Century 21 CEO: Good Time to Buy Houses

" could this have something to do it just a short time ago the Mortgage Bankers Association said it -- median home prices. Fallen about 10% in 2009 versus 2008 and now forecasts that the US existing home sales. At four point eight million units in 2009 that'll be down about one point 2% from 2008. So what could be done to put a floor under it to keep the housing market moving joining us now somebody who knows it's -- first on fox business and its top. -- CEO of century 21 real estate top when you see those numbers you say -- tell me something I didn't know hours that that was my thought."

" No idea -- when you when you Sam look at countries a whole you know that we're still seeing numbers that there's a lot of pressure moving them let. When you look at some of the marketplaces that are really been hit California and Nevada. Arizona Florida which are some areas that I just visited you know our our brokers -- tell us that they are seen increases and transaction pricing. Is still falling down because we have so much inventory sitting there. -- inventory comes down prices SARS the level album and and move forward I think things are going to be you know we'll we'll -- some movement. So you just came back from Vegas right is that -- About three weeks tell me about the atmosphere there are foreclosed homes selling at a grip better clip what would you sense that -- foreclosed homes are selling almost any marketplace that your going that's a free market at work at the good thing right but the thing we have to look at is is that. Real estate market works on what I call a domino effect where you know you we've got this percent home homebuyers tax credit. A 2008000. But what we need to see is we need to see that go away. Increases to 15000. Let anybody who's going to -- primary residence and the ability to get a 15000 dollar tax that's nearly -- Tom -- that we needed to jump from eight to fifteen well because you're going to -- move up market the you have to have a movement -- get a first time -- are going to -- they're going to buy a home that person needs it. They have the ability to move -- also. And that's what makes the real estate market move if you look at the number of transactions. National Association of Realtors today about 40% of the market is foreclosed homes so that means that the normal type in the market people who are out there buying and selling. -- almost half of of the normal marketplace. So we don't get that if we don't get that push to get that move up buyer to move. We're we could be and where sexually."

" You could argue that at least a big push came when mortgage rates for example thirty year fixed were five and a quarter percent we'll certainly they'd split that up. People's hearts just jump in some way to let up when we get to five and a 3%. Up into -- to an extent it can't manipulate the mortgage market that much longer. Do you get the sense that this will actually be a blessing in disguise and at that fear that people will miss the move. That they'll jump in and start buying or will they consider waiting in hope that the mortgage rates will fall."

" I have always said this and and and the issue is is is somebody sitting in the marketplace society -- tonight the issue here you can't rely on looking at the national numbers. You have to sit down and say let me look at my situation so -- a professional realtor somebody who knows the market who can sit down and say to you Liz. This is the situation in right now he got home this what you have to sell floor to you know and how much money you take out but most importantly what can I do with that money. At five and a half percent. It mortgage money and for the inventory descending in the market."

" Please tell how it works at century 21 your gigantic conglomerates here and and you're looking at. Many many brokers who were out there pounding the pavement every day today check in with you in groups -- what are you hearing from the boots on the ground."

" Well what I'm hearing as is obviously it you know it's all about an eyeball valley valley type of business and so right now our agents have to talk the more people. And our our big push right now is education and it's in the education about what I just talked about. What can use an individual do every there's all kinds -- is going around all day long about. You know financial institutions and come -- your time business people -- bankruptcy unemployment all the other stuff but the issue is really. Individually what can you do with your assets. And your local marketplace taking advantage of what's going on in the marketplace evidence business for thirty years as his prime one of the best buyer's market size."

" Will -- the darkest of Morgan Stanley was just saying they'd just incrementally increase their exposure to real estate from zero to 2%. So clearly he has -- strategists looking at the entire market says now it's it's starting to look cheap enough. That you could make some money."

" I think you can mean look I was talking to one of our offices in San Diego. And you know as I know is you're you know like that came from that marketplace and he facilities that time he says she can go out as an investor right now just the single this an individual by a romantic cash flow for investment -- In San Diego -- never heard of that. But that's the opportunities are in the marketplace you can move up move sideways better market moved down to downsize or do some investment if you'd like to."

" Well that's the thing that people started to do to have that -- at very height of the bubble then. Let's take on those in Boca Raton darling mean c'mon well they want to get to that question while."

" You have to be you have to do it sensible you have to look at if you're gonna do it real estate investment. Mistakes not going to turn over. Over the you know all over a year 11 or two years it's something you have to look at from the cash flow perspective if you -- from an investment standpoint to say. Look I'm in this for the long haul I want to build some wealth and real estate. And some running on them by some investment property and managed not -- a few thousand dollars down away to somebody comes in and flip."

" Tom Kearns would love to have you can thank you someone thinking reminds us. Tom is the president and CEO of century 21 realistic at this thing."