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Sam Chandan, Chandan economics president, on the current state of housing, and how the real estate market may be impacted by falling off the fiscal cl...
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-- pretty good year for housing in the latest Case Shiller Index showing that home prices are on the rise year over year beating expectations -- month of October climbing.
The most in over two years but is there -- court recovery short lived it if we fall off that dreaded fiscal -- Joining me now with his -- -- -- and send an intent to and then ads -- -- then.
Economics great to -- stand.
-- -- we gotta talk about housing it's been a pretty good year so far the latest reading house from case Shiller.
Also showing a pretty good gauge what can expect going ahead.
I think that if we resolve the fiscal clip of consumer confidence stays intact if we continue to see some modest improvements in job creation.
And the fact that housing is beginning to show some resilience is some that's really gonna support.
Some continued gains about a lot of people out there who -- when they do start to see you get that price trajectory turnaround are gonna say you know what.
-- mortgage rates as low as they are with prices starting -- -- now's the time for me jump back into the housing market.
There are a lot of positive factor is Sam but one net not so positive factor is its fiscal cliff that could -- force people to pay more taxes.
Could impact jobs across -- how worried are you how worried should we be.
How about the state of the housing industry in the end and what happens in Washington.
Absolutely we look at the latest economic data what we know is that housing is actually contributing to growth right now -- it's one of the few areas that's contributing -- a meaningful way to growth.
We could see that derailed if the fiscal -- is not result -- -- expeditiously.
If what we see is that -- has an impact on consumer confidence on businesses willing to hire and so employment slows down.
Those are two things that you know we don't have them in place can take real -- a very serious hole on housing outcomes.
And so yeah I think for the housing market as much as any other sector of the economy this is a critical issue.
What about the hardest hit parts of this -- -- we're talking up places like Detroit and Las Vegas which really bear the brunt of all the hardship how are those cities faring.
Yes great point because although that the index overall was up what we see some -- -- fairly different outcomes across some of these metropolitan -- new York and Boston early plot in terms of their -- reader gains but as you point out Phoenix and Detroit.
Some of those markets where prices declined the most have a little bit more room to rebound -- the numbers are better there.
But it's just also is that the case Shiller twenty markets that are fairly large metropolitan areas.
What we do -- Shibani is that there are a much larger number of small metros and smaller towns around the country -- really are still struggling to develop some momentum and housing.
-- so much of what the average perception about housing entails is their own home prices going up at one point do you think that the average American is gonna.
Be able to say I feel confident about what's happening with my district my my home and the overall industry.
Yeah I think that that's a dynamic that is supported by what people are reading in the press what they're seeing in these indicators.
And where is -- some of these indicators might be national in scope.
There headline numbers dot does a law to help change perceptions around where we are in the housing market.
And he could help to build some momentum -- can really be the thing that drives the inflection point.
And as certainly 2012 was the year that that housing market came alive let's hope that it continues everyone needs it to -- and then attend an economic thanks very much.
Thanks.
