Fox Business
Expand
Browse All Video
Watch Live

You're watching...

D.C. Housing Sales on Fire

Details

  • Description

    George Mason Professor of Finance Anthony Sanders weighs in on real estate in Washington D.C.

  • Duration 3:49
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Take you down the -- just -- -- from New Jersey -- nation's capital and the next guest says DC's housing market is hotter.

Then Mercury to would be afraid Anthony Sanders is professor of finance.

Mason university.

We'll have this sounds hardly tried but how hot into the didn't think.

Well that's very hot I wouldn't call the sweet spot but what what what I would say about this vegan is that I call this -- low -- -- recovery.

This is really heavily government driven heavily foreclosure driven heavily flipper driven.

There are some actually people coming into the market the part of the reason we're seeing this flood of people market.

Is that the competition.

From like EB five immigration visas which doubled last year.

Was this huge we have a lot of competition from other countries.

Wealthy investors.

It's no longer give -- -- Poor your tired your poor your huddled masses is -- -- -- -- a million bucks an -- and by housing in the United States or multifamily.

And that's helping to propel the house rise in prices -- does that leave the traditional buyer out in the cold.

Says yes that this is not your return your father's Oldsmobile those -- -- used to say this is not a traditional homeowner recovery this is an investor recovery and yes it is harming consumers trying to get in the market.

Because now again we're doing the same thing housing affordability went way up -- Bernanke boy I'm not -- -- Push interest rates so -- we have mortgage rates on what's that there -- real below.

FHA is this very active in the market.

And then but what's it doing to new first time home buyers were getting back -- that same thing where we say.

In defense of affordable housing we're gonna start making prices -- -- 78% a year ago it.

It shouldn't know buyer at the cause of the availability of that they take credit -- and half percent down love and that.

The cause of the -- near record low mortgage rates to -- cause.

You can still get reasonably priced properties in many places she and if you're worried about inflation nothing better than borrowing money and buying an asset -- will appreciate.

Should people start to think about -- whether it's first time or whether you can.

May -- sell the home that your -- Well I know I did us without bought homes and in and then had compete on every single property I bid on with multiple offers.

I -- that's what whatever sequestration.

Incumbents have heralded as those that hitting -- is we thought but eventual little bit.

But I think it is just the thing it did that it as as Bob Shiller when your frequent guests always talks about animal spirits -- behavior.

We are seeing people jumping into the market more because.

The investors are pushing the actions so much now we're seeing actually traditional buyers coming back -- right but again inventories are still friends that don't.

Don't forget about that.

Right -- I was thinking it today I don't know if it's a good thing that they -- spirits have been reignited -- whether it's a bad thing that we so quickly get back to the bubble meant how okay that -- this -- this hard -- I don't know if it's good or bad but if real estate prices go up -- good.

I'm not necessarily a man if -- wake -- -- -- kind of a stable zone.

And where we had you know existing home sales mortgage applications are kind of the sustainable levels but we see eight core logic I think had 8%.

You're every year prices last year and -- going -- no not this again right but again it's not.

Mortgage related mortgage purchase applications -- -- -- increasing that much -- -- mostly investors mostly immigrants.

And kitty thank you so much and I'll leave you with this stat a Phoenix double digit price increase -- seven straight months.

I was wanna -- by that and -- thank you so much they say that Anthony say thanks they get down and they say.

Load More