Is it a Good Time to Consider Buying a Home?
FBN’s Charles Payne on concerns facing potential homebuyers about the housing market.
- Duration 6:59
- Date May 31, 2011
FBN’s Charles Payne on concerns facing potential homebuyers about the housing market.
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King you were Charles Davies with this now contributor and host Joe the Fox Business Network in the CE OW street.
Dot com always to deceive or else Ghana now do in the 2 o'clock -- in the afternoon with the Shibani Joshi has happened on a lot of fun lot of -- yeah and you could see him every day on thorny and company which follows the show.
At 9:20 eastern -- so before.
We get to -- morning.
Your friend was in here earlier this of course is always worked up about something in today's topic -- to be the front cover of the front page story the New York Times which is about housing we're gonna get these home price numbers at the top of the hour from Case Shiller.
The time saying house price is set to hit another -- and more people because of the wheat market are deciding to rent.
So the case the argument now is whether this.
Dream of homeownership in the United States has been here for so many years is kind of either turning into a nightmare we're just going away completely.
-- -- -- Was still play a nightmare for a lot of people who got in and -- last five or six years but.
I don't think it's going the way I do believe people are really very very nervous about you know getting a house now whether the time is right people think they -- -- the bottom and anything whether it's the stock market has the housing market.
I -- guarantee a lot of people were contemplating buying a house are probably the paying more.
The less because they'll wait one or two years and you know later than they probably should have pulled the trigger but.
Now having said that.
It's also tougher than on the home to you know we were pretty screaming.
About these are evil -- -- And and and -- -- awful ways and we got all these different you know regulations in place.
This a consequence of that -- -- for a lot of people were really credit worthy to even get a loan to buy house right now so it's a tough situation what.
Would you tell us and nest year your other job so to speak giving people advice financial advice you can someone comes to insist Charles.
I you know I sold my house -- there's a guy in the article sold -- house in August of 06 -- at the top of the market and has been renting ever since.
And I guess the apple logic as well prices might go down even more so -- and I by now if you have some of -- -- decent.
-- been renting I'm thinking about it maybe I don't need don't know -- -- just keep -- firm.
Who knows how long would you tell them -- you -- you should think about buying a house or or -- just say no you're you're on -- something.
I would actually tell on the consider buying a house is some point and I think -- to very common sense that you can drive the bargain if you don't get the pricing you want you can always walk away.
And but you wouldn't go into looking at flippant a year from -- -- six months from now but I still think it is this sort of the cornerstone of the American dream.
I think we'll look back 510 years from now Tony is announcing tally in a sort of bought a couple of houses in on the Texas once you have.
Yeah I definitely think it's a much better deal than the emirates and although some cities if you just go strictly by the numbers renting is still smarter.
-- although that's starting to change.
Lot of this is psychological or at least I think it is we're gonna talk to Bob -- at 11 o'clock today after these Case Shiller numbers come out -- kind of what he gets into a lot of that to the way people psychologically C markets and how they feel about things.
And you wonder how this cycle.
Is going to be broken where people thank.
And -- evidence has been have been there so far but people just think -- why should I buy because the price is gonna go down what's gonna change that is almost a trigger in people's -- psychologically this is now's the time now's the bottom I'm getting in.
-- it's a fantastic point -- because who were experiencing right now is a classic death spiral yeah you know people who took the bait for the government credits they grant credits -- down on their houses bet big -- you're still losing money.
So you know I think a lot of -- may have to do with the jobs numbers the overall jobs number the overall economy.
That their -- keynote convention that role -- -- epiphany.
I'm not sure exactly where comes from but you're absolutely right we're right now -- -- prime example of a death spiral.
Of why people fear -- Great Recession to things like that because people think the price is gonna go lower and -- in effect it's sort of a self fulfilling prophecy.
And we're in an economy it's -- it's funny when you look at.
-- an economy -- this is the right way to characterize -- that if it's gonna get better it's getting better because it's propped up for one reason or another look at the stock market for this morning for example it's up.
It looks like it's gonna be way up.
Who knows after this number comes out if something changes or whatever the case may be by 930 but it looks like we'll open -- or up 96 points right now -- Dow futures a lot of that's because people are assuming the Greeks are gonna get another.
-- -- housing had improved or the thought was it was gonna improve because things like that tax credit where they are -- to take things like that away.
Well the housing market doesn't look so good anymore want to take the idea that there's going to be bail -- away and this concerns about restructurings -- defaults the stock market doesn't look so good.
Animal you're right you're right that's one of the reasons I I believe and and people think -- cruel when you say but I I believe in letting things free fall to release ago.
Because I think it's almost cruel and unusual to actually.
Make it a longer term process and it has to be I believe that -- yet the the business cycle would have kicked in already in this country -- naturally established business cycle that's part of capitalism especially American style capitalism.
-- out all the -- entering the short term -- would have been significantly greater.
But I think we'd be well on our way to recovery same thing that with the respect to the stock market I will load the -- that -- the time go from a weak dollar scenario.
To hey you know what these corporate earnings are fantastic.
Valuations are reasonable if not cheap you know that should be the narrative drive in this market.
And I love to see strong dollar strong stock market co existed that's policy think is that possible by the -- it is possible booked -- -- to your point nine that that's not the current psychological atmosphere weren't.
It's because people are.
Thinking about thinks differently people just looking for that you know did you look at the dollar you wanna over the market's -- dollar down.
The market up dollar up market down I mean and that's just -- nutty crazy scenario but a lot of that will change.
And we have a jobs report number on Friday 550000.
Those that are kind of things that sort of sparked that general Tiffany that I think we're all waiting for do you.
Do you feel like.
Do you do you do you get the sense that the economy's improving do you think things are getting better.
I'm generally speaking.
Generally speaking now.
I did I get the feeling that we're bumping along sort of how would get that on right where we have this quote unquote epiphany if it's not really it it has to have I don't know if you know it's -- -- -- the -- be -- to your point oh won't be something that can be manufactured by.
By government programs or any sort of initiatives it's something that's gonna have to be authentic and and I think it's gonna have to come from -- treatment I majored America's got to believe in and fill it.
And I don't think they do right now so how are you then you always find a way it seems like but how is set Charles -- make its money these days -- development that the stock a lot of stocks are doing very well because you know what never I don't think there's ever been -- time and I try -- amateur historian.
Where all of the world's emerging.
Countries -- have been on the march to the degree that they are right now.
And as you know so Whirlpool -- Washing machines and dryers and refrigerators they sell in Brazil gap in it's just amazing where you see I look did we just finished earning season that -- last week who what wal mart's numbers.
You look at these earnings in the companies that they -- they saw a lot of products in Mexico lot of products in China a lot of products and India.
So there is a legitimate there's -- a legitimate opportunities a lot of people making a lot more money in a lot of those cut.