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Carrington Mortgage Holdings Executive V.P. Rick Sharga on whether it is a good time to buy a home.
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-- Are a prominent housing economists onto a different topic housing he's saying tonight that millions of Americans have.
The wrong idea about housing Robert Shiller the Yale economist telling FBN in many cases people are better off renting and buying.
He also says housing is not an investment.
And the price gains was on the last decade might take generations to happen again so much of the American during.
Rich target executive vice president of Carrington mortgage holdings joins me now always great to see you Rick.
-- -- -- -- I really believe -- a -- bear this man never sees anything positive in the housing market ever.
How do elitist comments do you agree with them.
I was actually quite a bit surprised to see the comments.
I agree conductor -- tends to be very bearish.
But but people with money looking to invest are voting completely differently -- what doctor -- is talking about her.
We're seeing millions and millions of dollars of money coming in from offshore.
Looking -- US real estate is being safe investment and looking to buy physical assets as opposed to investing and paper.
Since -- just in terms of strict investment capability -- investment interest.
Housing continues to be pretty hot topic.
It's a pretty hot topic but I -- There even a lot of people out there who were eager to get into the housing market were never able to.
They hear something like that they stay on the sidelines because you know what.
All they can remember is the last four years of the housing market and it's all bad news what would you say to those people.
I would say it's time to get back into the water -- because because they're fine right now we're -- looking at.
Home prices that are still way way off the peaks -- even with the increases we've looked at their back about 2003 levels financing has never been more affordable.
-- end and if you're looking to to buy a place to live in almost every major metropolitan area in the country right now.
It's actually cheaper to pay a mortgage than it is to rent.
So so this is one of those cycles where you're getting in to to that property near the bottom.
And there are still economic advantages for people to buy houses we're doctor -- is probably right.
Is is people who -- looking for houses to live in really should be looking first for place to live rather than their best financial investment.
Still in the long run house tends not to be that bad investment.
Right especially in the long run I think Federal Reserve -- found that.
Biggest -- of money -- cash that people have stored up over their lifetimes typically in our house.
There -- thing though I agree with Jimmy said -- Schiller said that the 2000 bubble was a -- And I agree with that it was frothy it was silly and -- got out of control but let's point out some of the positive numbers here.
Sales prices up five point 5% according to case Shiller November over November.
That was good news and the national association of homebuilders they say the recoveries spread to 70%.
Of metro areas in this country think about that 70% I mean.
Here we are -- the cost of what could be another bound in the housing market with interest rates at Lowe's.
And people are still scared to get him.
Well what we look a couple things if you're looking at housing is an investment you really need to be looking at it as an investor not as somebody's gonna live in the property.
A we're gonna see even more demand for rental properties than than we have in the last few years as household demographics.
Explode.
So right now to be able to buy a house at a relatively low price with very low financing.
I'm be able to find a -- is a very attractive opportunity for an individual investor who understands what's going on his or her local market.
But but you're right that the -- this we saw early in the decade of the two -- really led to the downfall we've seen over the last few years and both of those were aberrations if you look at housing.
Over the long term and in look at the numbers -- I Berkeley.
It typically you typically goes up our -- thanks for coming on tonight it's always great to see you.
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