Home Prices Climbing

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And since last year but is the trend sustainable joining me now with all things thousand Chile is chief economist -- cocoa.

-- welcome back to show it's always great to have you here.

He'll even talking about rising prices for some -- we predicted over a year ago the prices we're gonna climb out of the basement and they certainly done that I think your numbers are up 7%.

A year over year.

But where the prices rising the most.

Thanks army backed -- prices are rising the most in places like Phoenix Las Vegas -- Oakland.

But prices are rising in ninety of the hundred largest -- so across the country people are seeing prices increase.

Case Shiller is saying these are the best gains of more than six years -- now we've been waiting a long time for this.

I want to talk a little bit of -- made some interesting comments about Phoenix Vegas and Detroit saying that they're gains are not sustainable what do you mean.

In some markets like that like -- you mentioned Phoenix Vegas Detroit.

-- big price increases but without strong job growth and with the risk of some foreclosure still to come.

In other markets though like San Francisco Seattle Denver we're seeing big price increases alongside strong job growth and -- vacancy rates.

Other well I know the market that you know look housing.

And job growth go hand in hand job growth is what fuels.

New housing purchases so that is very good news but I -- talk for a second about sustainability.

Of the trend because let's face it housing inventory inventories are in the toilet.

Zillow said there with 17%.

Drop in housing inventories year over year.

That is a huge move.

And he can't -- I think this is what is in part fueling the the increase in prices because there's so few houses to -- from naturally the prices go up.

So -- you think it's sustainable.

So in fact inventories are down more than 50% in some markets like many -- California.

Right now we're trapped an inventory spiral where higher prices are causing sellers to hold off from -- know what to sell the bottom.

But rising prices will eventually.

In the next year to cause well people -- sell.

General outline what he says the only reason their houses aren't on the market hasn't gone -- on the market because people are underwater.

They're afraid that they can't get out from under that mortgage -- that's the real reason isn't there a huge overhang of potential properties that actually could come on the market.

Late this year early next overwhelm prices and send them back down.

That's a risk but only in a very few markets.

Right now most of the country is actually through most of its foreclosure crisis but in places where the foreclosure process takes a lot longer.

That's where they're still -- risk that overhang that shall we talk for -- -- market.

Talk about foreclosure though I was talking about people who are under water.

And they really can't get out from under that house they can't get a new loan they can't sell their house -- they're gonna owe money if they do so they're waiting.

They're they're quietly waiting and these are the people -- been paying that mortgage every -- haven't taken advantage of any of the government's programs.

And and when they finally do get to a point where they can unload this -- let me tell yeah.

It's gonna swap the market with inventory and we could have another doubling down without another down tick.

On prices or or maybe just a slowdown in the market generally.

In most of the country though inventories now so tight.

That if people get back above water decide -- the homes on the market for a lot of buyers -- to be a relief because it will mean more inventory choose from -- a long way off.

From having too much inventory swamp the market like we saw few years ago.

From Euro lipstick God's -- my friend thank you so much for.

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Home Prices Climbing

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