Charles Schwab’s Liz Ann Sonders joins TheStreet to share her thoughts on the state of the housing market.
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00:00What do you see from the latest housing data? What does it tell you about the health of the
00:03housing market? You know, the housing cycle in this, let's say, odd pandemic era has been really
00:10unique because during the early part of the downturn, the downturn was felt most acutely
00:18on the sales side, particularly in existing homes, because of how many homeowners were
00:23essentially locked into their homes because they had fixed rate mortgages at a much lower level
00:28than where the stated mortgage rate was. And you continue to see, even though sales have recovered,
00:34fluctuations in terms of sales. Prices, though, have been stickier. And I think that that's
00:41the supply demand imbalance, especially with existing homes, which represent
00:46more than 80 percent of the home market. And because of how many homeowners are locked in
00:52and that's restrained supply on the existing side and we can't build supply fast enough on
00:58the new home side, that has kept prices more elevated. So you get these swings a little bit
01:05more on the sales side, but not as much on the prices side. So I think that's, again,
01:11the unique characteristics of this very funky cycle, to use a technical term.
01:22Thank you.