Fox Business
Expand
Browse All Video
Watch Live

You're watching...

End Users Still Not Buying Into Housing Market?

Details

  • Description

    Prudential Douglas Elliman Vice Chairman Dolly Lenz on the outlook for real estate.

  • Duration 3:20
  • Date

Clips

Also in this playlist...

Real Estate

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Well as the housing recovery for real last week former Reagan budget director David Stockman was here.

He said -- -- at the start of another housing bubble and here's a reason he gave for the rise in prices take a look.

That is basically speculative money it is not.

Owner occupied buyers.

Movie and for the long haul.

That's why he says were in the midst of a bubble now.

On the total opposite side yesterday I had an opportunity to speak -- Gary Cohn president and chief operating officer Goldman Sachs.

He said about housing this.

I think hasn't Beckham and the good news about housing as we can outsource we need to build it here in the United States and that's a great asset for our economy.

A great asset so what is really happening who's buying properties is this recovery sustainable we've got somebody with her finger right on the pulse of the market Dolly -- Prudential Douglas element vice chairman which side do you agree with.

Phone without a question -- stockman.

And users are not buying the houses that are being absorbed so if it's not end users and it's investors some time soon it's gonna come back in the pipeline.

So we're not over yet you know when it's -- users.

Then you'll know it's a real recovery so your saying that the housing rights stockman you're saying that the house that the right is rising prices and housing is all pumped up.

By investors that are alert looking for quick turnaround.

That plus absorption so it's both -- -- both pricing and absorption.

Is investor are you saying that those beautiful properties that you're selling in Manhattan are simply to people -- up because you're dealing one on one with these people.

The people are gonna flip if they're not moving in -- living there some people gonna -- that some people are just investors have been in -- rented out for awhile some people parking money.

All kinds of reasons but across the country.

It's hedge funds it's private equity firms its people making an investment and property which is good is better than no investment in property.

But it's not as good as an end user.

But it has been enough to stimulate the home -- market we just saw today I don't know if we could put up the charts of the home builders but how 1110%.

Rises in the stock price of homebuilders and this has been going on for months now but -- also hearing all the good news right it's all this flurry of good news.

So we hear Gary Cohn you hear this when you hear that they just building homes based on their own capital are based on a real market real demand for those home.

-- would affect the stock is up doesn't mean they're building so many homes.

Right it just means the stock is up so we'll have to see how many homes actually build and what they use their money for and whose money it is Ara Hovnanian was here the other day on the -- -- show and he set -- sometimes we are selling these houses before -- even put any stakes in the ground yes I -- I saw that in many it you know you're you're putting apartments homes on the market in just weeks staring contract well there -- parts of the market -- the very high and part of the market.

These are generally end users in -- that part of the market is very good.

Some talking about the rest of the market the average market the guy who actually needs a mortgage in order to close on the property.

That's not what.

We're talking Dolly -- is talk -- average market that starts at about twenty million dollars.

Home which is just -- to make that clear you deal and high end switchers say this isn't just the high end this is all across exactly.

Even -- -- lands.

Thank you -- saying thank -- And I was that hopeful news for the housing market dollar moves in the housing market good to see them have you seen the latest --

Load More