Housing in 2015
Existing home sales have fallen to the lowest in six months, down 6.1 percent in November according to the National Association of Realtors. Tim Rood joined CNBC’s Brian Sullivan on Street Signs today to discuss the latest report and Tim’s expectations for the housing market in 2015. Sullivan noted that existing home sales have recovered from the recession but are “still well off the highs from the housing frenzy in 2006.”
Rood called 2014 “a push” saying that “There are really no winners or losers” and that 2015 is going to be more of the same. “There is a very tentative recovery as you start to see the economy rebound and incomes pick up as you should see a lot of upward pressure on the housing market,” he said.
Co-host Mandy Drury mentioned that investors have started to leave the market as a result of the decline in distressed properties and foreclosures. Rood explained that, “Typically low inventory is a good thing because that generally means there is a lot of demand. Right now we are seeing low inventory because there is not a lot of demand. The easy money has been made so you are not seeing the institutional investors coming in.”
“The inventory that is out there is really not that impressive so sellers have no place to go,” he said/ There are not a whole lot of opportunities for the move up buyer. The only way they can move up is if they can sell their current property. Properties that are a nice property that have a good location are still selling in under 30 days but they are the anomaly. Its not a norm for the market as a whole.