screaming]

>> "washonalues. host: at our table this morning is lawrence yun of the national association of realtors here to talk a t u.s.. what are the bigng costs? caller: -- guest: morning, thank you for having me. we have a bizarre housinma at the moment. making it very difficult for potential first-time buyers to enter the market. all-time high interest rates and

specially for mid -- homes. at the same time we are not gettinges last year were essentially atfar, it is trending a little bit had very , but home prices are at a record high. host: who should be buyinguest:s believe in is the dream of over ship. 100 years ago, the middle class and the working class didn't come aer was the middle-class and upper-class but hom ownership rates began to rise, it was up to 66%. it was the solid middle as of ae of america. right now i think is there, but the financial

capacity is very limitedof affot there. high mortgageincome growth is ot well below the home price growth. what about this headline from "the new york t," "a huge number of rates too good e up. " guest: it's a restriction on potential first-time buyers d generations. they are frustrated. on the others, owners are all smiling. 's wonderful, low monthly payments. no lies. monthly payment isn't - they lo. one trend we are beginning we know the life changing circumstce family. new child.

people turning 65. maybe they wantmaybe within thea clearing pattern. over time i think some people say i love the percentage but i have to give it up because i need aou. we are beginning to see more inventory now. 18%ne year ago. historically we are still low in terms of inventoryhost: do you s will ever see 3% interest rates again? that was a special circumstance with the covid lockdown. massive stimulus with monetary policy, zero the fed that essentially led to mortgage people took advantage of that. ■epeople financed at those rate. those were special circumstances

. long-term historical average, by the way, mortgage rate of around . today the mortgage rate is right around that level but compared to the recent past, it's much higher. host: it take the consumer to adjust to the idea that they are not going to agaiy to hover around guest: so, you indicated that te current monetary policy is restrictive. by saying that they are indicatingot normal, meaning some normalization will delays might get pushed into next year. that could lnot 3%maybe trending down as a ssericans need to rece

whether 7%, 6%, i mean my parents, in the market mortgage 16%. it was one of the best decisionsthey could always refinance down with interest rates declining and giving home price appreciation that they could useth tried to sell the home as a down payment on the next trade purchase. host:■/ what is the appreciation percentage rate right now? guest: 5% compared to one year ago. the big increase in 2020, 2 thousand 21, 20%, 25% in some markets. then tas aincrease. experience.6but it is still a ge host:an consumer

see 20% appreciation rates ever again? guest: going to be a tough go. any people are tapped out riods first-time buyers cannot once the mortgage rates decline, i think the homebuilders ws advt borrowing to build more homes so the you will get msupp that locked in effect, i think that once the interest rate differential begins to see thate circumstances have changed. they will need a different size home or location and then we start to see more movement. guest: we have -- host: we have divided the lines this morning by homeowners. (202) ■@8- for homeowners --(202) 748-8000 for homeowners, (202) 748-8001■f for the rental

market, and all others that (202) 748-8002. guest:l market is difficult. there is sentiment across the country for rent control. i understand that sentiment, but it's a poli position because it would lead to lower inteation of the property, less constct leading to housing. the weight on the rent■p■ build. sometimes it may require tax incentives. gly, for the past 12 months, we are in julyjuly of ly down from one year ago. that isec new coming to the market.

omaha, nebraska, they are bu apas. all of these new units coming onto t market. host:revious to this construction surge, you had high demandapartments, eroding the pf rent. guest: that's righ you think itn as long as construct continues? guest: as long as construction continues. ' about building future apartments, which has me thinkinglopers arey cannot make the numbers interess and they have the federal reserve with lower interest rates fee for putting more supply in the mket. i hope we don't get into that for a couple of years when things srt tessiwe need to builo

build more homes, so that's how han housing costs situation. host: let's see what■ our viewes have to say. texas, good morning. ca although i respect your propaganda. what has hneto the housing market is that 51% of all housing inventory is being hat are called corporate landlords. ■qthey are manufacturing a housg at happened 10 years ago. that's because they are allow to get these money and then fleece the communities because construction companies are building entire communities, planned communities that are■b only. le are looking for rent control, these apartments have been in existence want from $750 a month to

1600, $1500 a month based on necessity and a lack of inventory. the inventory that is lacking is because most of the housing, especially starter homes, they are and hedge fund un into these cities and purchasing properties host: let me stick with that g crisis. what is the crisis they are manufacturing? they are buying 51% of all housingnv a person enters tg market, there are a limited er buy and they have up to the numbers so high that most first-time homeowners cannot afford to buy a house and the people■z■f who can enter ina bidding war. a bidding war for a house that only 300,000, they have to offer 2 costs just to get the offer approveden

effect. other people see that asreased d then the other househe area increase in value. people who go to sell their homes, right, they cannot buy other homes because the interest rate is too high. the rich are manufacturing a housing crisis. host:■■1■+ in his words, the crs is affordability. years ago saw t housing shortage. 2019, before the arrival of covid that 5.5 million ■nunits would be short in ameri. policy going through everything at t local, the federal level, to bring supplyoe of major institutional itofundso gein the market.

we are also seeing in states like ohio d minnesota where they are trying to restrict institutional buying activity so these employeesby imposing certr certain interest deductions that the wall st we see some measureo tough market. i'm hearing the frustration of realtors atlanta saying i am a first-time buyer. we have to diss and may some policy tweaks■w stop if we have adequate supply there is no]nb reason institutional investors would want to enter the market. ho is his theory right? guest: one can understand that in some markets, yes.

houses are being gobbled up by instiona and none are left for the first time buyers. that isare they getting specialt in terms of interest we provideg supplythat means institution uy they feel frustrated that he institutional investors leave the market leaving affordability. host:bubble that could burst? guest:case where there was artil demand. and 2005 with those risky subprime loans with changing interest rate. buy a home, low monthly payments. then it checks out later and

people cannot handle those. , since the devastation of the subprime crisis, policymakers listen to can we blend in with common bill, ability to repay.■x you can only borrow money if you can demonstrate the ability to pay. one cannot stretch the budget. we the lowest foreclosure rates of all time in america. host: eric in las vegas, homeowner. caller: c-span. circumstances of the market ebb and flow and we all know that. losers. in 2008 my wife and i lost everything. we had it going really well. ere one of the

people that went down. 2018 feet, we got into a wonderful0,000. at home just appraised at $418,000. we have a pool in the backyard. i am a long-haul truck driver. if is go i have ai will never let go of . i see people that arefor me lifd market. las veg, only have home prices risen the job market is strong which means it is almost a sure there in the las vegas region.

local job market conditions. down see price decline for long periods. we6 pple working today compared to pre-covid highs. the job creation is potential housing demand. i think demand is not realized because of affordability challenges in high mortgage rates. host:ert in michigan, you rent, is that right? caller: that is correct. good morning. wanted to touch base on is i rent, i'ntedrom mom-and-pop for about 15 years and rented from a moand-pop for about 15 years. we can ever come up with enough

money to buy our own home. over the 15 years, the mom-and-pop we rented■2y took care of us. when they finally decided we ■s this for four years, we are done, we will could but they did sell all of their a corporation and that corporati -- it is a newer corporation. i would say isrporation type ofl starting on his own. when he bought it for the first year our rent stayed fine but our rent went up. everybody in the group that got sold tonotifications that the rs going up interest and inflation. he was spreading the cost on to us. ■■kit worriese that for people

$1000 for rent might be cheap in some areas but here in michigan that is pretty expensive, especi■ally in ru(!l people in l have aarp with any way of having rent, let albu home in the future. that is all i have to say. i agree■ heavily with the guy from texas. host: are you still there? ca --. host: you said this corporate apartment owner came rent, and s because of inflation? is high, 9 lawrence, take those numbers. gut: in certain localities numbers could be much larger than the national statistics. this is an exampleors are

taking advantage of the housing shortage situation. the questionsi the owners have my to sell whoever is offering the highest price? there mangon that. the policy angle is should the institutional investors as interetion? most first-time buyers because limited, they do not become mortgage interest deductions anymore. institutional investors they can deduct interest. first-time buyers? i mentioned about rent control how do we get the tenants to live in a home? it is rental subsidies.

we provide assistance for people to go to grocery stores and provide. rental subsidies is what we need for being able to hold rt.that . feeling it. some states like ohio want to limit presence. pc■ host: sacuse, new york. brenda, you own a home there. caller: i took advantage of the subprime mortgage in 2007 and bought a house for $68,000. it is six bedrooms, 3200 square feet paid for. why would i sell? move? ■5syracuse, i pay $4000 year for taxes.

why would i sell my house? i get called daily from invest■+ -- i tell them $1 million cash and they hang up on me. brenda. guest:w5 upstate new york most s of the country. someone who may be priced out of new york city or boston and they have that fortunate situation of working from home, whether it is a hybrid model or 100% remote and theyre unable to buy a home in new york city. customer service in rochester or other communities inyork, very . even inshe mentioned she bought for under8b $100,000, today prices have risen about $200,000.

it is still a most affordable region of the country. in midwe ari we e seeing more stability because it is very cincinnati, indianapolis, kansas city. other fast-growing areas like florida and we know how expee people are seeking out affordability. the job market dictates where they need to be. consider the next county or the other ates according to the natl assoe realtour second half of 24 is ratesin the predicted to remain above 6% -- mortgage rates predicted to remave 6% in 2025. median price incre. note -- me e pricsting to 400,000. home prices continue to rise.

where did you come up with the numbers? guest: we looked at l ofs that e sales. mortgage numbers are a dominant driver. one key move is we are beginning to see more inventory. we also have people with changing life circuho8b'" movin. lso have tnsider 40% of homeowners do not have mortgages. move if the circumstances dictate. related to the mortgage forecast indicated the likelihood of one rate cut this year. that is a change from what they id december when they set about four rate cuts. they are holdingwhatever is bei. we see the inflation metrics

ceti. the inflation rate is approaching 2%. i rates later this year and next year and that will drive the mortgage rates more. there is one big red flag. we have a massive federal budget deficit. the government is borrowing, borrowing. at mea lending and that is one of the reasons or 4% mortgage rate. think 6% is where it will settle down. host: michael in seattle. you rent. what is your rent in caller: i live in a 680 square-foot apartment marketed as a one bedroomut i.á door. it is more like a tokyo style one bedroom pay $3100 to live i8

116 area code in seattle. i worked in a military base in the area. my not keep up with the cost of living. my local state bill 2ington stae which did not pass. ■qone of the reasons it did not pass is because we have a lot of baby boomers that were fortunate enough to buy aome. host: do? caller:k fee issues. we have horrible rent increases. ■my rent has increased on averae of 12% to 13% a year. the housing bill is due improve

ability for tenants subject to the residential la act and manufactured mobile homes landlord act act -- landlord host: you are breaking up. it. that would be rent control. guest: one can see the sentiment ar are rising because of housing shortages. then the technology boom occurred in so you have all of the workers for microsoft, property and californians getting priced out of california moving into the seattle region which pushed up the housing one should have built more home to accommodate the rising population. seattle d ing shortage. find a way to build more homes d stize the rent and in

the or subsidies for the tenants are on their housing i wanted t- host:. caller: i wteomment. my observation of the housing market is -- people with the money participating are the oney else is losing. environment that is paying the tei think everybody knows what that phrase means. examples. the woods next to my parents house was developed and after that happene frogs, no more butterflies, no that at even close to the same level. host: we understood your point.

we will go to tony in north carolina. caller: thank you for taking my this is a little bit of a different question. o with -- there was some kind of lawsuibr realtors e who were selling their homes were having tos at 6%, 3% rent o agent and 3% rent to the seller'sfrom what i understy guest: there was a lawsuit and there was a settlement. first of all, when we take surveys of recent home b which we've been doing consistently for the past 40 years, 9% ofy they love their realtors. excellentrecommend their friendr

realtors. realtors understand the important of theseon it and theystan■vd the science behind it and they treat them like extended family memb the lawsuit sentiment occurred. is for first time buyers -- in theking for the ri. sometimes when the completion done, depending on the agency they worked with, they may even give a concession or maybe a commission rebate. now from mid august it is possible the buyer will be asked for the right home do they have additional money to get professional representation? someone may be unwilling to for the buyer agent.

rst time buyers are in a great position. given the history of, i just hope this does not impact negatively for minority first-time buyers were first-generation buyers. they are just looking for the right home. now they have to consider whether they need to come up with additional fees, and representation it would be taking advantage of by the home lawsuit the seller could say what? guest:commission with my realtos about what the right percent wobased upon that the seller agt would get some aunt and the seller agent would break your buyersgets concluded, then theyl

pay the buyer agent a certain amount. from the buyers perspective they do not have to worry about what the buyer agent was gettingd eis to come up with their own money or go■e■t solo which means theye in a vulnerable situation of getting taken advantage of by an interesting dynamic. let's see how it plays out. from the realtors, what i hear is they are entrepreneurs. some rules are fair, others ar/. ■(■m■