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All right we are in uncharted territory the Dow roaring past 151000 on that solid April jobs -- for but I want to show you one sector because you know if you look at it they think about a lot of analysts have said -- -- maintain.
A job recovery depends.
On housing and here are your Google -- right now let's stocks a couple of names actually in the red right now -- C holdings and and BR but overall another positive day for these.
Builders and the key here for all of these names -- sales.
Our sales gonna go through for these names while the man who knows this runs the company that some 32 billion.
And residential real estate sales through the toughest time 2011 has boss happens to be.
Warren -- let's play event is live in Omaha with him right now -- Well how interesting to have Warren Buffett of course as -- -- above you because when -- are tough.
He doesn't -- he really actually wants to see growth in the company and my next guest pulled it off during the toughest of times.
For decades in the housing industry -- is rob -- here he is the CEO of home services of America we just gave a step that you've done.
You facilitated some 32 billion residential real estate sales that's a stunning number but that was 2011.
-- -- While we're -- about forty billion.
And the way things are going we we think we might hit fifty billion yen.
But that's news I would say that might be breaking news here because it's first on fox business and you're saying you may hit fifteen.
Affiliate that's how good the housing market is right now absolutely -- all the housing market after six years.
Of a tailspin.
Is finally hitting on all cylinders and I think we're we're in for a long term recovery.
Well we've just got an unemployment rate that ticked down very slightly seven point 5%.
Everybody says the jobs market depends on housing market coming back it would not receive the housing market about we haven't seen job.
Are you hiring talking about your particular business well we are hiring.
With the growth comes new job opportunities and so we are hiring.
But you know speaking to the housing industry one of the things that.
It is critical is that new construction has really been dead in the water for the last six years.
At its peak we were building about it.
If we don't build but the industry was building 2000 or two million new homes here.
That pace went down to about 300000.
We're tracking -- in total left just under a million.
A long way to go there is a need for a million and a half new homes per year just to keep up with demand won't let -- bring up inventory because suddenly -- you have investors.
Jumped again and say.
I want to buy -- bulk of course Blackstone has invested heavily.
Who's really driving this recovery there's a belief that it might be.
The private equity guys were fired up homes and started to flip them you see any danger.
Well the private equity how buyers are buying in bulk.
What -- the truth is this we have incredible demand.
You know again if we put things in perspective.
-- in 2000.
There were five minutes -- -- home sales.
Annually it bubbled up at the we dropped down in 2011.
At the bottom.
So four point two million.
And last year we ended up four point seven million existing home sales so.
Bottom line is while things are booming -- a long way from normal a normal market this probably six and a half million existing home sales right now.
The inventory is being -- up by it and it's a seller's market -- it's it's moved a 180 degrees in 24 months from a total buyer's market.
To a total seller's market total seller's market -- -- -- saying that right now.
And then of course we can't ignore the Fed and their role in this giving us unbelievably low interest rates so how could you not -- happened not -- home.
My question -- -- at what point what they eventually to tighten rates because it's got a -- eventually.
Are you concerned that this might derail the entire thing well at least just give it a little -- Well clearly you know we get use to what we've been -- and you know low interest rates we've had low interest rates now.
For 345 years -- the currently the interest rate on the thirty year fixed -- is under three -- Point 4% that's record low.
It's going to be very difficult to move up to five or six or seven and frankly affordability set an all time high.
The people bi monthly mortgage rates in the end.
He worked for Warren Buffett.
I love to know from.
What is the best insight you've ever got from Warren Buffett as a leader.
And as you realize -- -- company went to Berkshire Hathaway.
Well the man is incredible in all ways.
I would have to.
To say the best advice.
You know slow and steady wins the race.
And and to not make a business decision for the wrong reasons.
The has been this quoted as saying that you know about 75%.
Of all mergers acquisitions.
Don't work out.
We have been making acquisitions were growing through mergers and acquisitions and frankly it's always a frightful.
Give them that that the acquisition that we make is not going to be one that took.
Good cultural fit.
Well it keeps you on your -- -- upset about have to live with the quite away Warren Buffett does getting.
Paid for those -- do you think he's just this kind of bulk of popular preacher he's not you know he does get angry -- but.
Brought good to see you thank you think he's so much -- -- here is the CEO phone services of America we are only just beginning live here all day long -- In a Fox Business -- both -- we have taken over at the Hilton Omaha which is.
Shareholders central and CEO central and what I -- CEO's I'm talking about the managers here at Berkshire coming up in the next hour and this is something they've never done.
Berkshire is -- up five K race on Sunday and it is being generated quiet this man Jim Weber who's the CEO of -- running.
When he took over the company.
It was about to implode go bankrupt he would support CEO in two years.
He is running this five K race.
I will be running it thank you very much but I'm going to be doing it for one fund in Boston of course to -- the Boston Marathon victims.
All that -- you've got to hear about what works is doing and how many shoes they expect to sell in just eight hours tomorrow at the shareholder meeting I will send it back to you Cheryl are.
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