Tags: Kathy Fettke | housing | bubble | price

Real Wealth Network's Kathy Fettke: Housing-Price Bubble Has Eased

By    |   Friday, 22 November 2013 10:16 AM

The housing bubble that was brewing during the summer has calmed down, says Kathy Fettke, founder and CEO of the Real Wealth Network, a California real-estate services and consulting company.

"That was a real big problem, mostly in California, but really across the board," she told Newsmax TV in an exclusive interview. "When people see home prices go up, they get excited, they see money, and they want to jump into the market."

Sellers also get excited. "So a lot of sellers have raised prices beyond what a buyer's able to afford. And we're going to see those sellers have to lower their prices to something that's a little bit more affordable," Fettke said.

Watch our exclusive video. Story continues below.



The slowdown is "a good and healthy thing for this market," she said. "We are very much looking forward to a slowdown, because these double-digit price increases aren't really good for anyone."

Editor’s Note:
Obama Donor Banned This Message (Shocking)

Still, the housing market remains strong, Fettke says. "Supply is low, demand is high, prices are going up."

As for the threat of another government shutdown in January, Fettke says the issue for the home market would be lost salaries and jobs.

"If there's a government freeze again, that's a lot of people who don't get paid, and they're not really thinking about buying homes when they don't have a paycheck," she said.

The real concerns for homebuilders now are rising prices and rising interest rates, Fettke says.

"They have some concerns about whether people will be able to afford their property," she said. "What that means is that existing home prices are still the better deal. They're cheaper than new homes."

So that's probably what home buyers will choose. "Builders have to be careful, but in some areas, there's huge demand," Fettke said.

As for geographic trends, "we have to look at incomes versus home prices," she said.

"The coastal markets are always a little off-whack because they're very desirable places to live, and home prices go up."

That's what's happening in San Francisco and San Jose, Cal. with both the home purchase and rental markets, Fettke says. "It's just getting too expensive."

It's also hard to build in those markets, she says. "The permitting process is very difficult in most of California," Fettke said.

"It makes it a very long and drawn out process for builders to come in and create new inventory. So California's going to remain expensive."

In Texas, home prices, while rising, are still quite affordable, Fettke says. And the same is true of most of the country between the coasts, she maintains.

The areas that are suffering are those where job growth is weak, Fettke says. "It all comes down to the ability to pay. And that's one of the big issues we're going to be seeing in January when the new regulations come out for mortgages."

She's concerned about mortgage qualifications becoming too restrictive.

Editor’s Note:
Obama Donor Banned This Message (Shocking)

Related Stories:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
The housing bubble that was brewing during the summer has calmed down, says Kathy Fettke, founder and CEO of the Real Wealth Network, a California real estate services and consulting company.
Kathy Fettke,housing,bubble,price
552
2013-16-22
Friday, 22 November 2013 10:16 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved