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Peltier: Housing is Back

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    Home Services of America CEO Rom Peltier weighs in on the state of the housing market.

  • Duration 3:00
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All right Nicole now to one of the other big stories of the day and that would be housing -- look at these numbers home sales jumping last month to their highest rate in.

Thirty years we've heard Ron Peltier in the chairman its CEO -- Home services of America which is a division of Berkshire Hathaway and maybe we can finally say it -- if we've been reluctant in the past.

Housing is finally turned the corner that's -- the worst is over it's off to the racist what -- -- -- I couldn't agree more I would say housing as back I think we as we look backwards housing.

Certainly has been in the -- -- box as it relates to the economy and it's been a drag.

But I think this.

Past year.

We have moved from my -- to being a a very small contributor and I think next year.

They'll start to assume the role that it played for years and that is says -- come as country emerges out of a slowdown housing.

Is a major contributor in in bringing it back and bringing growth into the economy so it's.

-- watching right now they've been waiting and they said I don't wanna get out and buy a new house because I think you know.

-- that he could they could have been thinking while home prices will come down even more than their started simple maybe not after looking at these numbers are they could be thinking that interest rates would be getting even lower.

Now they're starting to inch up at least up a little bit what would you say to someone who's been waiting it hasn't wanted to jump in yet.

Well -- been plenty of people waiting Connell and I think reality as.

I you can only wait so long and I think we have a number of the key metrics in place that would suggest now is the time we have inventory.

At at ten year low.

We're down to about two million existing home sales -- homes on the market.

That trailing ten year averages about two point six million so we are way below our our average and way below where we should be given the size so.

Of the economy.

Secondarily we've got record low interest rates at about 3.4.

Percent I don't know.

I'll take what wisdom would suggest that they're gonna go much lower.

And I I think the other thing is is that down.

You know we've had no new construction for a long period of time so we've got no backlog.

Of inventory demand is far reaching a supply and I think.

That time is right right clearly you have to have a job and -- I have credit but real quick.

-- you debt yes exactly and also that on the rates just go back -- for second.

You said there's no reason to think they're gonna go lower but no big move up either right if you want to hang out it's not like you're gonna miss in his -- some huge move up in interest rates anytime soon do you think.

Noted clearly not -- -- -- well they may not hang at at at 3.4 but but the other side of that as we are seeing.

Price increases said the pressure right because of limited supply we're gonna see home prices go up so.

If you're gonna get you know what you believe is the best deal probably.

The next 345 months but the best deals are gone aren't Ron Peltier always good to have you on thanks for joining us today.

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