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Historically low interest rates home sales up double digits.
New home construction breaking the one million mark in -- for the first time since June of 2008.
Home prices up eight point 3% year over year the -- news is good.
Really good but is it to -- I think what we're seeing is is it that a fundamental improvement and -- both in terms of activity.
And in terms of prices.
That's Josh Fineman the chief global economist at Georgia asset and wealth management.
I think it's been particularly on the price side it's probably -- -- -- a faster than than people had anticipated myself included.
So there could be a period where it slows down below -- levels off you know.
-- necessarily extrapolate the pace of price appreciation we've seen over the last six months forward.
But I think that you know which it it's not like things have gotten overdone.
He says the recovery is real.
And right now we're going through a period where the housing market is getting real -- We're not gonna go back to the to the rate of home ownership that we got two at the peak of the -- I think that was artificially inflated.
Five by just overly exuberant landing conditions and borrowing conditions but there's a long way to go from where are out -- there.
So I think we can see improvement along all of those dimensions.
For another couple years.
And still not get back to 22 where we -- A recent report from the national association of real hitters so is the housing realignment it's happening fast.
The national median single family home price has risen significantly.
With the average in the first quarter of 2013.
At a 176600.
Up eleven point 3%.
From a 158600.
In the first quarter of 2012.
Prices are rising but it is still well below the bubble a level prices prices are a much more attractive today -- five years ago when there was the bubble.
-- -- The people who are buying are buying what all cash or with substantial down payment which lessens the chance future default.
And -- You have a very nice development not -- loose underwriting standards -- ever want to get mortgages so this recovery is gin you wine for real.
Yet as prices increase inventory on existing homes is tightening.
In the first quarter of 2012.
2.3 two million homes -- on the market but now in 2013.
Their only one point 93 million homes available for sale good news for the housing market but less options for buyers.
For people looking to buy this is probably a better time to buy -- next year a year from now prices will be higher and mortgage rates probably will also be higher.
But the advantage of -- is that you might have more inventory to choose from.
-- is Jud called -- also says home prices are still undervalued by about 7% nationally.
And only nine out of the hundred largest metros are overvalued.
Positive news if you want to take advantage of the market.
If you can get lending.
Beyond the writing stand there has become -- strange and and as a result many of the good renters say someone with a credit score of 700.
Which will be considered very solid.
They are having difficulty obtaining loans and based on our calculation and is about fifteen to 20% -- very good renters.
Who could become successful homeowners yet they are being denied mortgages.
Undervalued houses on the market but -- lending their potential buyers and for potential sellers another double edged sword.
-- says home valuation will increase in the future but if you wanna sell quickly there's little competition with inventory tight.
So he's -- now you can get a good price pretty fast.
Reporting New York Christine -- Scotty Fox Business.
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