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Not -- linebacker -- guys.
I mean that's been in the medical one but I digress housing might not be off to the races but without a doubt it is off the -- and the latest news and home prices court.
Their biggest annual gain of more than seven years proves that but even with above why do present year over year advance.
The cost of the home is still more than -- -- -- less than it was back in 2006.
Which is -- most analysts say housing certainly not Arab but that does not mean that housing is anywhere near -- hot.
-- -- -- -- today whether housing bubble is that mortgage banking solutions.
He says it is and get ready for -- since you've invested CO -- to market who says it is and so just calm down.
All right so.
David let's get your read on why you're so -- This is a bubble.
The number one you have to look at things in this whole housing industry from historical perspective.
-- we have history that tells us number one -- prices are going up and when they go up this quickly at this rate especially in certain geographic markets.
You have a global warming and then you have to look at the fundamentals that are underpinning this market.
-- -- what we look at is what has taken out that the housing supply that was there there was flooding the market driving prices down.
Investors took out that shortage of that supply integrated in certain markets not all markets certain market -- created a housing shortage.
And what's the key to investing.
Buy low sell high.
They bought at the lowest part the market now we're getting some good appreciation.
And I think it's reasonable to anticipate at least begin to look for signs win of the investors that are in the market.
Good to start selling and when they do.
We were gonna see this thing begin to -- to possibly end the bubble the bubble could pop and then you cause interest rates going up as they are suddenly now.
You're gonna see another factor another needle going at that bubble and so I'm were putting out a word of caution.
Parents and I love him to death but he's bombing me out please say everything you said is wrong.
I there's so many points that you made that I just completely 100% to figure it -- ball.
This was strictly a market cycle -- -- at the lowest point of realistic that we have -- been her price and it came back and he came back strong and it was going to.
Because -- -- opportunity.
And even though its investors and there are a lot of institutional investors -- investors are very Smart they're sadly just like the banks.
They're not gonna dump their inventory on the market all at once.
They're going to trickle out when they decide to -- -- out those funds which I was a power to have.
But for cash flow they did not -- to turn around and south so even though I do route one thing he's said is that you basically you make your money on the -- And you collected on the south.
Nobody's trying to sell right now.
-- and just a further point out that there is no bubble there was over a 150000.
Foreclosures hit the market.
Just in the month of may.
Foreclosures are not done.
In New Jersey they haven't even begun to hit the market there's so much inventory out there that is balancing this market that there's no way that we're in about.
All right so that's an -- here a lot David that there is still a lot of supply out there it's gone down and and declined rapidly but.
It is still a lot of unsold homes on what -- make event.
Well number one that is true but when investors and I'm not saying investors I agree with the -- -- -- -- -- we're not received.
Investors massively just -- -- inventory that be foolish.
They're smarter than that.
But if we see foreclosures continue to stay at these levels and they start adding back the supply these investors are releasing some of those homes back in the market.
To take some gains drop its logical they're going to they're going to -- Yeah.
Know what will happen is that we will have a stable economy because there won't be bidding -- bidding up as prices we will have a real market price -- That are valuable and the bottom line that we have to remember is that bad bubble that everybody wants to talk about real estate was traded through the financing and a liar loans and having -- -- And getting alone it was being created through that prices there's still 30% cash buyers in this market.
But you know attended the wanting to David's point and I Tennessee you know like is that I -- but I didn't see in -- and hot markets there.
They're flipping properties again not to the degree they were certainly during that housing boom.
But sight unseen buying -- high rise Condo units and then.
Selling them to the next highest bidder with -- apparently without even walking in -- enough.
Hot or not not I don't know how -- that is just the fact that it's happening again probably not to the -- it once did.
Does give me pause does it give you -- I think that that's an absolutely bullish investment I think that you have to make wise decisions when you invest in -- -- that you have to know what you're investing it.
Why you're investing in it and have an exit strategy even if it's long term if you are not boots on the ground you should not be flipping you should be buying and holding for cash -- our population is up.
And our households are down we don't even have enough homes -- that's why so many people are renting I think the flipping game is bullish right now.
Sorry but not indicative of -- so what do you think of that David that the fraught that you fear is not really out there because there is this pent up demand.
And -- your point the banks you know might have been a -- might have looser standards and they dead it's not as if they're Willy Nilly lending to everyone so what -- you -- Though that it's after the case they're now will we're we're suggesting the crazy -- in your sign your loan programs -- we saw grass I collapse Alito those are gone.
So we are -- more of a stable financing market but we're -- -- economics and it's one of those things I hope to -- -- -- right but -- history.
Everything is cyclical and we've got to start looking at the fundamentals that are driving -- David by that point I mean if it's a book I mean this is -- -- -- long cycle of depressed real -- we've been looking at.
And that we're due for a comeback.
Absolutely we're due for a comeback but you look at the -- some markets are coming back by the way -- -- -- folks up in Indianapolis and some other parts of the market.
That is not they're gonna what recovery what bubble we love -- learn something happened.
So he's very regional -- so when -- -- -- this argument I have many viewers nationwide.
And is very different when you look at the regional markets and how you have to look at this in a regional construct.
So I agreeing with many things at -- says other then -- just saying.
It's a cycle we're in the cycle we've got to recognize what are the fundamentals that are gonna change that interest rates are going up.
Buyers that are -- come off the -- are buying that's good.
But I'm suggesting that may be if you're looking at this is a short term deal to get into the housing market that's not the right.
Do you point did you do you look at this as a buy and hold for a long term where the investor our first time home buyer or move up buyer.
Tanya final I could (%expletive) I could never guy couldn't agree with them marked absent I think we agree more than -- Yeah and we actually -- vote early -- -- and I -- -- tell -- -- in my Hubble as a result but guys thank you both very very much do the things you see me.
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