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Follow up -- all of this -- call you can forget about a housing recovery.
Overall if you're a young person check out these numbers the homeownership rate for millennial down 7%.
Numbers from 2006 to 2011.
-- declined more than double the national average so Anthony Sanders does -- a professor.
At George Mason university system it's good to see you once again.
How how big a deal is the decline for young people specifically.
The -- what's the effect on the overall so called recovery in housing of that.
Well -- let me start off by saying welcome to the united states of Europe Britain did in Germany people wait until -- forty -- fifty to buy their first home so we're actually trending towards the European model and that's -- the millennial -- -- -- are not getting into the housing market -- -- say here's -- homeownership rate declined by the way.
Up by age group it's -- take a look at it you could see Tony's point.
Illustrated here but so they're not getting in -- people are not buying house is -- much later in life OK European model.
That model what's the overall effect.
Well I would definitely since -- bad model but it and for the housing market recovery is a hole.
This means that we are not having -- college graduates are high school graduates.
Going to the labor force and buying homes were still relying heavily on investors many foreign.
Turkish young Russians do supporter housing market this is not the housing market we envision this is again.
More investor fueled.
Now can we -- a recovery though and housing that is fueled by those investors I would think it's a big cities.
In this one as an example in New York received a lot of it.
We've done stories about.
What the -- -- Miami for example or just talk about man in a different light a few minutes ago but we've done stories about.
The effect of foreign buyers of some of these markets -- you're right it is helping to drive things along.
That can't be sustained.
Now it can't be sustained because eventually the foreign investors go away once the yields aren't there anymore for them.
But back out on the market right and what we have left in the background not nothing that's a good -- a couple of things there that wanna talk about that's the -- so interest rates.
We have started to see and this is a story here last month to the rates go up -- what's your outlook offer that and I asked about today's number real quick.
Well I agree who have in like Doug Duncan Fannie -- I think rates are gonna go a police -- -- hundred basis points over the next year.
-- particularly near the end of the year and that will put downward pressure on the housing market now.
If you're young let's even if we even bigger downward pressure on the market and those foreign buyers -- go somewhere else to see higher interest rates full point higher they are now they'll find -- where where.
It's more favorable -- investors that the point apps yeah absolutely.
And today's number final thing to -- been mentioned it in in -- detail but existing home sales were down.
We know that it is I guess worth pointing out that down from Bob what -- -- -- high -- -- pulling back a little bit -- the homebuilding stocks off today would you make of the number today.
Well would you look at it's we're back to 1999 to 2001 levels so -- it's down a little bit has -- rising like crazy since 2000 and but only back to 1999 -- -- and so the housing market it's breaking a long time to recover and maybe this might be the long term average.
We might not see any more real races is a new normal type a phrase from Tony Sanders today is what we're proud to have -- right -- it's always good to see you.
And we'll -- -- against him thanks for coming up but I column -- tell -- actually like all right PD that all they got data.
Where you draw.
I wish her right now of course but -- were.
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