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Can Housing Continue Positive Momentum?

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  • Description

    Homeservices of America CEO Ron Peltier weighs in on the state of the real-estate market.

  • Duration 3:52
  • Date

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-- -- So some positive signs on the housing market today is existing home sales hit their highest level in nearly three years we -- joined by Ron Peltier chance.

CEO phone services of America is a division of yes.

Berkshire Hathaway a major realtor in this country -- we also got housing starts up a little more than 2% from the previous month.

Can all this mad -- on that we see continued.

Yes -- day again it's I think we have we called an end of the housing -- correction and downturn at the end of the year.

Beginning of this year were continuing to see.

Positive trends in sales and home prices.

Meaningfully from the bottom and from last year 10% and existing home sales.

And I think that trend will continue through -- -- balance of the year and home prices are up just under 10%.

And I think will continue to see that trend.

We're a long way from total recovery but we're certainly in a recovery process.

What's the most worth something you see running such a vast real estate business is it is still the availability of credit.

Isn't -- inventory we talked about that a great deal you said you see a real lack of supply.

Particularly on the horizon when it comes to say 894.

Closed -- non real estate owned homes.

Well -- -- and you get exactly the issues to keep this up that night credit standards continue to be extremely.

Extremely difficult.

You know the average fight -- -- to get a mortgage is about 740.

Clearly.

Eliminates a lot of people that are very very interest dead the end securing financing to buy a home.

-- that is the mortgage rates are incredibly low but the credit standards are incredibly high in and out so there's a disconnect there.

The other thing -- the inventory of we are clearly at a point where.

The available inventory.

Four.

The growing demand it's moving back into the housing market is inventories not there -- at about 2.4 million homes.

Frankly that is at a very dangerous slow relative to the size of the market and then some of those homes that are on the market are.

Our distressed their foreclose so they need work and they wouldn't qualify for.

A conforming mortgage which also take -- -- and I think that bodes well for.

New construction and those numbers are released a wills that it continue to see new construction numbers will continue -- improve over the months ahead.

Is it -- robbing price is a good thing because it actually gets people off the surface so to speak.

And they say hey I better get in while the getting is good there are if I get a mortgage their record low mortgage rates are close to let.

And home prices are starting to pick up is that -- -- nice 12 punch rial.

While it clearly is so nice 12 punch I think there's a third one they're still about.

Eleven million homes.

Of them that have mortgages that have negative equity and as the prices go up.

You know some of those homes begin to move into way at least parity.

The value with the mortgage or they start to actually have some equity.

And many of those people.

Are locked into their home currently there are current on their payments but they can't sell and take.

That the selling costs in the closing costs.

In -- take money out of their pocket to get out of their homes so as prices go up.

It will create down more inventory potentially be available.

And I also think that that's sellers who I see that.

That -- homes are going up are that are not in negative territory I think in this a good time to put their home on the market.

Ron has great to see you as always Ron Peltier he'd take -- let's hope for hockey season.

Time for our reality -- the lock out over thanks data.

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