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December existing home sales missing estimates -- -- percent from November -- 160000.
Less houses were sold than expected but.
Optimism on the ground right now results of -- new Coldwell Banker survey show that realtors expect much better sales.
Joining me now the details and a Fox Business exclusive and yeah.
Baker group its CEO but -- -- you know by the way budget because CEO thank you great to see -- talk about these numbers existing home sales.
What do you make of the that drop ended December.
And the optimism about 2013.
Sure well you know if you look at the month over month drop.
That's just simply reflects normal seasonality what I think is far more relevant or year -- year figures.
And when you compare December of this past year 20122011.
Sales were up over 12%.
And probably even more significant that is what happened to -- prices is quoted by the National Association of Realtors up over 11% year -- And with inventory now dropping to four point four months -- is what is assumed to be equilibrium that six months.
It is creating this whole new environment of optimism that we're seeing reflected in the survey from our -- so.
Money is basically -- I mean we're talking three and a quarter percent right up to a thirty year fixed.
Inventory is low so great time to be a seller what about that younger generation that's looking to -- do you think there's -- -- be activity in that group we still have unemployment.
In -- 20% right now.
But we are seeing a reversal in the and and in this force household formation because we know that.
During the last few years -- dropped to a close 400000 vs what was it historic average of about one point three million.
The figures for 2012 came in about one to one point one million.
The projections are closer to one point two to three million so we're returning to a normal amount of new entries into the marketplace and that is now.
Releasing what is the move up buyer and so we're seeing now in the survey is an example.
Moreover agents are having conversations earlier in the year -- sellers about putting their homes on the market.
And with that move up buyer yes they're gonna sell right now good market to sell that the low interest rates good time to buy as gossip -- we're gonna get that your existing.
-- sells minute not you you do a survey of your agencies and let them think you know the guys and gals that are on the ground and here's what they tell you about I think this is really had to say.
54% saying as you mentioned that there's a lot of movement move up buyers that are out there.
But 66 that percent say that Marseilles are gonna happen -- -- the very bullish on 2013.
Answering your getting your bullish on promised long.
Yeah and and certainly that was a figure that the indicated for the percentage of people who would enter the market that sellers would come back -- the market with the level of distressed assets foreclosures being reduced we're now find out.
Cleared out and we're now planning to have more of the sellers today are realizing that now is a great time to re enter the market take their lives off hold in move onto the next chapter of their life.
We have a -- your survey which is interesting in this is the nuts and bolts on and -- -- well is what is key to.
To selling a home in this environment for those are looking to do so and they're still saying 58% you've got to have a new -- updated kitchen.
And their -- Aventis about the bathrooms a kitchen bathroom and then master -- 34% upper space not so important at 17%.
What do you make of these number.
It's it's moving back to a traditional market this is what we're seeing if you looked at some of the surveys that we did over the last couple years you started to see things like media rooms and things or more exotic.
Now it's back to what people generally want in -- home it's all about just the regular lifestyle.
We -- moving back to a traditional market which is where the industry needs to be.
Pulled off on the Japanese tea garden just go for the kitchen about the renovation.
But -- thank you very much good to have got a shout thank you so much.