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That we got home prices all twelve point 1% in April over the previous April the strongest gain in seven years according to -- -- Look at some individuals say there's very big -- is especially San Francisco up 24%.
In the year -- home prices Phoenix 22%.
Look -- Vegas please up 22%.
And Atlanta 21%.
-- shot he is the co author of the all authority did case Shiller home price index -- joins us now from Connecticut.
I'm characterizing guys -- pretty strong gain 12% year over year you go along without characterizations them.
Yeah it's not boom territory in the early two thousands we saw something in between Tony and 30%.
In a year.
But it is it reminds me of 1998.
At the very beginning of the last boom.
Went home prices -- happened about this rate in people who are just starting to get an inkling that maybe something was coming.
Now we now move -- what we suspected that mortgage rates are gonna go to maybe four and a half percent on thirty year fixed pretty quickly.
That's my speculation on that do you think that won't -- that -- seriously negative impact on the home prices and home body.
But I think we've had an abnormally positive impact.
With a very low mortgage rates they reached a record lows last fall and people react to a record low -- now.
You think -- the mortgage rates can't go down much further than they did they're gonna go up so I better buy them -- -- And they had this opportunity at the same time as if there was a shortage of houses on the market so of course it starts to bring home prices up.
So that's anything now yes yes if he goes to Florida -- sentiment that trends start really starts to slow down doesn't and -- will be a negative impact your site.
That's why -- I think home prices will probably go up for six month -- another year pretty sure.
But beyond that I don't know yeah that they could they could go down -- the same way they did.
It after the 20092010.
Boom which is generated by the home buyer tax credit and then they went down you know all the way down.
If we come back twelve and I have just about 12%.
In April over April the previous year.
How far all week down from where we were -- -- is of -- 06 and early 07.
Well I don't have the exact number it's still something close to 30%.
And in some cities -- mayor closer to 50%.
Some of the cities that are going up fast like Phoenix.
Went down and.
Awful -- fell by more than half.
We via that the people buying now ought not predominantly but investors are very well represented.
You for you find that annual report.
Well that's something that I think is is a concern now because.
These investors don't have the same commitment back in 1998 which I was comparing.
There weren't there how are -- any of these.
And there were some but not like now and I think it was more stable home buyers who would continue living there.
Now they might be at the first item.
Price declines they might be out of there and that that could be a self fulfilling prophecy.
Italian Mecca has all anxious that has to show you know where fallout view as a thinking -- we'll get another 10% gain in prices over the next year.
You certainly might you be doing my -- you expect it -- and it's not.
I think this might be a good time to be a flipper are not doing it and you obviously don't have learned -- -- getting out.
-- -- -- interest.
So we appreciate you being with us hoping come again on the Bonnie and company is on the Fox Business Network thanks for joining us.
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