George Ratiu (National Association of Realtors, Housing Update)


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

If you're on the go you can still keep up with the financial exchange on the I heart radio app available in your phone or tablet just searched the financial exchange and you can hear individual segments report shows he can't listen live we've got you covered I heard radio. We're joined now by George route to from the National Association of Realtors I George. To be here glad to have you existing home sales report came out this morning can you summarize forcing give us an idea what we learned. Certainly so September and it fails. Or pop or point 7% from August we're looking at an annual pace. A five point 39 million homes were dealt. Bats and numbers or work on a year over year on from Austria September about one point. Most of the. Objectivity. Remained hampered by his low inventories at all. It's an of inventory or obstacle while 4% from a year ago. And even though while mortgage rates or actually lower than this last month a lot of buyers particularly at the lower end of the market. Running into is not enough homes available for sale. George Heidi getting impacted by the hurricanes in Florida and Texas that report. So it's the impact. Certainly shored up. In fact that the golf course. The one region that reported so declined to probably last month. Particularly it would it would market like Miami. In good decline. As well as in technical at Corpus Christi and all compiled by double digits. Just a surprisingly was lit up a ball 4% to. From there on the harmonica. So clearly we have seen impact I mentioned it the other region from Boston state. 'cause the northeast doing. Doesn't want to be calm was a lot of arsons last month so we came into the actual space. I'm the one thing about the north east that that stood out loans. Prices war up four point 8%. Four point 8% year over year. While that's gonna bid isn't. It is it is the National League the prices dropped four point 2% or bought 245000. Dollars for a median priced home. It's a slow down from a earlier in the year earlier Dolores experts and but it's also. An actor. There had to do with the ball on a winter prices. Tend to vote to. Be lower partly because of a mix of home a couple of more model come on the market it's been disputed but your point but price appreciation still followed. I wonder how they can do that though how prices can go up when wages are only going up it you know two or 3%. He knew you would think there either wages have to catch up and start rising at fort 5% or prices have to slow down don't think. Well it to be honest the pricing right now is simply a reflection on the supply and demand in the market. I'm Pete zero point awaited obviously there aren't like indeed people in the market but in the housing. I'm probably try what we have is basically very limited new construction a lot of warm up buyers are are not having the opportunity to walk. Which is actually putting a lot of pressure particularly for those first time buyers. Com portal to your point awaited circle enough title or 2% but housing is is expand at a much faster pace so for now. Again we have an equilibrium based on existing you know I supplied yup in the long run aren't important or going to see what. What happened. George when do you expect new construction to pick up. Well I plan on that and looking at the builders by builders have been. Prompting. Shortage in terms of the labor party because and then that the Great Recession in the housing crisis of years ago. A lot of orcas in return to the construction industry. Compound in that right now. We have the reconstruction effort going on in places like Texas and Florida which are obviously. Taking a lot of of those. Very workers. Putting them out for a broader project which I think. When you look at that they employment situation lot. You add the construction cost and have contracts with our timber and other supplies going off what are you can count on song. That obviously impacting a lot. Of the construction so don't ask that your question what are the Tennessee and increase. We've obviously then indeed been hoping we would you want people the last two years right I'm not sure going to orders next to will be and it better. What debt in terms of homes being purchased. What percentage of them are being purchased by first time homebuyers millennial schools typically. So first I'm not fired at least in September. I comprise a little longer that are present I don't plan on the market which is. A little bit. And more. Been traditionally hasn't been an eight it still looks pretty clearly. Can. We. Are having a crisis for a lot of first time buyers. Whose wages. On. Are not enough to actually keep up with the pace of transcript. And very actually thank you very much dirt for your time and in all the information shared we appreciate. It's George were to from the National Association of Realtors. What do you fellas here among your peers you're both thirty years old. Yeah EA Mikey bought a place that lately with woody here from your buddies when you go watch football with a month Sunday. Yeah I mean the majority in my friends postal renting died there a couple actually two this year have bought home on the South Shore so. I think the wheels are starting to turn in I mean for me personally am targeting your lighting New Year's rank him were targeting our first home the passenger in reference or man down payment justice. Way too significant and cute it's almost instantly votes on it down payments like 5%. Asked if you go for the if you paid extra in the insurance and that otherwise it would actually percent effort in him for a C I've been told that tale I've I've been told. Personally that temper since the way to go for down payment now that's what I've been told so work Tennessee and I'm up. Significantly for that for now I I I know he needs to get FHA loans with three and a half 4% down the Hudson 5% now you can write. You know it's nice to have cushion you don't wanna buy it one piece of advice would you views. If you're gonna buy in new pals. Don't buy it had no cash went to get into that house does a little and had a cap issues well have yet Tucker's you'll buy that house is gonna mirror actions. The new and there's going to be. Expenses associated with homeownership. You'd never anticipate matter EU could spend. Time with your mom and dad they could walk you through all the expectations sums got to come out it always does and and it comes up at the most inopportune time don't they stated pretty much who leave a cushion of about like 5006000. Dollars. In anticipation of something coming up preparation wise it's not a bad idea I think you can do in your generation tends to do this a lot less than our generation it was. Try to do the home improvements yourself. You know the media there's a temptation organ put in new bastards who hires somebody. To do that. I take it is much as you can do in terms of the self improvement of your home's first of all. But this thing to remember is just trying to hire some. Is typical yeah make a lot of friends and those who can do great handyman qualifying you know if you've got a buddy who's an electrician. That's that's alike seem to build French general do you think if they do electric plumbing you can kind of bluff your way through. I'm really. And sometimes that I was saying you're giant blustery day well it hasn't gotten otherwise I had a few issues that. Plumbing you'll die if you make a mistake this entirely legal grounds electrical use you might die you make that mistake.