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Still Values in Real Estate for Investors?

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    CoreLogic Chief Economist Mark Fleming on investing in the housing market.

  • Duration 3:37
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Stock market and since your not getting a lot of bonds could discounted real estate -- the safe haven you've been looking for for your cash.

Joining Dallas mark funny he's chief economist for -- large -- mark I don't know if -- heard.

Jeff segment but there are people who were who were making bets and -- and over over time this -- making a lot of bets.

On the market eventually coming is that a wise choice.

I think -- I think he's right in this segment before he said that prices are very low where's that at historic lows for the price levels are coming off the bottom.

And so we know buying an asset that's now beginning to rise in -- a good thing particularly if you hold it for the longer term.

And we should say by the way that the number of housing contractors has gone way way down so if you're if you're in that business you're perfectly placed -- what they're not.

What if you're not a contractor and you just want to.

By a discounted home that you think is gonna rise in value not a flip situation to hold onto it for years so and then sell it.

How they're getting harder and harder to come by one of the reasons why it housing prices are recovering in many markets is because there's fewer and fewer Ariel and short sales out there on the inventories are very tight.

Particularly in the low end of the market the types of -- that.

I'm you know investors who would want to buy.

So it's you know that opportunity will go way as demand increases in supply shrinks.

But you know I'm always being told by these these folks who were a lot wiser and I am about real estate that -- you don't look for the discount on you don't look for the cheap homes if you do that.

That's a fool's -- what you do is you try to find the solid mid priced homes 20300000.

Dollar range if you're looking for investment are they right.

I'm particularly yes in here and individual investor of course price levels for very very.

Very much depend on where two or 300000 dollars is a good mid market in some places is actually high end and others that.

You have to find the places where there's demand -- the idea is to either sell that are rented and in either case you need to.

You know has to be a place for somebody wants to live and that's where are the best places than where you looking -- -- the -- deals.

But the -- -- deals right now are about invasive and we're -- places like Phoenix and Las Vegas sends some of the hot markets in 2012.

Price appreciation.

And investor demand and going to places like Indianapolis for example some midwestern markets that -- would really think of are we haven't really talked about very much.

So so the middle of the country because it did -- thing is the regions that were hit the hardest are are actually recovering better.

But that ones that weren't hit as hard as Las Vegas for example or take a little longer to recover right.

That's right exactly that and it's in the middle of America -- many of these mid markets where prices are a lot less expensive.

You know you can still get 15100000.

Dollar homes and their good homes in markets where people wanna live and the opportunity is there.

By the way even though we know that this is a different situation this housing crisis is worse than.

-- we've seen since the depression because everything was leverage on nevertheless there -- housing cycles are we at the bottom.

Of the housing cycle or are we due for a correction right now just in terms of timing.

-- I think we've we've really turned the corner mean we've had house price appreciation in the last three years in the spring summer season and then it stated in the fall.

That this time it's different in the sense that we have much better supply and demand dynamics housing inventories are down to five or six months' supply which isn't indicative of tight markets.

And so I think -- -- looking at we're gonna have a good journey between twelve and potentially and -- when he thirteen.

Of course caveat to buy what goes on in the broader economy great information mark thank you very much mark Fleming core logic chief economist appreciates governor.

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