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Realogy CEO Richard Smith argues without jobs there will not be a full housing recovery.
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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 -- -- Joining me now is Richard Smith he's the CEO of trilogy the parent of century -- one.
Coldwell Banker Sotheby's and many other prestigious real estate brands across the country.
Great to have you here -- pleasure Lou well we're -- 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 Shiller of the Case Shiller and.
What you're going through correction that's a good fact and we are at a point where the price value proposition is so compelling.
That the trough which is arguably -- -- seven.
233%.
Depend on 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 them.
And we're starting to hit the point where it's bouncing around single digits so it's going to be multiple.
No one expected anymore than -- and that's for this year.
And if inventory start shrinking -- -- successive 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 higher in Texas and surveys and theories and prepared by people often academics we actually measure of 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 for 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's -- margin prayer 510%.
We're allies at all what you decide repelled margin as -- -- and we'll know more about that margin.
When we see when -- 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 in -- -- 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 for.
Well it's so funny do you saw the -- 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 words bouncing around it's very dependent on jobs.
-- without jobs we are not gonna see a -- 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 -- have kindly.
These losses who are I mean there's their browser breaking out in sweat there in their -- over what is and downturn in the market.
But I don't see animal spirits anywhere I'm seeing people pulling back I'm hearing and I don't -- what we're talking journalists were Thomas CEO's 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 is it will it always test.
Look at the the housing affordability program what are we on version -- they've all failed.
-- acknowledge the failure to get out the way let that let the attorney general lawsuit.
That is now pending against virtually all major lenders resolve that get that -- away.
But the banks foreclose on those who must be foreclosed on absent that.
They're gonna 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 permanently 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 meant -- simple fact.
The debt ceiling get a resolved as quickly as possible to stop playing politics you -- you know the goal get it fixed getting a room.
Don't leave until you fix that go way 2012 budget.
Entitlements.
Ryan's proposal.
It's a proposal that's -- -- the only one on the table right now so you have to give it a plus I think our richest man -- across to you thanks for being here my question would breaking news and.
