Has Housing Hit Bottom?

" Better idea the housing market. It whether or not it's way on its way back up or whether or not stabilize until the release of the April existing home sales numbers. Coming -- ten man analysts say the number of likely climbed to over four point six million after dropping to over four point five million in March. Yesterday though the S&P Case Shiller Index revealed home prices in twenty major cities fell almost 19%. President CEO Coldwell Banker real estate Jim Gillespie will have to Washington next week to push for legislation to kick start the housing market. Happens to be joining me now could -- campaign lady here thanks for having me on again so look at existing home sales numbers and we've got some data showing what we've seen over the past three months coming out later this morning what do you expect to see people where his housing market. "

" Well I think we're the sloppy bottom I expect to see numbers about the same as we've seen the last five or six months with resales annualized somewhere. Round four and half million I think the experts say informed point six million could very well be but again this is so in such a strange market because. Never in my 33 and half years in the business have I seen a better opportunity to buy. The people are still sitting on the sidelines and that's one of the reasons I'm going to Washington DC next week."

" the sidelines and what you and I were talking about this earlier you have things like the first time home buyer 8000 dollar tax credit. It exceptionally low interest rates yes you said to me before elections this is a great time to buy. But yet the market is not. I guess we're getting rid of that excess foreclosure inventory. Tellme wind what are we need to do that."

" Well the foreclosure inventory is starting to burn off first time homebuyers are taking advantage of the 8000 dollar tax credit. I think in April 53%. Of the or march the last report by an. 53% of the homebuyers in the country are first time homebuyers but they're buying a lot of the foreclosed properties which is good but we don't have. We're not meeting the demand side we're not seeing move up buyers is I like to say we're not seeing main street Americans buying from mainstream Americans and what we need in this country. To get the economy going. Is to get real estate going in to get people the move up buyer out there we need a 15000 dollar tax credit. For all buyers of primary residences for the next twelve months. This will will create jobs Alexis every time at home is sold in this country 63000. Dollars is put into the local economy. 63000. Dollars and according. To the joint center for housing studies at Harvard 21%. Of the gross domestic product in our country last year. Was housing related and that numbers fairly consistent anywhere from eighteen to 23%. So senators and congress people are all saying we need to get housing going in where they're missing the boat is on the demand side we need to get. Move up buyers buying from from other people buying from other people."

" It's interesting because some of people predicted that housing starts. In this country this year could be the lowest level that we've seen since World War -- correct the foreclosure activity right now is one of the biggest areas of activity in the market. But a lot of those foreclosed homes are being purchased from financial institutions because the owner is no longer in the property. We have exceptionally low interest rates we have a tax credit and there's just not enough demand so. Are we going to artificially create demand by giving outsized tax credits or do we have too much homeownership in this country as we stand today."

" Well it's a great question we're not going to create demand we're not going to create a bubble because we've got over all right at ten months of inventory so there's an awful lot of inventory. To burn off if you take a look over the last twenty to 25 years reel trends did the study on this. And typically the number of resales in this country is about 5%. Of the number of households and their 110 million households in this country so. Based upon twenty to 25 years of study. That the either run rate for for -- so should be around five and half million in -- that four and a half million as we discussed earlier so there is no threat in my opinion of creating a housing bubble -- artificially creating demand. Well we're talking about is getting Americans back to work. We're talking by getting the economy going and housing has led our country out of the last seven recessions are major downturns in this is one area where our representatives are missing and that's one of the reasons why. This week is Colin baker legislative week where people are talking to their represented as whether home. And next week I'm going to Washington DC to lead the charge for 15000 dollar tax credit for all buyers -- primary residence regardless of their. Income and put this on the table for twelve."

" Months you know when things we have are some things that you talked don't want instruct federally was guaranteed fixed income. Specific weight or fixed rate mortgage at one point we were talking about four point half percent. You're less concerned about that now because frankly interest rates have been really really. Terrific. But you're more concerned about this tax credit because you feel that's what gets people over the -- here's the problem can they get access to the land."

" Whether lending money more money is there it's back to the way it used to be which is if you can document that you have a job. Document your income your assets your liabilities you're -- you know you're gonna get alone get get good good credit score that's for sure you have to have down and pretty good down payment. But again people forget FHA financing is out there FHA finance -- is a great way it's a fixed rate mortgage."

" You came I was I was thinking about that before 'cause we've talked a lot about FHA financing for. And worry about Fannie and Freddie I'm not a little while Morgan okay we see a lot of problems with Fannie Freddie. And yet they suggest -- we might be seeing the bottom I've seen several other reports suggest that might be seeing a bottom in the next 36 months. But the health and wellbeing of the two largest government sponsored agencies that are in this business the help of wellbeing. All of the securitization market. --"

" Well that's way in the last summer I think the federal government stepped up and -- even though Fannie and Freddie are government sponsored entities we -- Firmly behind. Freddie and Fannie is that that is vital to our country like you said housing is vital to our country. The federal government cannot allow Freddie and Fannie to to go under to have any any problems with it that's why. There's talk in Washington DC and again I'm not an expert on this I'm not going to comment but there's talk about. How can how Fannie and Freddie would be restructured their vital to our economy and and vital to our country -- keep an -- and then. Well we're all keeping -- I am I think half our friends in DC are keeping an eye on us."

" keeping a close enough fire on them. Jim as always wonderful thing you thank you so wanton and let us know what happened down DC next a wealth."