PwC's Mitch Roschelle talks about the recent disappointing housing data and what is keeping buyers from getting off the sidelines. Bobbi Rebell reports.
And it didn't is that may be bad news here in new home sales rose last month so that is the getting is. That not only was the rise less than expected it was all concentrated in one region the west sales actually fell and three other regions are now that has raised concerns. About maybe a loss of momentum in housing market here remark which was out you leave the real estate practice and he did you see where he's a partner great to have you and body are your take. My take on housing. It's not bad news and one month does not a date is set make. You had numbers on Monday that look bad in numbers today that look good and the fact of the matter is people are buying housing but think about what time that your business is not exactly. This selling season so I think you know it'll wash out and be much better and spread. We have weakness in three of the four major regions are coming into the spring selling and if you look at the existing market the product in this and existing and new is just not a lot of products people not buying things that they can't mine so. I don't really think that is a problem. And one market for us and other. It has shaken over the okay you're concerned about an elderly and people like you just stand. I'm very concerned about they'll build up four months' supply. And in that case in new. About six months in the case of existing if you don't like it you know can buy it regardless of the price so that's a big problem. Homeowners who wanna trade up can't find it first time home buyers can find it. A little bit she says and what are the people. Polled by. Are ripped through rates are more. You know I think the last time we talked about it rates was huge issue. Not in an issue an ultimate back. I've fingered the lowest point since last April so it's not it's not an affordability perspective from Costa barring. It's an affordably perspective from do have the down payment and that the price just to I've. Because prices keep creeping up even though it's not very housing numbers. But it's all about supply and demand so. There is demand we don't have a problem of demand for housing supply problem as supplies tight what happens prices go up to receive. Let's talk about the broader economic impact and just stay out what happens that. So. If people don't buy housing. That really won't disrupt the market. The real challenges new housing and construction for new housing so. Mean you demand for new housing and interestingly nobody knew Hauser 20% more expensive. Existing houses so. The thing that really drives the economy is when people are buying houses and build new houses singled him in part this is totally dependent continues to boom. But we need to build homes because that's the big driver for. So that that's it here what's interesting is I think it's not just young people with people in housing market in general they look at. Housing as a way historically decree well. And if they look at what's happened in the last ten years where people lost my housing so I don't believe them decree well what they're doing is buying existing problems fixed rappers. Do it in doing it themselves creating value because they've actually improve on. And they have a big pop and appreciation they wouldn't have gotten if they just didn't do it that's a really interesting craves. And it's gonna continue and it's very popular with the people who. Really are trying to get the most out of them. We get to see people's house seats are flipping flipping. I am flipping zone phenomenon. That just doesn't ever have legs to it it gets a lot of headlines but doesn't NASA Atlantic Stewart. But that young people that we talked to do our survey work. Really wanted to create a whole. House and they wanted to exit out sort of put their sweat equity into it so mind. That is. The case and about I think if you get a sees it as I've got about this is writers.