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Anthony Sanders, George Mason University finance professor, weighs in on the economic comeback and how it is impacting the real estate market.
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Peter thank you.
Continue on to speak with our next guests get much more on housing data with Anthony Sanders Anthony -- finance sat.
George Mason university in a great friend of our show Anthony.
In -- -- this morning you Warren.
Icebergs ahead but to the extent they'll -- the Titanic.
But he thanks for housing.
Well well that's correct -- -- you know be honest with you were having the worst economic recovery.
Since the recession since 1982.
When Chester Arthur was president so the fact that housing is doing as well as it has his miraculous.
Yeah yeah.
So that's and that's -- said perspective.
But again -- the fact that you -- entering into the winter months again -- will call the autumn leaves.
We expect the housing saw prices and and housing sales is sort of cooling off as -- in the winter months some also concerned about the seasonal blip.
Right very good -- number camp but if you if -- look at this seasonally adjusted rate of units added four point 75 million Anthony.
What are your future expectations because historically we're still well off the highs.
-- we're gonna be well off the -- for a long time -- think back to Chester Arthur.
And that we're not getting anywhere near the 2002 to 2006.
Period we're still will -- we're gonna be below that for a long time.
You know people could point to the first time home buyer stepping into this market is.
Driving -- at least you know doing the clunky turnaround he had 31% in August 34%.
In July so it's actually trading a little lower and that kind of concerned meet what do you think in terms of the first time buyer and adding.
That support to happened to housing.
Well.
The first time buyers can go to the FHA Freddie and Fannie you're gonna have anything to do -- them because there's still having credit scores that are ungodly high.
-- that's the good news the bad news is for first time homebuyers.
They they're very uncomfortable but their employment prospects.
Even if they have a job they don't know if we're gonna keep it.
Unemployment is still a horror picture -- seventeen point 4% U six unemployment and forty weeks median duration.
Those are those are tough numbers overcome.
So the Fed's been awfully helpful in getting your research -- -- massive purchase of treasuries and agency backed mortgage securities and how much more it would as far as the equity markets are concerning even the gold market we've lost a lot of that's at Huey rally -- and ten so.
How much more -- -- be able to help the house market.
I don't think a lot of think I think the Fed's -- -- last bullet I think right now they're -- that the flooding liquidity.
Is not really helping mortgage lending mortgage lending is is decreasing.
And you can see that the numbers -- not gonna mention M two money velocity except for people who have had economy college.
Let's dip to of the all time low since the fights -- seventies and this is bad.
Yes so lack of supply pushing prices higher higher price is a bitter about being at this point in the recovery.
Well we would of course -- -- ever like see higher prices but to jumpstart the market lower prices -- still it.
Bear in mind though there are currently for the -- on the supply side.
There are still over two million homes that have gone through foreclosure.
Federal waiting for sale so we still have a huge supply off.
And the -- that hits the market that -- will help cure some of the supply shortages that we're alluded to.
Anthony Sanders think you for joining us once again.
