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S&P Dow Jones Indices Managing Director David Blitzer on the outlook for the housing market.
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That's my next guest helps compile and analyze the Case Shiller Index S&P index committee chairman David Blitzer says housing is clearly recovering and that it's contributing to economic growth welcome to you David.
Thank you -- and still when you look at today's case Shiller number combined with the component of the consumer confidence index that shows there is pent up demand to buy homes -- have to be very encouraging for housing recovery.
I think it is housing is clearly on a recovery -- -- six months ago we still had doubts.
But we've seen home prices move up -- very nicely since then.
We've also seen a lot of other major statistic housing starts existing home sales new home sales.
All events as well which.
Thanks -- we -- up though I have contracting -- -- pending home sales number yesterday was incredibly disappointing weaker than expected exactly to anything other than the fact that this is late.
Follow winter just in.
Seasonably slow time for the buying market -- First it is clearly a very seasonally slow time for -- housing second of all we've had a lot of grunting groaning -- Washington over fiscal clips tax -- he's spending cuts.
The rest of it which he's got to give a few people pause and I think that we'll make it a little bit choppy but my guess is in my senses.
Looking back a year from now we will have seen.
A year of solid solid gains in housing and everything going in the right direction what do you make of the argument that home prices are rising because of lack in -- lack of inventory.
Driven by pending foreclosure -- You know -- we hear two things repeatedly.
Is no houses the buying inventory short this is colossal shadow inventory of homes about the -- into foreclosure.
About the get auctioned at about and it is on -- -- it.
And.
Clearly one of these stories is got to be a little bit wrong in in one pressure and -- The housing has picked up a great deal they are undoubtedly some spots where inventory is a little bit short.
Phoenix which you know 45 years ago look like you could never build another house in Phoenix in -- -- that nobody -- wanna buy -- house in -- Prices are up 22% over the last twelve months.
So there are some local dislocations but I'm Norma housing market always has local problem how would you characterize the health of the mortgage market right now especially for low equity buyers.
The mortgage market -- fortunately remained that they difficult.
The banks were very good as soon as the horse was out of the barn and about 2007.
Then lock the barn and not the fence -- who -- the key man and getting them to.
Ease up -- and credit they shouldn't go crazy like they did six or seven years ago.
But that does make it very difficult and especially for people who current mortgage -- underwater.
Had some credit difficulties during the recession.
That kinda thing it used to take a long time to.
Straighten out so you're -- your case Shiller finds home prices rising five and a half percent.
I'm curious if the housing market is benefiting somewhat of -- -- filling prophecy we're coming into the peak buying season right at this during times are people gonna -- -- rush in before prices perhaps.
Nearly start taking off next here what's your forecast for the spring summer months and into next year.
The noble -- V spots I mean.
You know Phoenix.
Well we looked at the numbers -- sort of scratch your head at a time exist for real what's -- -- we checked the numbers and that kind of thing.
There -- the spots New York in the northeast -- in new York at the only city that had a decline in prices.
New York and is the holding of picture -- area to the region is heavily dependent on financial services and.
Financial services like everything else -- times in the recession the recovery is slow.
I'll Wall Street has fewer jobs now than it did 56 years ago all of that something of a drag laptop of that.
Could financial services a lot of compensation is in bonuses.
People worried about the bonuses that much or not by they found a percent cents thank you so much David Blitzer for like -- -- in the afternoon.
