Bruce Norris is joined this week by economist Gary Watts. Bruce and Gary discuss Gary’s long history of forecasting in California, what surprised him in 2007, how the financing industry put the breaks on the low and high end inventory in California, psychology playing a role in the California real estate market, how this cycle was different from previous cycles, renting versus buying in the mind of a buyer, how much of the loan pool is subprime, how much of the subprime is really a problem, collateralized debt and the mess it has created, FHA and VA loans, how the new loan limits for FHA will hopefully help, how the change might hurt the median price, pent-up demand in certain parts of California, who make up these new buyers, the FED and the solutions they’ve tried to implement, how freezing the subprime might help or hurt the market, foreign markets and lending practices, which foreign country buys the most real estate in the United States, foreigners betting on a short-term weak dollar and a good potential for a rebound, and how the election could effect real estate.
Gary Watts has long been recognized as a forecasting expert by the real estate industry. His long-term analysis has also drawn the attention of the media due to his consistent accuracy. His Economic Outlook has been spotlighted in regional newspapers, including the Orange County Register and the Los Angeles Times. He has been seen on the PBS TV program Real Orange, he has been heard on the radio at KNX Money Talk and was featured in Fortune magazine. He holds a degree in economics with advanced studies in psychology from California State University at Sacramento. Gary’s economic forecast and lecture notes are among the information pieces most widely circulated by real estate agents in Orange County. Gary’s last speaking season drew over 17,000 real estate agents. His talks are also available in DVD and an English or Spanish CD format