foreclosure before the end of the year maybe that's artificially driving the numbers.

I mean I think that's a really good point I'm not so sure that people are able to tying those kinds of decisions particularly short sales and foreclosures.

-- about extends it might have more of an impact near the end of the year.

But I think it's really more intrinsically.

Mortgages she's finding a better way.

To solve the problems interest rates foreclosure and that's influence but influence in the market which -- -- sales which are really the worst kind of thing in the housing market to have.

When the consumer comments number we got back yesterday -- -- was down so we're not we're not film allowed yet right and in some and yet they still don't have.

Equity in our homes and whether that's a good thing or not you know no ATM option there but.

-- is still that's your biggest asset if you don't you know you don't like it that kind of bums out.

-- hard to feel the love and I think the -- the idea of uncertainty.

In a place many parts of our economy and housing market as well people I think are holding back to some extent on buying houses because of that.

And the negative equity issues we estimate that almost 45% of all mortgage -- Are what we call under equity that is there either underwater or have less than 20% equity.

And those folks can't sell their homes and -- -- equity into a down payment on a new -- That's holding back the demand side but it's also restricting supply.

And actually being in the short term paradoxically beneficial to the housing market.

-- -- still really tough out there mark Fleming now thanks for sharing your thoughts.

Core -- chief economist thank you sir.

Well although it has.

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