Video Transcript:

GLORIA PENNER (Host): As the economy continues struggling and people are still figuring out how to make ends meet, there are some signs that brighter days may be ahead. The stock market has made a nice recovery, but what about the housing market? Joining me with his opinion on home buying and selling and what it all means is Tom York, contributing editor for the San Diego Business Journal. How would you describe the current state of the housing market locally?

TOM YORK (San Diego Business Journal): Well I would say it's where it has been for the last year - it has been bumping along at the bottom. We've seen statistics which show that the housing prices - the median prices - pretty much stayed the same for almost the last year.

PENNER: So are there any positive indicators that would give you a sense of optimism?

YORK: Well I think the positive indicator is that it hasn't gone down. It has basically stayed the same. So I think the market is in a kind of a stasis and it's waiting for some better news. Maybe more higher employment to kind of come along and pick it up a little bit.

PENNER: So when you say 'pick it up' and 'better news,' you mean that prices would go up, sales would go up? Is that considered a better market?

YORK: Well, there's some indication that prices are already on the upswing. You know, modest increases here and there. But I think what we really have to see is-- we have to see a recovery in the jobless market. The jobless rate right now is at record highs here in California, very high in the state. And we're going to need to see more people  working and contributing to the economy before they're going to go out and buy houses. And that's just the way it's going to be for I would say the next six months to a year.

PENNER: So other than unemployment problems - I mean, we will recognize that - are there other lingering issues that hang on during this recession that we're still into before the recovery really kicks in?

YORK: First of all, the foreclosure issue is going to have to resolve itself. There are still a lot of houses that are going into foreclosure, they're being held onto by the banks for various reasons, they're not being put on the market. Even buyers that went out and did traditional mortgages with large down payments, they're finding themselves in stress now. Those houses are going on the market, so we're going to have to work our way through that. But I think a positive sign is the stock market. The Dow Jones touched 10,000 this week. And you know, the procrastinators  - or not procrastinators, but the people who pretend the future say that Dow is saying that the economy is going to be better six months to a year from now, and I think that says the jobless rate is going to level off and we're going to start to see rehiring, and at that point we're going to see the housing market recovery including locally.

PENNER: So that's a bit of shining light that you're now casting on the whole thing. Is this the time to buy? Before the housing does recover?

YORK: Well I think you always want to buy low and sell high. And since we're in a historic low, I think if you're a betting person now is a good time to buy. But the caveat here is that you really want to buy for shelter. You don't want to buy for an investment purpose because the days of your house being a piggy bank are over. That's not going to happen again for another generation.

PENNER: And so you just don't speculate and hope that you're going to get some money out of the house. One last thing.

YORK: Yes?

PENNER: There is an $8,000 federal tax credit for first time home buyers - people earning under a certain amount, $150,000 for joint filers - is that helpful? Do you think people are really taking advantage of that?

YORK: Yeah. I think it draws a certain number of people, it's first time buyers into the housing market. The challenge there is is that the banks have made getting a mortgage about the equivalent of running the decathlon in the olympics. It's a long, arduous effort and we've heard stories of six months, nine months to get a mortgage. So that's really hurting the market as well.

PENNER: Ok. Well stick with us, Tom, we have more to talk about.