WEBVTT - Coldwell Banker's Young on 2016 Home Listing Report (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleven Brio to Washington,

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<v Speaker 1>d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco,

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<v Speaker 1>Bloomberg nine to the country. She is at DAMN Channel

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<v Speaker 1>one nineteen and around the globe the Bloomberg Radio plus

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<v Speaker 1>dav and Bloomberg dot Com. This is taking stock from Saratoga,

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<v Speaker 1>California to Detroit, Michigan. There's several We'll get a couple

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<v Speaker 1>of thousand miles in between. There's also a very large

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<v Speaker 1>price gap. The average cost of a homeward almost two

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<v Speaker 1>and a half million dollars in Saratoga. That's because of

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<v Speaker 1>Silicon Valley. Compare that with Detroit, Michigan sixty four thousand dollars.

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<v Speaker 1>We're gonna be speaking to the new CEO of Coldwell

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<v Speaker 1>Banker about their latest survey and housing market sentiment. I'm

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<v Speaker 1>Kathleen Hayes and I'm Pim Fox. Let's go right now

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<v Speaker 1>to Charlie Pellett in the Bloomberg newsroom for Bloomberg Business Flaghand.

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<v Speaker 1>I think very much, Pim Fox. We have got twenty

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<v Speaker 1>nine minutes to go ahead of the close this update. Bronch,

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<v Speaker 1>you buy National Realty Managers of New York City cash

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<v Speaker 1>Flow real Estate, providing you twelve percent annualized returns with

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<v Speaker 1>immediate monthly distributions. See them at n r i A

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<v Speaker 1>dot net. Stocks slipping from near records after European Central

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<v Speaker 1>Bank President Mario Draggy downplayed the need for more stimulus

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<v Speaker 1>measures to bolster growth. And now we've got the SMP

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<v Speaker 1>down four points to twenty one, a drop there of

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<v Speaker 1>two tents of one percent. Down, industrials down forty six,

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<v Speaker 1>a decline of three tents of one percent, and has

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<v Speaker 1>stack down twenty three, a drop of four tents of

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<v Speaker 1>one percent. The tenure down twenty thirty seconds had yield

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<v Speaker 1>one point six one percent, Gold down seven fifty the

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<v Speaker 1>ounce the thirteen thirty seven to drop there of six

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<v Speaker 1>tents of one percent. Crude oil surging four point three

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<v Speaker 1>percent after the inventories report up a dollar nightt six

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<v Speaker 1>of arrel West Texas Intermediate now at forty seven forty seven.

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<v Speaker 1>If you want to put your finger on the pulse

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<v Speaker 1>of the global economy, to talk to an airline executive,

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<v Speaker 1>Bloomberg News spoke this morning with Sir Tim Clark, President

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<v Speaker 1>of Emirates it's tough and at the moment is getting

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<v Speaker 1>a little bit tougher. The global economy is is patched geographically.

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<v Speaker 1>We see full off in GDP in many of the

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<v Speaker 1>country to developing markets that we thought would come ahead

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<v Speaker 1>and move ahead happen South America, Africa to the extense.

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<v Speaker 1>So we're having to deal with that. But that's not

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<v Speaker 1>to say that people are still traveling an airplanes. They are,

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<v Speaker 1>but they're paying us less, so I'll yields a down.

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<v Speaker 1>The result of that Pier one imports falling the most

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<v Speaker 1>in nearly nine months after the home furnishings retailer said

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<v Speaker 1>at second quarter loss would be wider than expected. And

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<v Speaker 1>now at three thirty two on Wall Street, let's look

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<v Speaker 1>at the other stories making news. Thank you Charlie from

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<v Speaker 1>the Bloomberg Newsroom. I'm Joel Schneider. This news update is

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<v Speaker 1>brought to you by Blue Jeans Primetime. All Hands meetings

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<v Speaker 1>get prime Time free for your next all hands. Speaking

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<v Speaker 1>to reporters in White Plains this morning, Democratic presidential nominee

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<v Speaker 1>Hillary Clinton bashed Donald Trump for his praise of Russian

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<v Speaker 1>President Vladimir Putin. Clinton says many former presidents would be

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<v Speaker 1>left shaking their heads. What would Ronald Reagan say about

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<v Speaker 1>a Republican nominee who attacks America's generals and heaps praise

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<v Speaker 1>on Russia's president? I think we know the answer. According

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<v Speaker 1>to the Purple Slice online poll for Bloomberg Politics, Trump

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<v Speaker 1>is backed by fifty of whites with no more than

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<v Speaker 1>a high school diploma, compared to thirty three percent for

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<v Speaker 1>Hillary Clinton. The Smithsonian has nabbed a big name for

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<v Speaker 1>the opening ceremony of its new museum. Nathan Hagar has

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<v Speaker 1>details from the Bloomberg newsroom in Washington. It's none other

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<v Speaker 1>than President Obama. The Smithsonian confirms, the nation's first African

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<v Speaker 1>American president will speak at the opening ceremony of the

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<v Speaker 1>National Museum of African American History and Culture on septembery.

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<v Speaker 1>Joining the President at the festivities, first Lady Michelle Obama,

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<v Speaker 1>former President George W. Bush and his wife Laura, Chief

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<v Speaker 1>Justice John Roberts, and civil rights icon Georgia Congressman John Lewis.

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<v Speaker 1>Nathan Hagar, Bloomberg Radio Washington officials unveiled a design today

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<v Speaker 1>for a performing arts center at the World Trade Center site.

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<v Speaker 1>It will be called the Ronald O. Perlman Performing Arts Center.

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<v Speaker 1>Perlman donated seventy five million dollars to revive plans to

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<v Speaker 1>build the center. Global News twenty four hours a day,

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<v Speaker 1>powered by more than journalists and analysts in more than

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<v Speaker 1>one twenty countries. I'm Jill Schneider. This is Bloomberg, Charlie,

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<v Speaker 1>and we thank you. In the SMP five hundred index

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<v Speaker 1>down four now a drop of two tenths of one

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<v Speaker 1>percent down, Industrials down forty seven, a decline of three

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<v Speaker 1>tenths of one percent. I'm Charlie Pelt. That's a Bloomberg

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<v Speaker 1>business flash. You're listening to taking Stock with Kathleen Hayes

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<v Speaker 1>and Pim Fox on Bloomberg Radio. Hey man, I'll be

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<v Speaker 1>too surprised to learn that the top ten most expensive

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<v Speaker 1>markets are actually all in one state and one part

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<v Speaker 1>of one stadium. Talking about cal Fornia Silicon Valley and

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<v Speaker 1>actually looking at the latest survey of Cold World Banker

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<v Speaker 1>real Estate It's home Listings report, and uh, look at

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<v Speaker 1>again the most expensive, the most affordable markets were happy

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<v Speaker 1>to welcome now to the show. Charlie Young. He's the

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<v Speaker 1>relatively new president and CEO of Cold Cold Banker real Estate. Charlie,

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<v Speaker 1>welcome to the show. Well, thanks to bringing I'm very

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<v Speaker 1>happy to be here with you. Well, and you're at

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<v Speaker 1>a company that you've worked at for some time, worked

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<v Speaker 1>out and you've certainly been in real estate over the years,

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<v Speaker 1>so this is I'm sure it's an achievement for you

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<v Speaker 1>to to reach this head possession. What do you most

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<v Speaker 1>want to do as CEO of Cold World Banker. Well,

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<v Speaker 1>I'll tell you what the Coal Banker brand is is

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<v Speaker 1>one of the great brands, not only in real estate,

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<v Speaker 1>but in in American culture, where a hundred and ten

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<v Speaker 1>years in running, we're going strong. And I think for me,

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<v Speaker 1>my focus is on how do we point the brand

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<v Speaker 1>forward in UH into the future. A lot of change

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<v Speaker 1>happening in real estate markets, a lot of change happening

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<v Speaker 1>with consumers as well, and want to make sure that

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<v Speaker 1>we're best positioned to serve those consumers going forward. Charlie Young,

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<v Speaker 1>what is the Home Listing Report? What does it tell

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<v Speaker 1>us about homes in the United States? Well, I'll tell

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<v Speaker 1>you why. First, let's let's start here. The Home Listing

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<v Speaker 1>Report is a comparison. In fact, we believe it's the

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<v Speaker 1>most comprehensive home price in comparison tool on the market.

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<v Speaker 1>And what we do is we take a four bedroom,

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<v Speaker 1>two baths home and we we compare that price markets

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<v Speaker 1>across the United States. And so what it does is

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<v Speaker 1>it gives consumers a great sense of what we would

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<v Speaker 1>consider would be the average aspirational housing for the average

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<v Speaker 1>American family today, and we can compare that market to market. Well,

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<v Speaker 1>this goes to show your your challenge to me in

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<v Speaker 1>California then, because the average aspirational American probably is not

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<v Speaker 1>thinking of spending over a million dollars. But if you're

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<v Speaker 1>anywhere along the coast of California, if you're around on

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<v Speaker 1>Silicon Valley, uh in your top ten most expensive plas

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<v Speaker 1>Gatos one point four seven million, Saratoga two point four five,

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<v Speaker 1>I'm assuming you can sell, you know, as long as

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<v Speaker 1>the as long as the Silicon Valley continues to be

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<v Speaker 1>what it is and the money keeps flowing, you're fine.

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<v Speaker 1>But when you look at the rest of California, is

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<v Speaker 1>it is it a little bit more challenging because so

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<v Speaker 1>many people have been priced out of the market. Well,

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<v Speaker 1>I'll tell you what I think you're You're right on

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<v Speaker 1>relative to our top ten. When you look at Sarahtoga

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<v Speaker 1>California at two point five million dollars, that is a

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<v Speaker 1>big price point. But understand this, it is right down

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<v Speaker 1>the street from Apple, Google, UH and Facebook. It is

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<v Speaker 1>the epicenter of Silicon Valley. And you've got all of

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<v Speaker 1>the things that be to a really hot real estate market.

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<v Speaker 1>You've got great jobs, high paying jobs. You have little

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<v Speaker 1>room for new development so there's limited housing stock. You've

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<v Speaker 1>got great lifestyle UH and and quality of life sting

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<v Speaker 1>in California you can be outdoors twelve months and year.

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<v Speaker 1>So all of those things point to a really rich marketplace.

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<v Speaker 1>When you look at California as a whole, at average

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<v Speaker 1>sales prices in the low five hundred thousands for the

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<v Speaker 1>entire state of California, and then if you look at

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<v Speaker 1>the entire homeless the report UH the average sale price

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<v Speaker 1>for markets for U four bedroom, two bath home is

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<v Speaker 1>three hundred and twenty thousand dollars. I think the thirteen

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<v Speaker 1>hundred markets in the United States that you can live

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<v Speaker 1>in for that price or less. So you know, America

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<v Speaker 1>is still a very affordable country. And as it relates

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<v Speaker 1>to housing now, I noticed that as far as the

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<v Speaker 1>ten most affordable markets, So one of the things to

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<v Speaker 1>note is that they are within commuting distance to major

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<v Speaker 1>metropolitan regions. Tell us about where to go in Florida

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<v Speaker 1>and Georgia if we want affordable housing. Well, if you

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<v Speaker 1>look at that list of the top ten most affordable,

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<v Speaker 1>number ten comes in and in a town called Plotka, Florida.

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<v Speaker 1>It's within hour's drive of Jacksonville, Florida. Jackson's got a

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<v Speaker 1>good economy that's got a strength and health care, in

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<v Speaker 1>shipping and in military. And so if you are someone

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<v Speaker 1>who's just getting started out and you don't mind a

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<v Speaker 1>little bit of a commute, Pelca, it's a great a

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<v Speaker 1>great spot to be. In Georgia, it's Augusta, Georgia, and

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<v Speaker 1>I think when we think of Augusta, we think of

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<v Speaker 1>the Master's Um, and there's a great quality of life,

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<v Speaker 1>great culture in that city as well. But I think

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<v Speaker 1>there's a theme here too. If you look at the

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<v Speaker 1>most expensive markets and the most affordable markets, there is

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<v Speaker 1>a common theme, and that is close access to jobs, culture,

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<v Speaker 1>quality of life. It can be had at both ends

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<v Speaker 1>of the spectrum. Well, I know, were Pennsylvania and scrant

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<v Speaker 1>Pennsylvania really well, and I would submit to I don't

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<v Speaker 1>think they're close to anything much bigger themselves, but they're

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<v Speaker 1>growing and interesting. Uh communities. What is your biggest hope?

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<v Speaker 1>Are you hoping that some new kind of transportationally built

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<v Speaker 1>so that people can find homes in affordable areas but

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<v Speaker 1>commute quickly, easily and cheaply to some of these larger metropolitans.

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<v Speaker 1>Area is that in many cases are going to be

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<v Speaker 1>an hour or two hours away. Now, I think really

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<v Speaker 1>with it with a homeless report, we're trying to provide

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<v Speaker 1>information that it's useful to consumers. So often when we

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<v Speaker 1>look at pricing and housing in America, which becomes the

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<v Speaker 1>focus on the ultra high end, we also look at

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<v Speaker 1>media and the household cost of a house, which is

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<v Speaker 1>stewed often by a marketplace because you're taking the average

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<v Speaker 1>and not uh you know this this aspirational family home

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<v Speaker 1>of four beds, uh two baths, and so I think

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<v Speaker 1>like you can get you know, for instance, you can

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<v Speaker 1>get the entire lists at Coldball Banker dot com backt

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<v Speaker 1>uh slash um HLR and that the consumer is a

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<v Speaker 1>good sense of where their market banks or where they

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<v Speaker 1>might be thinking of of moving. Thank you very much.

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<v Speaker 1>Charlie Young is the president and the chief executive of

0:10:52.080 --> 0:10:57.000
<v Speaker 1>Cold World Banker real estate subsidiary of Religy. This is

0:10:57.040 --> 0:11:08.640
<v Speaker 1>Bloomberg fiduciary advisor, fiduciary responsibility, fiduciary rules. Are they doing enough?

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<v Speaker 1>Maybe not coming up? Elliott Wislooth of High Tower Advisors

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<v Speaker 1>on Luberg Radio