Affordability is the problem for housing- Trulia's Jed Kolko
Thursday, March 20, 2014 - 03:08
Mar 20 - Home prices and rates are rising, creating hurdles for first time buyers and investors says Trulia's Chief Economist Jed Kolko. Bobbi Rebell reports.
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It is the first day of spring traditionally -- time to buy and sell homes that. -- coming spring existing home sales were at their lowest pace since July 2012. Truly is chief economist at cocoa joins us via Skype with more on how things really love -- page -- Do you -- so -- -- basis of what's really going on behind it and there buyers is just no inventory would EC. -- -- packet going out and explain outlook our home sales. A very important actor that there sure -- closer marker in Europe don't distressed sales. The foreclosure -- short sales are particularly popular among pastors. Only look only at conventional sales excluding. Don't distressed sales. Hotels were actually up about 4% a year when Clinton -- distressed sales -- sales overall were down about 7%. Whether there's so much time and how about the winter was. I think the original to -- -- blamed weather. When you look at how bad the way it was nationally. It was a bad winter but it wasn't the worst winter. And when you look at the regions of the country. That account for more. Housing activity both -- construction. We were actually pretty mild a lot of parts. The West End and who near normal in some parts of the so we can't play much on the -- So then bit but we will say the weather is ever everywhere should be improving right about now as we get into spring how does this spring market luck. The bigger issue is affordability. Remember prices are up. About 10% a year year and more free Europe about all point which adds another 10% of across the -- comic you don't know. That means that aren't is roughly 20% more expensive for your house right now than it was a year ago. That's particularly harper first time home buyers. It also was a challenge for investors opt for -- and now that buying or rent it out doesn't look as -- -- your. That those are two important reasons why we're not eat. In hopes they'll break. So this market where people will win they're going to buy a home I'd be focusing on rates in and keying into for example yellow thing. Or is it about I have a job I'm confident about the economy so I can take the ones who wears -- there. -- Obstacle for people who want my whole are right he's still -- -- -- don't. Remember we'd come out of the recession. Many people lost jobs -- -- cheering their jobs. And also seen gatlin. All these things harder it safe for all -- -- Also it's typical from any -- all my car mortgage all these actors pull back people who might. Be interesting thanks so much and. I thinks it truly is jet called I'm Bobbi -- this is writers.
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