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Well my guess -- says that there are some positive signs in the housing market and the economy despite reports on declining prices a blade.
Joining me now is Richard Smith he's the CEO of real injury the parent of century -- -- Coldwell Banker Sotheby's and many other prestigious real estate brands across the country.
Great to have you here a pleasure Lou well -- -- it where it's not a lost decade but looking at peak.
Plunges here if you will.
We're back to 2002.
In the minds of those including Robert -- of the case Shiller and.
-- going -- correction that's a good fact and we are at a point where the price value proposition is so compelling.
That the trough in which is arguably 27.
To pay -- your listening to -- at the end of pay housing correction we began this in August 05.
There's been price declines virtually every year since then.
And we're starting to hit the point where it's bouncing around single digits so it's going to be -- -- no one expected any more than that and that's for this year.
And if inventory start shrinking because there's excessive inventory.
Demand will be there and price increases will follow.
And in your business.
You're in the market.
What are you seeing wonder what are your people actually feeling in this market.
-- -- the indexes which are generally -- in Texas and surveys and theories and prepared by people often academics we actually measure -- average sales price so this is actual closing data and for the first quarter we reported up 2%.
Up 2% for the first or 2% were others like the National Association of Realtors is from forecasted down 3% that's why the case Shiller report was not that strange.
Was only off by a point or to -- between Fannie and are there both forecasting down quarters.
And you know I think I guess is a forecasting tool they're going to be off the reveal what what -- margin prayer 510%.
Where I want all what's your decide repelled margin -- -- and we'll know more about that margin.
When we see when they actual bottom of this market is and hopefully obviously sooner.
But given everything that is happening in this economy right now we're looking at manufacturing numbers that allows it today.
We're on we're looking at -- market I think allows is a kind word for this market today.
We have got so many in the unemployment numbers mind you 38000.
That ADP report holds up.
We're -- jobless claims tomorrow we'll get some more validation on the numbers.
But it's clear this economy is not in anywhere near robots so housing is doing what one would expect -- Well it's so funny and you saw the headline to double -- announcing -- real sure how we recover to begin went so.
-- assuming too much I think we are in that stage of the housing recovery where it's bouncing around it's very dependent on jobs.
Without jobs we are not gonna see -- -- housing recovery.
Do you get a little tired of the lack of leadership in Washington DC in an Indian business really I mean I am so tired of and forgive me folks I'm I'm just say it -- have kindly.
These forces who are I mean there's your browser breaking -- -- sweat there in their roaring over what is and downturn in the market.
But I don't see animal spirits anywhere I'm seeing people pulling back -- hearing and I don't care what we're talking journalists were Thomas CEOs were talking about politicians.
When the context of housing we need the government to stay out of business just -- -- to literally get out.
Let the market corrected because it will it always test.
Look at the the housing affordability program what are we on version seven and they've all failed.
-- acknowledge the failure to get out the way let that let the attorney general loss to.
That is now pending against virtually all major lenders resolved that get that -- -- -- but the banks foreclose on those who must be foreclosed on absent that.
They're going to be tied up.
For a considerable period of time that's not good for house and it's making it far more protracted than it should be what we need to do -- -- in this country right now.
To stop the nonsense and get prosperity.
Restored to this country.
-- what you and I do every day which is we've got to get our fiscal house in order we have to manage your debts and obligations we have to cut spending all of us would do that.
The Internet to cut taxes is that's -- stimulate growth and -- -- simple fact.
The debt ceiling get a resolved as quickly as possible to stop playing politics -- and -- know the goal get it fixed getting a room.
Don't leave until you fix it go -- 2012 budget.
It's a proposal that's that's the only one on the table right now so you have to give it a plus I think our richest -- -- close to you thanks for being here my question would breaking news and.
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