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Where are the Homebuyers?

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    FNC legal analyst Bob Massi on the current state of the housing market.

  • Duration 3:49
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He says that the best investment as a single family home -- a good neighborhood.

Right now mortgage rates are -- -- Lowe's home prices are at the bottom.

They're about to back in some markets join in the company right now from Las Vegas is real estate attorney and Fox News contributor Bob -- Bob Bob.

I know that you're sort of from the same school as well so do you still agree with Stewart that buying a home is the best place you can put your money.

Yeah it is the problem uses two different discussions here first of all Charles it's not that easy for homeowners.

To -- A home right now because of the bulk of investors that are coming in and buying box of homes for example in Nevada and Florida.

The Canadians in the Asians are coming in and they're buying droves of homes they've made by 304050.

Home so you -- make an offer in those homes.

They just did you opt in your out of it.

It just -- enough Charles what is selling in Las Vegas and for our new homes of the builders now had their own division of lending.

They want 20% down they're charging 567%.

Interest on the money.

Even people of problem bankruptcies foreclosures and short sales are able to get into new homes now so there's a -- the vision of what we're talking about.

But here's the thing though Bob to things parts of all.

It -- if all of these investors are beginning to flock to Las Vegas shouldn't that be the sign for individuals who have been sort of sitting on the fence.

To make their move -- meaningless and there's got to be done and not -- to Vegas not -- Lester but before.

Every -- I -- I was turning the TV and they were channels and just sprawling nothing but houses for sell lot of foreclosures.

This -- got -- -- is still have to be some sort of opportunity there -- for the individual homeowner.

Yeah I mean surely there is it depends on what area -- time you're talking about just like this is a very much of it.

Geographical problem you know if you talk to people like I said before from Pennsylvania people from Pittsburgh he talked about what's happening in Las Vegas or Florida.

It's a completely different discussion because we overbuilt were -- yes there's it's a great time -- buy if you have the money to get into it.

Then you're able to do it fine.

But the big issue as you're competing begin with these big investors that are coming in and here's what they're doing Charles or don't want to two things.

They're they're renting -- -- -- out to people who lost everything.

Or they pay cash part and they carrier -- -- -- as an investor Bob yeah.

You go Bob -- that's Shapiro you just brought up the you know good -- -- people buying them as investments rent to people but this question of whether a home is a good investment I believe if you go back a hundred years.

A home as about the worst investment you can make unless the cost of ownership is cheaper than renting you should not buy a house cinematic I mean their return on -- how has been like.

Two -- 3%.

Yeah I but I yes I think you're right insofar as you look at the numbers but I think you gotta look at another is that that it's about one.

No not always though not all the time because there is a psychological element to the sad that we have to look at.

People want they have homeownership.

People want to think that they have something that they own -- which candidate psychology unique -- you -- -- -- money in your pocket to buy food all the dollar no I understand that.

But when you go go by home and -- three and a half percent interest rate.

People look is say I can get back -- though because even people who lost everything.

Everything that they ever had.

If they get a chance to buy a home again it makes them feel good about themselves so there's a real discussion I agree with you you put her -- paper.

There there's that we can't even do that but there's a psychological element to this and in this country -- -- are getting their jobs about homeowners she.

Bob this is Charles and I gotta tell you I agree sometimes I just around a look at my crib and I'm like man that's good that's good absolute -- the -- price tag on that.

Of course that I'm -- right when it comes to the numbers and Bob we'd love -- on -- -- appreciate -- --

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