video transcript

We keep hearing about this housing recovery -- we don't hear nearly as much there's a housing shortage. And severe. Look at Riverside California the -- from broker will Harry. Victorian area. -- sure. We average on -- 2200. Listings. Activities of one mind. Our current inventory -- 360. Units. The shortages more prevalent in the west California Arizona and Nevada. Nationally in 2008 there more than ten months' worth of new and existing homes on the market. As of January that's applying it shrunk to just four months. A big reason for the shortfall a stampede of investors. Big and small to make -- a fourth of all purchases instead of flipping homes they're renting them keeping them off the market. The dynamics. Is certainly surprising. Is in the pace of the inventory decline that we have witnessed. And that is due to the investors coming into the market. All many times -- an all cash so they are completely bypassing mortgage process. Indeed the percent of homes bought with cash more than doubled in large metro areas to nearly 37%. Last year from about 18% in 2005. About the same held true in herrings metro area another problem. Fewer foreclosed homes are up for sale. No we're seeing signs -- the service -- the housing market is improving pump prices increase in sales increased and demand increasing there's still an underlying distressed and housing market that has created an imbalance that bigger problem behind those properties actually in foreclosure are homeowners do our. Underwater. And they're not even necessarily masking their mortgage payments but if they go to -- They're gonna have to sell via short sale the or rather than via regular equities up. All of this wouldn't matter so much tipped home builders were busy building homes at a normal -- Right now there about 13 shy of the -- of roughly one and a half million units per year. That's because small firms are having a hard time getting construction loans. On top of the shortage there's a spike in demand for homes as a job market improves an interest rates stay low. There's multiple offers my last listing to a 22 offers. Talking is sort of the people in my -- this the last 144. Offers on one property. So what does all this say about the alleged housing recovery. Since short supply and high demand. Equals higher prices the National Association of Realtors Lawrence -- says this rebound from the worst housing market since the Great Depression. He's real. And show of the multiple bidding frenzy could continue in some markets and -- says this housing shortage could last another year or two.