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National Association of Realtors Chief Economist Lawrence Yun on the housing recovery and issues impacting the housing market.
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Business we've been focusing on the real estate story throughout the day as the housing market recovers -- spotlighting homes for sale all across the country to give.
To give you an idea of what's happening in various parts of the country including.
-- some very high end homes.
Taking a look at New York City which seems to have nothing but high priced properties.
-- working at a two point.
Four million dollar property Victor -- at 19100.
Square foot apartment.
And from put -- percent that still the monthly mortgage payment.
Runs about 7000 dollars plus 15100.
In monthly property taxes properties of all prices in places -- my next guest.
Who expects the housing market to make a strong contribution to economic growth this year.
Joining us with his outlook is -- -- -- Who -- chief economist senior vice president research for the National Association.
Of -- good to have you with us.
Good evening this this market looks like it's really recovering.
In -- should give us a sense.
As best you can just how strong it is nationwide.
The strength of the recovery is much stronger -- many people anticipated.
And who we are dead basically seeing the housing start up roughly 25% from one year before.
And I think that Ford 23 -- he could be even a bigger increase up because so we are encountering some housing shortage.
Home sales are running roughly 10% higher from one year before.
And -- inventory level has come down to 813 year low levels.
And because of the -- of the -- draw down -- inventory.
One is seeing a consistent price increases and these price increases have added one trillion dollars to household wealth.
-- -- -- -- -- Adding a trillion dollars or so ago always ago in this in this marketeers to get -- back to.
Well 2000 pre 2008 levels.
The the idea that this.
It is that we're seeing this resurgence though.
Is it we you talk about low inventories -- would we have low inventories across all price ranges.
Or is it isolated.
It is -- predominantly in the lower price range because what has happened is that given the -- very low yield long cash return money sitting at the bank of people buying bonds many of the investors have turned towards a rental income.
And -- rental income they're looking for that's more size home.
A mobile bargain price so it is -- more open acute shortage of inventory on the lower price trends on the upper end.
-- you market was a buyer's market one year ago but now he's roughly in balance.
But these primarily on the lower price and -- investors have come in all cash or they're not even -- -- the mortgage they're coming and all cash.
Up picking up -- -- scooping up those properties.
Now all cash.
It works better at -- if you will look at top into the Margaret -- one expects that kind of money.
But.
Forum for those who were looking for homes at the lower end of the market.
They need credit and they and that credit we keep hearing stories of how.
Are constricted still.
Credit is for those who needed due to buy -- You are absolutely right.
You one looks at the credit scores of those what being approval on a long it is so much higher.
Then even on the normal -- let's discount the bubble -- -- which was lax underwriting.
Oh or even -- document -- loans but compared to say ten years ago normal underwriting standards.
Today the credit score requirement is much tighter.
And is somewhat puzzling given the huge cash reserve -- the banking industry is holding onto.
Now they are saying that there's too much lawsuit.
Regulatory uncertainty that is holding back some of the lending potential.
But you have many potentially good renters financially qualified renters.
Who could become homeowner and participate in this health will.
Build up yet they are being denied a mortgage and read -- you -- investors who already own a home.
Up -- scooping up those up bargain properties.
Weren't -- and thanks for being with us we appreciate you --
