Jp Peach Anini, Texas, JIM discussed on Jim Bohannon
We've been talking with JP peach Anini, he is the CEO and founder of JP and associates realtors based in the plano, Texas area near Dallas and looking at what I thought going in was rather straightforward story of the big dip in existing home sales. But now we're told that that was followed by an even larger increase in the sales of new homes. Are we in fact, talking about an economic indicator at all here? In other words, this is too much being made of the dip in existing home sales. Real estate makes news, and that's a wonderful thing. And it is important shouldn't shouldn't make this. I guess that's the question. Should it? Make those yes, it's a huge real estate is a huge GDP indicator. But as existing home sales declined new cells increase you've got to look at the average to in the end, we're posting positive games. The biggest indicator that we're looking for that has been posted. Yet is coming home. Did we sell in two thousand eighteen do we have an increase over twenty seventeen or or do we have the beginning of the decline that everybody's waiting for for this to happen? And whether it's twenty nineteen or whether it was twenty eighteen what was the apex for the real estate market at the cyclical the cycle of the real estate market is about ten years long. This has been extended for quite a while. Now, the increase really started in two thousand nine hundred thousand and ten when the market rebounded were obviously in a very extended curve. Of positive gains for for this market. We know eventually gonna come down. And everybody's just wondering if the predictions is this year or in the next couple of years, and I think that varies by market by market, of course, in Texas. All right, so total total housing sales is a better indicator than than new sales or or or existing home sales total sales. That's the that's the key in which case. It sounds like it's a wash in that. The maybe there was some shift in terms of whether they were new or used, but the total home sales didn't change that much. In other words, I guess. I'm trying to understand is why why is this a big story it sounded to me like it was a a major drop in in real estate. And and. Is that not the case? Here's everybody that all of us that don't real estate maybe wanted nine, Jim. I don't funeral state. Yes. And it's not for sale. So these sorts of things. These sorts of things happened to me, and I don't pay any attention. If you're not in the market. You know, I mean, I couldn't I if the price of my house went up twenty or drop twenty grand last week. I wouldn't even know, you know, you wouldn't care right. And I wouldn't care. No. We're not selling. So, you know, either way. I it doesn't matter to me. Yeah. Most most homeowners heart. So rooted as you are Muslim owners rely a lot of their home equity for potentially a of credit, but mainly for that trigger that indicator to say, okay, now, we can sell and we've been very very fortunate again because we've been such a automating real estate market since two thousand nine hundred thousand ten that people have built equity it wasn't until about a year and a half ago that we were in positive gains and every single market post recession post real estate recession where everybody that had lost equity in the in the crash regained it right back. So there's equity in every market the days of two thousand seven eight crasher behind us. So, you know, equities important. Well, we wanna see is home prices. The oil supply and demand economical curves. So let me ask you about that to what extent is this driven by price. Again. It's not like, I'm I'm I'm sitting here. And again, obviously as the apparently, very atypical buyer. I'm buying it's because some circumstance has forced me to buy is not like, gee, if the price is right. I'll buy a house is that is that what motivates some people? They feel like again homes are consumer goods out of this morning that this in this economy, if they feel like they're getting a deal if they feel like they can afford it. They feel like it is something that is learn them to to to purchase. And and being consumed homes will sell unfortunately, you can't sell what's not for sale. What we've really happened. The story. That's been real good news for now. A couple of years till now until recently where we finally had some some kind of inventory. That's not get carried away by saying we have an excess inventory because we really still don't we have a very very limited inventory in the lower price ranges..