Coldwell Banker CEO on Housing Market

" Slowed again last month march existing home sales came in and an annualized pace of four point 57 million homes less than forecast inventories also rose. Housing supply rose about nine point eight months of inventory. Up from nine point seven here -- weigh in on the numbers and the state of the housing market America Jim Gillespie. CEO Coldwell Banker Jim welcome back -- the program I think certainly that are lucky you you've probably heard the interview and they're getting ready. From Thomas James -- ring against financial their bank had a lot more write offs okay he thought things weren't."

" Necessarily want to get better in the next few months what do you think. Well I think that you know we're we're still in a pretty much of an economic -- in this country and one of the the things I think that is missing is. The fact that every time I've heard you interview anybody on television they say we need to fix housing. Housing will lead us out of this economic. Downturn might as it has six of the last seven times -- and recession according your data historically recessions. Housing provides. The pull out exactly and we're talking about stimulus sold in order to stimulate housing we need to go under the demand side. Our government is trying to help foreclosures and that's it a good thing it sort of makes you feel good that 58% of the foreclosures through the first three quarters of last year have failed the the loan modifications that failed. What we need to do is attack. The demand side get people back. Buying homes first time homebuyers are back in the market 53% last month but we need to do two things Brian. First thing we need to do is have a 15000. Dollar tax credit for all buyers primary residence right -- right now and they tell you first time only for first time so we need to -- leaves out what what 67% of America and they own the homes of 67% of the pool of potential buyers. Does not get the tax credit who have left absolutely absolutely the second thing they want people out jobs from -- going to provide them the pool of potential buyers keeps getting smaller and smaller well that this could still weigh over 50% would get eight and a half percent unemployment but but but the second -- want to get the second point in and that is we need to set interest rates in this country. -- twelve month period thirty year fixed interest rates at 4% maybe four and a quarter for what they're getting there. Well they're getting their lesser value -- well let's see the point is they're giving their and that's what the public is is is we is waiting 41% of the people in this country that want to buy a home or waiting for interest rates to drop even further so we head up I mean interest rates of 4% it's not going to go up not going to go down for the next twelve months that we'll take that. Off the table the 15000 dollar tax credit we'll take off the table. More than half the people in this country that are waiting to try to time the market and waiting -- prices to go down. Are well last time you were on it took a lot of heat from the realtors I got a lot of seven billion emails that we wanted to stay in my hide so I spent some time my brother in laws are very successful realtor. -- Merrill and we and we talked about the market and he seems to be doing pretty well but he was talking about how there still is a little disconnect between buyers and sellers what sellers expect. A lot of buyers are coming in with -- deep low ball offers thinking they can sort of name their own price I was saying hey I'm not that desperate. When do we bring buyers and sellers together because this seems to be at least disconnect there well made it to the way to bring buyers and sellers together is to burn off the inventory have a balanced market sellers you know it is it's still kind of surprisingly a lot of sellers. Are not realistic but those are sellers and aren't not are not taking the advice. -- force service professional realtor like your brother is. Well -- let's say I got a house with a 300 and a buyer comes in knows you know watches Fox Business knows the headlines knows how bad things are -- 200000 like you know. Be you know how to -- how do we hit that well apparently a group of buyers and sellers together more effective first of -- did you come up with a 300000 did you did you go to professional -- did you have the cops. Shown to you. And -- if that's the case and they were true price is 300000 then the professional realtor on the other end of the of the transaction when the threat that's working. With the buyer but when you're being unrealistic well who exactly showing us what recent homes and so -- Yeah -- okay if we bring interest rates down more I mean. I'm wondering marginally when we -- the Freddie Mac realty numbers real estate mortgage numbers crossover a couple of minutes ago with about four point 8% -- for -- conforming. Lone bright FHA backing a lot of these -- yet -- right yes if for only you know half a percent. Thirty basis points away from. Your mark. Four and a half percent is that going to make an incremental difference it is during his -- magic they don't think that he is again 41%. Of the buyers are waiting for interest rates to go down even further. And about the same number waiting for prices to go down so that two things that I'm proposing seven -- frustrated for fourth quarter percent for one year thirty year fixed that takes. That off the table he give a 15000 dollar tax everybody that tax credit to everybody buying a primary residence that takes. The that the the the buyers that are waiting to try to time the market that takes that off the table. Yeah and you get the economy going do you realize Brian. That according to joint center for heart for study for housing studies at Harvard. 21% of the gross domestic product in this country last year was housing related and also every time a person buys a home in this country 63000. Dollar 53 that's 63000. Dollars question furniture or long get what everything that a whole combination is put into that local economy. -- drives the economy that drives your jobs you know one of the the problems I quoted 58% of the loan modifications don't work out the reason they're not working now because people are not employed people are losing their jobs are scared of their -- you get housing going he get the economy going. Then we're out of this economic that problem and and I can understand. Why are representatives in Washington DC can't see this they all say we need to fix housing. And then then they ignore the housing situation other and they raise you know it's that this whole political thing that we get the money people involved right he went -- her credit the first time homebuyers but it's like wait a minute. That's a very small percentage of people now. They need to worry open and I'd be exactly the kind -- yes -- Giuliani that there aren't likely he'll call."