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Budge Huskey, Coldwell Banker president and COO, on the current state of the housing recovery, and why he says we are returning to a traditional real ...
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It's are well call it two steps forward one step back for the housing market sales of new homes fell by point 3% last month to an annual rate of 368000.
-- -- so.
Well the littlest thing about the housing recovery when joining me now is -- husky is president and CEO of Coldwell Banker he'll be CEO by the way.
On January the first -- congratulations -- that buddy system up.
OK look it seems to me that most of the date of this coming out on housing despite today's new home sales numbers all pointing in the right direction.
The recovery is on it may be very slow but -- -- are you confident that we're on the right track.
I think there's reason to be as you indicated the the latest figures on new construction sales down only slightly from the parliament but I think that's to be expected -- just natural seasonality.
That would see -- this time of year the most important figures are what we're seeing.
Year over year in the same month in October sales of new construction -- 17% over the same period last year if you look at the resale which is much larger segment of the market -- We've now had fifteen straight months of consecutive growth in home sales year over year.
We've had probably lower unfortunately though.
Eight months of consistent growth year over your home prices and that is probably the most important side of an economic recovery cut that is -- bidding war.
Had by house -- home prices went a long way down have a long way to come back and we know that -- -- -- -- is -- homes right now which would suggest that's good for home prices I would imagine but.
They're not coming -- perhaps as quickly as you might think.
I don't think they're coming back as rapidly as anyone would -- But we always know in every type of housing cycle what what you see is unit's return first housing prices -- second there is a lag effect and that's what -- were experiencing.
In this in this situation is well you indicated inventory though that is something we're watching very closely up.
Obviously the prices have increased -- most most prominently in those markets were inventory has been.
Reduced significantly there's there's greater demand than there are.
Actually homes that are available for sale right now.
We had to guess yesterday who.
Had a much different outlook for the housing industry basically because it's very hard to get credit and with new rules and regulations in places.
In place next year banks but just very Leary to make all of a big loan of of any sort Tom and you know people with -- -- Schools -- 720 of being turned down is that the major headwind facing the housing industry right now the ability to get the mortgage.
Other than an -- -- I would suggest credit remains a challenge certainly in housing but when you when you think about it.
According to and they are there will be almost five million homes sold in the United States this year the vast majority of involves some type of a mortgage.
And so there is financing is available especially for those who can qualify -- -- come.
Document their assets so right mortgage financing is available one of the things that we're looking forward -- in 2013.
-- some of the key decisions that are being made -- relation to the Dodd-Frank bill right especially regarding qualified mortgages -- qualified residential mortgage that'll ultimately determine.
The availability of credit in the mortgage industry going forward.
We'll be following that closely about husky soon to be CEO of call -- going to -- you so much for being here thank you appreciate it.
All right we gotta talk about cars again is claiming its biggest in the last hour of trading she's taken things -- -- over jive with.
