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Home Prices on the Rise

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    Financial analyst Vera Gibbons on the trends to watch in the housing market in the year ahead.

  • Duration 5:17
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From -- it.

To New York homes are selling across the country but if you're interested in a change of pace.

Here's some key factors you should know we make the -- to buy sell or rent.

On this we get to financial analyst -- yeah hello real -- trend of equity thirteen -- first -- -- home prices up the good -- are going.

-- up right this has been the trend everywhere even New York nationally they've been going up you know over the past several quarters -- thirty year were up you know five point 9% expect the governor of the 3.3 percent this year so that's a good thing I think most of us -- look back 120 -- Wednesday.

That's near their prices bottom.

An hour in.

Recovering that.

Some areas that have been so hot like if you look at Phoenix Arizona and the case Shiller report double digit gains here -- -- gains month after month after month right there are some areas they're looking.

That's a little -- there's a little less inventory they're now -- because people are snatching up those homes are going very quickly so that sort of drying up to some extent is that because the had just fallen so much during the financial crisis this is just a lot of investors just on ten before it while the going was good ongoing -- and -- -- inventory here though does that actually lead to more sales it should ultimately rights are rising home prices should lead to more inventory.

Because encourages new construction in encourages sellers to actually get off the sidelines.

People have been reluctant to sell obviously because they don't wanna sell the bottom.

So we'll have to see how that all plays out but you know the -- the question I guess going forward is whether prices rise enough.

So that inventory actually bottoms and starts it starts to expand again inventory is at ridiculously low -- -- -- out to -- for our current.

-- down 43% since the summer twenty -- if you -- looking for an apartment.

There's like nothing other -- about the.

Holding back sale to its latest trouble -- in some areas in that -- guess they call lot of this inventory is like.

Did gently used inventory like existing inventory that isn't it foreclosures that have been ripped apart that's right that's neither -- has been the real problem area that hasn't -- America.

I sleeper department of buying New York there is is nothing.

Out there that.

And I like that -- for -- hundred in my area so.

You know in in entering your commitment and -- one thing that should help sales.

Is the rental activity because rents have been going -- Yes that's a good point thing and yet rental income for or if you're at landlord -- in a new.

That has been great -- rental prices have been going up over the past couple of years.

Expected to go up yet again over the next couple of years because you've got exploding household demographics you've got all these kids three to 5000020 and thirty something expected to actually.

Move out of their temporary date for their parents are.

Where they sort of been holding court until things sort of settle.

So and when they get jobs so that's gonna put additional pressure on prices if you look at -- you work in 3000 dollars on average for our.

Ironically that that's you know.

Not great not great so in most major markets right now for the -- analysis and so it makes better financial sense to buying right.

Because -- -- -- rate break -- in breakeven in less than two years in some markets like the Florida market some of those Miami Las Vegas Phoenix based better financial sense.

In sixty metro markets.

By what about to with a credit.

Is done is that still a major problem is if if credit were easier or or work sensible what we see the housing market do what's loosening up a bit.

I mean if you tried by a couple of years ago forget it now -- little bit easier for buyers.

I think our starting got off the sidelines now because they know.

Mortgage rates are starting to rise rental prices are ridiculously high prices are starting to rise so they're becoming a little more eager to jump and as our investors and trade up buyers who have maybe been reluctant to actually get and previously what about foreclosure activity because again -- -- today and the torque on -- also -- -- the credit issue because.

One reason that a lot of these foreclosures haven't been.

Well the haven't been moving as because -- many -- you have to buy all cash and -- to all cash buyer might be tapped out at this point -- investors like those deals right but they've hit they've been sort of becoming a little bit harder to come by the foreclosures -- mean.

Grade at one point because they were so many the prices -- good.

Now the backlog is easing supplies are subjected to drying up a bit supplies are limited -- particularly those -- hot areas and sales are slowing down a bit because.

That's that's where we're at I mean some of the debate.

People have better there to better equity position now because home values have been rising -- seeing as a result.

Fewer bargains for people like you and -- and investors -- not to say there aren't any.

Right because there aren't some of the -- markets Las Vegas Riverside.

Fire and how that -- very very hard.

But it's not like we saw a couple of years ago when you're you know fire sale prices and lots of options and -- scenario you.

And then also.

But all of this to wrap it up more urgent action that a lot all of these things together will force people to get office and get off their but yet again by a threat to give them.

And it starts to feed on itself we started Sudan's South Florida market is mind you going on building and they'll be ten units available and within a week five a -- gone.

And and it gives you that sense of what have you -- -- -- I have to I have to -- a lot of it -- conference rights are right and the confidence comes back to investors and trade up buyers alike and buyers again have been sitting on the -- reluctant to do anything -- I think that that kind of activity would support the continued acceleration overseeing currently enhancing their we'll see you later our background I don't and I bring it -- I'm really great Vera Gibbons thank you so much.

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