On Monday October 3, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (15:16)
Ryan notes that mortgage rates remained at historic low last week. Louis notes that low interest rates help the housing market somewhat even if they are not helping the general economy. Louis notes that with a long term low interest loan the cost of home ownership can be lower than renting. Purchasing a home may make sense even if home prices decline if the purchaser locks in a loan interest rate as inflation will increase in the future as will rents. Ryan and Louis discuss real estate investment opportunities in areas where home values are severly depressed where homes can be bought and rented out for positive case flow. Louis notes the reluctance and rationale of banks to make loans and to foreclose on homes. Louis notes that banks are in effect wards of the state. Louis notes that low interest rates cause people to invest in overpriced stocks.Louis notes the the government is inefficient in allocating capital to banks and private entities and questions whether they should do so.
Part 2 (12:25)
Ryan notes that there is money to be made by lending and wonders why banks are not doing so. Louis notes that its easier and risk free just to invest the money in US Treasuries and make money instead on their trading operations. Louis notes that its hard to determine the solvency of US banks. Louis notes that mortgage debt is not being liquidated but rather is being traded among the banks and government sponsored entities. Ryan notes that there are still a large number of foreclosures in the market and more coming. Louis notes that the policies designed to prevent the housing market from collapsing are just prolonging the pain. Louis notes that markets needs to collapse in some instances. Louis notes that not only is stimulus not working it is also adding to the debt. Ryan discusses the implication of the Greek debt crisis and notes that investors react by purchasing US Treasuries which has the result of keeping interest rates low. Louis notes that Europe is not yet allowing Greek debt to default. Louis notes that the kicking the can down the road and making the road longer doesnt change the fact that the road is a dead end. Louis notes that low rates and stimulus are not the answer. Louis notes that the DC metro area benefits from and will continue to benefit from a robust job market due to plentiful government jobs and government contracts with no plan on the horizon to cut Federal spending. Louis expresses no faith that the 12 member Congressional committee will come up with meaningful cuts and concludes that the DC metro area job market will continue to do well. Ryan expects the national unemployment situation to get much worse. Louis notes that even if the layoffs subside doesn’t mean that hiring will begin. Louis also notes that the unemployment rate doesn’t count people who have given up looking for a job and for the long term unemployed. Louis notes that young people are unemployed in greater percentages and this is preventing them from getting job training and they have college loans which makes their situations more untenable. As a result younger people will be deferring home purchases.
Part 3 (12:05)
Ryan notes that the consumer sentiment rose last week. Ryan notes that perhaps falling gas prices had an impact on consumer sentiment. Ryan note that those that make $240K have cut their spending according to a Gallop poll. Ryan asks what should the government do to encourage these people to spend. Louis remarks that the government should not do anything. Louis notes that when people are in debt they should not be encouraged to take on more debt. Louis notes that small business are not spending due to uncertainty and excessive regulation. Louis and Ryan discuss the efficacy of taxing the rich. Louis notes that if the troops came home the economy would receive a jump start.
Part 4 (8:40)
Louis let’s listeners know how to get an instant free home valuation on HomeGain.com. Louis and Ryan discuss how home valuations are calculated and discuss comparable home sales.
Listen to other Real Estate Radio shows with Louis Cammarosano
Listen to the Real Estate Radio show of September 26, 2011
Listen to the Real Estate Radio show of August 8, 2011
Listen to the Real Estate Radio show of July 25, 2011
Listen to the Real Estate Radio show of July 11, 2011
Listen to the Real Estate Radio show of June 27, 2011
Listen to the Real Estate Radio show of June 20, 2011
Listen to the Real Estate Radio show of May 23, 2011
Listen to the Real Estate Radio show of May 16, 2011
Listen to the Real Estate Radio show of May 9, 2011
Listen to the Real Estate Radio show of May 2, 2011
Listen to the Real Estate Radio show of April 25, 2011
Listen to the Real Estate Radio show of April 18, 2011
Listen to the Real Estate Radio show of April 11, 2011
Listen to the Real Estate Radio show of March 21, 2011
Listen to the Real Estate Radio show of March 14, 2011
Listen to the Real Estate Radio show of February 28, 2011
Listen to the Real Estate Radio show of January 24, 2011
Listen to the Real Estate Radio show of November 29, 2010
Real estate radio interviews also available on Youtube
About the Real Estate Radio Network
The Real Estate Radio Network® is a nationwide alliance of real estate related professionals with a common objective: delivering the timely truth about local Real Estate Markets over local radio stations.
The Real Estate Radio Network brings hard-working and ethical professionals in a community together. We provide the media and forum necessary for Consumers to learn the truth about important aspects of their financial life, which is mostly centered around their biggest investment, the home they live in. The Real Estate Radio Network® brings each radio program to the audience with a “live and local” show hosted by well-respected members in the local Real Estate and Financial community.
About Ryan Sloper
As a highly motivated mortgage consultant, with more than nine years of mortgage lending experience, Ryan Sloper has acquired a solid understanding of the local and national real estate markets. Ryan has been investing in residential and commercial real estate for the last 5 years, where he has first hand knowledge of what it takes to be a successful real estate investor. Ryan also hosts a weekly radio show, Real Estate Radio, which airs every Monday on 1580 AM in the Washington, DC Metro Area. Real Estate Radio also streams live nationally @ http://whfs.cbslocal.com/shows/real-estate-radio-with-ryan-sloper/