>>
>> FACTS
>> FACTS NOT FEAR, JORDAN JOINS US, HE IS THE DEPUTY CHIEF ECONOMIST, THE CALIFORNIA
ASSOCIATION OF REALTORS.
GLAD YOU ARE HERE, AND
OBVIOUSLY YOU KNOW, A LOT OF
PEOPLE ARE WONDERING, IS THIS A
GOOD TIME TO BUY, SELL, WHERE
ARE WE WITH THIS SITUATION
RIGHT NOW?
>> AS ALWAYS, IT COMES DOWN TO
INDIVIDUAL CIRCUMSTANCE, THE
MARKET HAS BEEN STYLING A
LITTLE BIT, BECAUSE WE CAN'T DO
THINGS LIKE OPEN HOUSES, ETC.
BUT, IN THE CONTEXT OF GOOD
TIME TO BUY AND SELL, YOU
ALWAYS WANT TO LOOK AT IT IN
THE CONTEXT OF YOUR OWN
PERSONAL FINANCIAL SITUATION,
FROM A MACRO STANDPOINT, RATES
ARE VERY LOW, AND THAT IS
ATTRACTIVE.
I THINK THE LONG-TERM PROSPECTS
FOR HOME OWNERSHIP, AND
BUILDING EQUITY, ARE STILL
THERE, AND YOU JUST HAVE TO
WEIGH THAT AGAINST AGAIN, HOW
YOU FEEL ABOUT YOUR JOB AND
YOUR INCOME, ETC.
>> IT IS LIKE LOOKING DOWN THE
ROAD. WILL THE HOUSING MARKET
CRASH AFTER CORONAVIRUS, OR IF
IT WERE TO CRASH, WOULD IT HAVE
CRASHED ALREADY?
>> YOU KNOW, I AM ACTUALLY
OPTIMISTIC FOR HOUSING IN
PARTICULAR COMING OUT OF THIS.
AGAIN WE ARE IN A VERY LOW
RATE, ENVIRONMENT, WHEN YOU
LOOK AT IT FROM THE CONTEXT OF
THE FUNDAMENTALS HERE IN
CALIFORNIA, WE HAVE GOT AN
ECONOMY THAT HAD BEEN GROWING
PRETTY ROBUSTLY, THIS IS NOT
LIKE A 2007, WHERE WE HAD DEEP
FUNDAMENTAL ISSUES THAT NEEDED
TO BE WORKED THROUGH, THIS IS
REALLY AN EXTERNAL THING THAT
IS AFFECTING THE MARKET, AND SO
ONCE WE GET PAST THIS KIND OF
HOPEFULLY A TEMPORARY ISSUE,
THE HOUSING MARKET IS ACTUALLY
LOOKING PRETTY GOOD FROM MY
STANDPOINT.
>> THAT IS GOOD TO HEAR.
THIS IS GENERALLY A TIME WHERE
IF YOU GO TO SELL THE HOUSE,
SPRING, PEOPLE ARE OUT KIND OF
WANTING TO LOOK AT HOMES.
IT IS NICE OUT, FOR SELLERS,
THIS NEXT ONE COMING IN, SHOULD
I HOLD OFF?
>> YOU KNOW, ONE OF THE THINGS
THAT WE HAVE SEEN, IS THAT
THINGS HAVE TAKEN A STEP BACK
BOTH IN TERMS OF SALES, AND NEW
HOMES COMING ONTO THE MARKET.
THAT BEING SAID, WE ARE STILL
SEEING DEALS GET DONE.
IN FACT THE AMOUNT OF INVENTORY
HAS COME DOWN A BIT MORE, THEN
SALES, WHICH SUGGESTS THAT
INVENTORY WAS AS TIGHT AS IT
WAS GOING INTO THIS THING.
FOR FOLKS WHO WANT TO SELL OR
HAVE TO SELL OR WHAT HAVE YOU.
WE ARE ON A FAIRLY INVENTORY
CONSTRAINED ENVIRONMENT FOR
THOSE BUYERS WHO WANT TO MAKE
THE MOVEMENT.
>> WHAT ABOUT FIRST-TIME
BUYERS?
THEY ARE GENERALLY LOOKING FOR
YOU KNOW, MAYBE A TWO AND ONE
OR SOMETHING LIKE THAT.
WHAT SHOULD THEY BE LOOKING AT
RIGHT NOW?
>> I THINK THE POTENTIAL TO
LOCK IN A LOW RATE AS LONG AS
YOU FEEL COMFORTABLE ABOUT YOUR
JOB AND YOUR EARNING POTENTIAL
AND YOU WILL BE ABLE TO MAKE
THAT PAYMENT MOVING FORWARD, I
THINK THAT LOW RATES ARE HUGE,
I USED TO JOKE THAT MY DAD
WOULD BRAG ABOUT HIS 12 1/2%
MORTGAGE INTEREST RATE, BACK IN
THE 80s, AND SO FROM THAT
STANDPOINT, HE WOULD HAVE LOVED
TO BEEN ABLE TO GET A 3.3 OR
3.25, WHICH WE SAW JUST THE
OTHER DAY.
THAT CONVERTS INTO A LOT OF
SAVINGS OVER THE LONG HAUL,
AGAIN ASSUMING THAT YOU ARE
ABLE TO CONTINUE TO MAKE THOSE
PAYMENTS.
>> HERE IS A GOOD ONE, JUST
COMING IN NOW.
YOU ARE HAVING AN OPEN HOUSE,
YOU WANT TO SELL THE HOUSE, BUT
THERE IS THE CORONAVIRUS ISSUE,
HOW DOES THIS HAPPEN NOW?
>> ONE OF THE THINGS THAT WE
HAVE SEEN, AND OF COURSE IT
VARIES KIND OF JURISDICTION BY
JURISDICTION, AND EVERYBODY HAS
GOT THEIR OWN SET OF RULES, BUT
ONE OF THE THINGS THAT WE HAVE
SEEN FOR FOLKS WHO HAVE BEEN
ABLE TO GET TRANSACTIONS
COMPLETED, IS THAT THEY ARE DUE
DOING A LOT OF WORK REMOTELY
AND ONLINE.
THERE'S A LOT OF TECHNOLOGY OUT
THERE THAT LETS US DO 3-D WALK-
THROUGHS AND VIRTUAL TOURS, AND
THERE ARE WAYS TO BE ABLE TO
SEE A PROPERTY OF COURSE YOU
CAN GO SEE A VACANT PROPERTY,
IF NOBODY IS OCCUPYING IT.
THAT IS I THINK AGAIN, CASE-BY-
CASE IN THE JURISDICTION, BUT
THAT IS ANOTHER OPTION AS WELL.
IT AGAIN FORTUNATELY WE HAVE
SOME TECHNOLOGY THAT WE CAN
USE, SO THAT YOU CAN GET A
SENSE OF WHAT YOU'RE ACTUALLY
BUYING.
>> ESPECIALLY IN THIS DAY AND
AGE.
WE HAVE ABOUT 15 SECONDS, IF
SOMEBODY CAN'T AFFORD TO PAY
THEIR MORTGAGE DURING THIS
TIME, WORK WITH THE BANK, IS
THAT YOUR SUGGESTION?
>> ABSOLUTELY.
THERE IS A LOT OF OPTIONS OUT
THERE, FOR BORROWERS, IN TERMS
OF FORBEARANCE, AND I THINK
THAT WE ARE IN A VERY UNIQUE
TIME AND THE LENDERS ARE
WILLING TO WORK WITH US, AND
THERE HAS BEEN DEALS WORKED OUT
BY THE GOVERNOR, TO HELP ENSURE
THAT