Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Where are the Best Places to Buy a Home?

Details

  • Description

    Marcus & Millichap’s Hessam Nadji on the outlook for the housing market.

  • Duration 3:39
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Something that's actually been pretty good the housing market it's been showing signs of strength across the US -- buyers returned to the market.

But if the bounce back a head fake or is it real has some not GS markets and -- -- senior director of research of the advisory.

Joining us now -- a Fox Business exclusive of -- -- at the sort of rent vs own point right now as well but.

First off do you think that the recovery that we've seen so far is real.

-- good afternoon it's a pleasure to be on the program David glad -- glad to be joining you.

Yes -- the recovery this time around is not a head fake it has a lot of momentum and it has a lot of fundamental drivers.

That really make us quite convinced that it's it's sustainable.

First of all we've had four years of underlying demand for housing.

I've been created with supply -- being pulled back X extensively.

And that in and of itself is a very important factor in why this recovery is sustainable.

Okay -- affordability.

Is is certainly an issue affordability has reached new highs.

After reaching lows during the big bubble that of course has got to be a huge issue and does this go for both.

Let's not point for renting because we know that the rental market has got very pricey but for homeowners.

The rental market was the first to recover -- -- -- absolutely right because people were very wary of buying homes and they couldn't qualify for loans.

Qualifying for a loan is still very tight.

And of course the job market hasn't been great but it has been improving over the past eighteen months or so.

So where we are today is that there's plenty of demand for.

Both the rental units.

For that market to continue to do well but as we see more more consumers qualify for home loans and psychologically begin to.

Take more risk and be convinced that the market is has bottomed.

There are now willing to actually buy homes we've seen -- major price correction of course 30% plus which is unprecedented -- in them modern US history.

And there's now more more evidence that the price gains are are sustainable but we have to remember that the decision to buy vs rent is no longer just about pricing.

There is a lifestyle preference we have many many demographic factors that are pointing towards that -- continued strength in the rental market.

But the good news is that the underlying demand is strong enough to support both the for sale market and the rental market going into the next three -- five years.

Have some let's take it to the maps because we want to know where the best places to buy are right now it -- -- up the case Shiller.

Home price index which want to get for the fifth month in the rove showed some real -- about was a good sign.

Where greasing the biggest price drops of where we seen the biggest jumps and where the best places right now.

Sure if you look at the price increases over the past year.

Liz you have markets like Phoenix for example Denver Dallas Orlando.

Some of the markets that were hit very very hard showing big gains in -- median home price on a national -- we've seen about a 10% gain in price.

Year over year and then there are markets that are still lagging.

So it really matters quite a bit how much job growth you're seeing in a metro for example Phoenix which is registered the biggest jump in prices.

Has added about 50000 jobs over the past twelve months.

That's a very important indicator the other indicator -- have if we've burned through the shadow inventory meaning a lot of vacant homes and a lot of foreclosures.

Across the country you've seen foreclosures fall to about 18% of total sales.

From a high of 30% which is another very important indicator that tells us this recovery -- sustainable off.

I'd like to hear that recovery is sustain a -- Thank you so much it's good to see you have some not -- of markets Billiton up thank you very much the pleasure thanks --

Load More