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Going up but first our top story tonight.
The best news an American homeowners for more than six years listen to this.
Our nation's real estate market is seeing a real recovery home prices single largest gain since August of 2006 right before the housing bust.
The index is up five and a half percent year over year and if that doesn't convince you.
The national association of homebuilders reported in the recovery has spread to more than 70% of 361.
US metro markets that's a big deal.
Now some of -- cities they got hit hardest by the housing bust Las Vegas Phoenix Seattle they're all coming back.
Still some of the business are saying -- -- should not be looked at as an investment.
But I beg to differ let's see what my next guest says real estate mogul or corporate.
Founder of the Corcoran Group Barbara always great to have you on the -- -- I -- -- talking about is comments from Yale economist Bob Shiller he says he can't think of your house is an investment he says there would be like.
-- your car into the bride for twenty years coming back into decades and decades and say I'm gonna sell it to make a lot of money on it.
What I have to say that in addition to -- also said which I heard those comments you better off renting now than buying what do you I think he's out of his mind and it's the worst advice you could possibly give to anyone out in the marketplace.
First off for everyone who's out there -- those ransom gonna go up like crazy because so much of the housing stock.
That was converted to rentals by investors is going to be yanked out of the market now that prices have return they gonna be flipped and people gonna raise so's France -- there's no security there.
But most importantly.
If I can just say one thing he does have an understanding of that I -- I live it needed breather every day of the last thirty years is an emotional card people have toward owning where they live.
Ask anyone if they had the cash would you rather own or would you rather pay the rental landlord and people really -- not only -- they live -- that is not a trend that's human nature and that ain't going no.
But let's talk about dollars and cents you talk about human nature but am -- gonna make money in that house that's what people are concerned about and look I think people look back at the last six years.
And what they say as well the past is prologue my friend these these housing prices are not gonna go up.
Now it's just not the case in fact the mood has totally switched in the country.
Almost every -- the service asked if that is surveyed active believes it gonna pay more for that house a year from now on guess what.
-- all right is a tremendous fear in the market place right now that a I don't I am gonna pay more later.
And -- right again and so these -- emotional cars up pushing the buttons -- -- making housing prices go up by 5% and you couple that with cheap money.
Plus the fact that hasn't still 30% cheaper than they were five years ago I mean why -- you -- buy a house right now.
Well you know -- -- interstate at course.
A Yale economist.
He doesn't know it's much as people in the marketplace regular Americans who are out there buying and selling each and every day I want talked yet though -- -- inventory -- because it's tight.
When is one of the big things that's been promoting these really high selling prices there's not a ton of inventory out there.
Its second change what's gonna happen to prices when inventory finally does come at.
Full -- let me tell you something the inventory is not going improve the more activity we have a few of the house we have to sell.
And is nothing that fuels a buyer more.
Than when they lose -- house they get on to another buyer who did a higher price and that's a strict result of the shortage of inventory.
That's not gonna get better that's gonna get worse -- -- to choose from.
-- -- -- -- You know when I talk to stock traders I say maybe you're talking your book a little bit re talking your book you're in real estate even in real estate for thirty years you love it.
All people in real estate suggests -- is an optimistic.
-- overstating the case here.
No I don't feel so I feel like -- an optimist you have to remember that I.
Lives through three blood letting real estate recessions and had to keep things going.
All right all the chips are down I've lived it and you know what I have learned that -- say it's very slow.
To unwind it's taken us five years -- boy once it starts spinning it's -- -- as people don't know what hit them and from that experience I have to say this will be no different.
We you know that's my gut tells me that people -- -- anything.
Well my gut tells me the people are gonna be coming to me and twelve much and thank.
-- -- so sad I didn't buys something I wish I had that was the perfect opera can't and shouldn't be very happy sitting in the rental -- -- look a little bit more rent and let me Bob -- about the rest of us.
Hello about we have rates at 3.5 9% after the thirty year fixed.
People are complaining think they rates are going up but compare that with rates over time.
-- -- -- I think the best thing that would really kicked this market in a double kick would be if rates to jump up by a whole percentage point -- -- -- But all of a sudden the deadline on low prices over the in the deadlock in cheap money is over we see what that -- but I don't really think anybody's expecting to do that some might value.
I don't think people -- let's talk about individual market -- you have a view on some cities what do you like -- island of New York City and that I have to say I'm totally biased you shouldn't listen to me at all it's great.
-- -- -- Elvis I mean my livelihood here but what I love about New York City and all of the cities that are really international cities are not that many in the United States also San Francisco LA a bit.
What I love about it is is always -- new population people moving to turn it churn so -- the Japanese losing a yen value and they move at the Chinese move in and take there units of the hands is always someone -- who haven't.
Coming you know you see that -- all over the country Agassi at Florida lot of foreigners buying in Florida an upfront in Moscow yes you -- that we're starting to see you know.
Investors coming in with all cash foreigners coming in with all cash.
-- -- different first time buyers even people who wanted to just trade up it's more difficult to play because of that.
And you know who is a person who should be moving more than even the first time buyer for the international person more than anyone as a person who wants to trade up because if you take.
Lest we -- home today and you get the bigger home at a steep discount the same discount.
Go ahead of the game and you people -- -- stalling when they should be.
Name three states we don't have much time that you like now Seattle Las Vegas of your investor -- hardly anything left in first and foremost -- city my home can.
IRA it's so -- -- you Barbara -- forgot what I appreciate it.
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