>> WELCOME BACK TO CHEDDAR
EVERYONE HERE IN NEW YORK CITY
RENT PRICES THEY'VE DROPPED
CONSIDERABLY DUE TO THE
CORONAVIRUS PANDEMIC SAME
HOWEVER CANNOT BE SAID FOR
HOMES ACROSS THE COUNTRY.
THE NATIONAL ASSOCIATION OF
REALTORS REPORTING THURSDAY THE
MEDIAN PRICE
FOR IT EXISTING HOMES IN EACH
OF THE 181 METRO AREAS TRACKED
BY
THE ASSOCIATION WAS HIGHER IN
THE 3RD QUARTER OF THIS YEAR
COMPARED TO A
YEAR EARLIER. JOINING US NOW IS
AND BRIAN GORMAN WHO IS THE
PRESIDENT AND CEO OF COLDWELL
BANKER SUCH A PLEASURE TO HAVE
YOU HERE WITH US ON THE SHOW WE
SPOKE BACK IN APRIL YOUR OWN
CLOSING BELL, AND YOU SAID THAT
HOME PRICES WILL NOT DECLINE
THE WAY WE SAW DURING THE GREAT
RECESSION. WHY ARE CONDITIONS
BROUGHT ON BY THE CORONAVIRUS
PANDEMIC MORE FAVORABLE PERHAPS
IF WE'RE GOING TO USE THAT WORD
THEN WHAT WE SAW OVER A DECADE
AGO.
>> YEAH, I APPRECIATE GOOD TO
SEE YOU AGAIN BRAD THANK YOU
APPRECIATE YOU HAVING ME AND I
THINK WHAT WE TALKED
ABOUT BEFORE MOSTLY COME TO
PASS WE REALLY TALKED ABOUT
FUNDAMENTAL DEMAND DRIVERS HERE
SO WE HAVE THOSE AFFORDABLE
MORTGAGE RATES, THE MOST
AFFORDABLE
IN HISTORY. BUT REALLY WHAT'S
DRIVING THE OVERALL HOUSING
DEMAND TODAY IS
FAMILY MOVES. SO THAT'S ALWAYS
LIFE EVENTS ARE ALWAYS THE
BIGGEST DRIVER OF FAMILY MOVES
IN WE HAVE THAT TODAY ENABLE
LARGELY BY REMOTE WORK. SO WE
HAVE PEOPLE WHO MAYBE ARE
RENTING WHO DECIDE PERHAPS I
CAN MOVE A LITTLE FARTHER OUT
IF THEY DON'T HAVE
TO BE IN THE OFFICE EVERY DAY
AND I CAN ACTUALLY AFFORD TO
BUY WE HAVE FAMILIES TO
SUDDENLY NEED SOME ROOM
HOME TO WORK OR GO TO SCHOOL
AND ARE LOOKING FOR SOMETHING
MAYBE A LITTLE BIT BIGGER
FAMILIES INVITING AN EXTENDED
FAMILY TO LIVE WITH THEM AT
THIS POINT IN TIME AS THEY HAVE
A LITTLE DIP RESPECTED TODAY
PERHAPS THAN THEY DID BEFORE
THE COVID EPIDEMIC
AND THEN FINALLY AN
ACCELERATION OF THE TREND OF
FOLKS WHO ARE SEEKING MAYBE
BETTER WEATHER OR BETTER TAX
CLIMATE MAYBE THEY'RE MOVING A
FEW YEARS AHEAD OF WHAT THEY
HAD SCHEDULED BECAUSE THEY CAN
CONTINUE TO WORK REMOTELY AND
JUST TRAVEL
BACK IN TO THE OFFICE ON
OCCASIONS WAS A VERY
FUNDAMENTAL DRIVERS WE'RE
SEEING RIGHT NOW DURING THE
EPIDEMIC MOST OF WHICH I THINK
WILL
CONTINUE BEYOND.
>> OK SO A FEW THINGS I GUESS
TO HELP KIND OF FRAMEWORK THE
REST OF THE CONVERSATION
AVERAGE PRICE FOR STARTERS AND
ARE BUYERS
CAN SING SOME OF THE SAME VERY
FACTORS THAT THEY WOULD HAVE
THOUGHT ABOUT PREPANDEMIC
WHETHER THAT BE THE TYPE
OF NEIGHBORS. HOOD OR THE
SCHOOL DISTRICTS. ALL THESE
OTHER KIND OF TERTIARY THINGS
THAT WE KNOW GET THOUGHT ABOUT
BY MANY HOME BUYERS BEFORE THEY
MAKE A PURCHASE.
>> ABSOLUTELY SO NUMBER OF
THINGS THAT HAVE ALWAYS BEEN
IMPORTANT CONTINUE TO BE
IMPORTANT SO FAMILIES WANT TO
KNOW WHERE THEIR KIDS ARE GOING
TO GO TO SCHOOL
FOR INSTANCE, BUT IN COVID
THEIR KIDS ARE GOING TO SCHOOL
REMOTELY MAYBE A LITTLE MORE
COMFORTABLE MOVING THEM.
DURING THE SCHOOL YEAR AS
OPPOSED TO PREPANDEMIC WHEN
THEY WERE GOING TO SCHOOL EVERY
DAY BUT THE CONCEPTS OF NEEDS
IN THE HOME. A COUPLE OF
BIGGEST DRIVER WE SEE ARE
NEEDING MORE OUTDOOR SPACE ARE
DESIRING MORE OUTDOOR SPACE AND
DESIRING MORE INDOOR OBVIOUSLY
HOMES GOT LARGER FOR QUITE SOME
TIME HERE IN AMERICA, BUT THEY
PLATEAUED
A BIT. WE'RE SEEING RIGHT NOW
IS A LOT OF DEMAND FOR EITHER
RENOVATION TO EXPAND HOMES OR
DEMAND FOR HOMES THAT HAVE
SEGMENT OF ROOMS
WITHIN THEM TO BE ABLE TO WORK
QUIETLY WHETHER IT'S SCHOOL
WORK OR BUSINESS WORK.
>> AND IN TERMS OF NEW HOMES
VERSUS EXISTING HOMES WHERE
YOU'RE SEEING THE AND THEN DO
YOU EXPECT THAT THERE WILL BE
SOME OVERFLOW INTO ONE CATEGORY
OR THE OTHER.
>> WELL I WOULD LOVE TO SEE
SOME OVERFLOW. I WOULD LOVE TO
SEE THE BUILDERS BE
ABLE TO SUPPLY MORE INVENTORY
TO THE MARKET FRANKLY WE
HAVEN'T BEEN GETTING AN UP NEW
HOME CONSTRUCTION, ESPECIALLY
AT THAT ENTRY LEVEL FOR QUITE
SOME TIME. BUT TODAY BECAUSE OF
THAT THE VAST MAJORITY OF THE
DEMAND IS REALLY ON THE RESALE
SITE SO IT'S ALL ABOUT HOMES
THAT
PREVIOUSLY EXIST AND THEY ARE
NOT STAYING ON THE MARKET FOR
VERY LONG DAYS ON MARKET IS
UNDER 3 WEEKS
RIGHT NOW HONESTLY, I'VE BEEN
DOING THIS A LITTLE WHILE AND
LOOKED AT DATA FOR A LOT LONGER
I HAVE NOT SEEN IT THIS
UNIFORMLY BRISK
IN SALES ACROSS THE COUNTRY AND
ACROSS PRICE POINTS REALLY EVER
BEFORE AND SO WE'VE ALSO SEEN
AND YOU KNOW NOT TO TAKE.
>> ANYTHING AWAY FROM WHAT
COLDWELL BANKER DOES OF
COURSE, BUT WE'VE ALSO SEEN
THIS RISE OF SOME OF THE
DIGITAL PLAT FARMS WHERE THEY
ARE THEY'RE TOUTING THE ABILITY
TO CHARGE LESS THAN WHAT'S IN
THE TRADITIONAL AGENTS WOULD
CHARGE AT A TIME LIKE THIS.
I GUESS IN THIS INDUSTRY HOW DO
YOU COMPETE AGAINST
SOME OF THE OTHER TECHNOLOGY
PLAYS THAT WILL GO OUT TO THEIR
INVESTORS AND SAY HEY WE'RE
HIGH-GROWTH COMPANY BECAUSE WE
RECOGNIZE THAT THE HOUSING
MARKET IF WE DO SEE A BOOM
AND GROWTH IN THE NUMBER OF
PURCHASES THAT ARE OUT THERE
THEN OUR PITCH TO
THOSE HOMEBUYERS IS BY SAYING
WE'RE GOING TO
TAKE LESS OF A CUT OR EVEN TO
THE SELLERS REALLY TAKE LESS OF
A CUT OF THAT SALE INTO THE
HOME BUYERS ARE NOT BE PAYING
THE SAME IN AGENT FEES.
>> SURE SO WE'RE ACTUALLY
SEEING RIGHT NOW WHEN YOU WOULD
EXPECT A MODEL LIKE THAT TO
PERHAPS GAIN TRACTION IS THE
EXACT
OPPOSITE SO WE'VE BEEN
INCREASING OUR SHARE WE JUST
REPORTED AN ABSOLUTE RECORD
QUARTER IN THE 3RD QUARTER BY
VIRTUALLY EVERY METRIC AND
THAT'S BECAUSE WE'RE SEEING
TODAY PEOPLE NEED A TRUSTED
ADVISOR REAL ESTATE AGENT
HOPEFULLY A COOL BANKER AGENT
NOW MORE THAN EVER TO REALLY
HELP THEM NAVIGATE. WHAT IS
AGAIN AND THEN
CREDIBLY BRISK INVENTORY MARKET
ME IF THEY'RE NOT CERTAIN AND
MAKE US STRONG OFFER ON A
PROPERTY THEY MOST LIKELY WILL
LOSE THAT UNITY AND TO GUIDE
THEM ON THE
SALES SIDE. SO REALLY IS ALL
ABOUT THE TRUSTED BY SKOL
BANKER AND OTHER FIRMS AS WELL
AS HAVE TO THINK WE'RE THE BEST
BRINGS
ALL THAT KNOWLEDGE OF THAT AND
WHAT ELSE CAN PROMISE AS WELL
AS ADDITIONAL SERVICES THAT
THEY'RE NOT IN ATTEMPTING
TO OFFER AND REALLY WHAT WE'RE
SEEING IS HOMEOWNERS AND
HOMEBUYERS RESPONDING TO THAT
BY SAYING I WANT IT AL