6.06.11 (Part 1) Real Estate Radio With Louis Cammarosano

Ryan and Louis discuss the prior week’s economic events. Mortgage rates hit record lows last week. Louis and Ryan discuss the value of taking out a mortgage now to protect against future interest rate hikes and inflation. Ryan and Louis discuss 4.2% decline in home prices in the first quarter as indicated by the Case Schiller index. Ryan notes that the Case Schiller index leaves out condo, coops and new construction and therefore may give a false reading on the direction of home prices. Louis notes that the Case Schiller index does not give an accurate snap shot of current market conditions as it dates back to the prior quarter. Louis references the second quarter 2011 HomeGain national home values survey and provides the preliminary results with 57% of real estate professionals thinking that home values would decline in the coming six months and 42% of homeowners expect home to decline in the coming six months. Louis mentions that he believes home prices will remain down until the inventory of short sales and foreclosures are cleared from the market. Ryan postulates that home prices are down due to incessant media focus on shadow inventory and distressed sales that cast a negative light on the housing market. Louis agrees that consumer sentiment does play a role in home prices and that the media can influence consumer sentiment. Louis notes that the underlying fundamentals are what really drives the market, not the media, claiming the market speaks louder than the media
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