Home Prices Continue to Fall

" Good and the bad of the housing market we just a short while ago got those numbers on existing home sales for last month up nearly 3%. But prices down 15%. From a year ago and the supplies are piling up pumpkins is the CEO of Pacific 21 real estate joining us."

" With well the world of realistic and they didn't see you again. What how much it just based on what you see. What percentage of sales are distressed sales whether it's."

" Short sale or a foreclosure. But you look at and -- or Fannie they'll tell you that this -- float somewhere between about 34% of what's cells that are taking place could be short sales of Oracle's else."

" And how much and clearly that's what's dropping prices."

" Down down down fifteen for more than 15% from -- inventory -- what's driving it down which which includes a lot of those properties so. As you know as you saw the numbers think incentives ten point two months' worth of inventory nationally and our numbers are just released. We look at an average market and about six six and a half months. So we have excess inventory excess inventory pushes pricing down and as we see that the inventory analyses prices -- stabilize."

" 01 of the big big picture questions that nobody seems to have an answer for maybe you do. How much pent up supply is still out there just. People were sitting on the sidelines saying humming away until things start to improve a little bit then I'm going to put my home on the market but I don't."

" Have any numbers but I can tell you that had just been talking to our agents as I've been around the country I think there is a lot of and in the man. And that's why we're you know we're very appreciative of the government what they've done so far in trying to hold interest rates where where they're at and we hope that they continue to do that. But I -- and we're also very appreciative for the 8000 dollar you know first time homebuyers tax credit. But we think that there's no more than can be done to pull these you know buyers and sellers off -- in the marketplace and -- and start reduces inventory. And what we'd like to see is this tax credit to lift the cap on the tax credit moving up to 15000 dollars you know with a conforming loan. And with no left cap on you know income. We think that that what that will do will allow more buyers have come in we'll get rid us on this inventories and -- goes down prices will start to stabilize the impact from more immortalized market. But in addition to that -- no no -- tells us national association. Says that for every home that sold the mean price 63000. Dollars worth of economic impact happened so. If you want to move these individual economies up. We need to get these home price we need to get people out buying and selling home so that we can get that 63000. Dollars of economic what do."

" About the greater risk that every taxpayer in this country is taking on by putting money into the housing market but also. What the government's doing with the SA today and the three and a half percent down loans ensuring what is that the majority of the loans that are being made today. Is that wise because again are we digging another whole. To get us out of the one that we see still in the housing market well it."

" HA rates have not have been extremely low for many many years so when you see the increase is that they want to put their limits. In my estimation that was just really getting in on par with what's going on in the economy. And I hope that they you know legal and place them moving forward in the -- California. When prices that move would still -- move up again eventually. -- eight F eight FHA was basically price have a market -- you know to that that's a good organization we need to."

" Have that kind of thing you would Beyonce and with a three and a half percent down loves the buyer has no virtually no skin in the game. Not and really if you factor in the 8000 dollar credit and that's going toward people down payment. And those are government insured mortgages if they go bad which we are seeing them go bad at a faster rate than some of the worst lines may. During the picket the bubble that is American taxpayer money that is on the line to help people out in the housing market. I mean how do you what do you say to everybody you might be at -- because."

" Well I mean I I think that the the basic fundamental issue is is that even if you're putting -- 4% down on you still have some skin in the game. That's a lot different than when you have stated income and no -- and make it happen so. You know there is some skin in the game and I think that the issue is is that the bigger fear is that we don't reduce this inventory list that's out there. We're going to see these things continue for very long."

" Pumpkins thank you so much -- thank you very much video and -- 21 real to hang in there."