property. if you believe that the housing market will drive this economy back, you are right where you need to be this hour. connell: we bring you the business of real estate. ♪ dagen: say it again. you cannot ask for for bigger names when it comes to real estate. connell: i am so excited. dagen: we usually do not have people on for the full hour that we like. [ laughter ] connell: we will get to them and about 30 seconds. let's start with nicole

petallides at the new york stock exchange. nicole: these markets have been at record highs. setting new records that we have not seen ever. you do see the nasdaq and s&p squeezing out some games here. we have had a very strong dollar. gold, for example is pretty extreme. you see two of the three are tech allergy. connell: let's reintroduce them. dagen: in los angeles, cofounder of the agency, in las vegas real estate attorney, miami,

cofounder of the cuban company and barbara cochran is here in studio. you can now see her on "shark tank". the biggest issue is the thing that nobody can stop talking about. the lack of inventory. is it getting any >> it is not getting any better. we have half the number of houses this year as we had only 12 months ago. connell: let's get everyone's perspective. >> i agree with barbara 100%. we are seeing a lack of inventory. we are excited about some of the properties that we are bringing on board.

dagen: stay on not really quickly. are you seeing any construction activity? >> we are starting to see some developers get into the market. there is some construction going on. >> here comes the promotion. >> there it is. we always have to promote. connell: it takes one to know one. [ laughter ] >> there is little construction going on. connell: katrina, what do you see down there in the miami area? >> the sixth month a healthy

market. inventory is very low in this market. dagen: katrina, you are beginning to see new building, a lot of condo activity that was maybe put on hold when the bubble burst. you are starting to see that. i did, are you not? >> so many developers are starting to calm back into the business. connell: we will get into the

mortgages later on and what it takes to qualify. bob in las vegas is up next. what is your perspective? >> first of all, thank you for having me on. i love watching you all the time dagen: and we do love suck ups. [ laughter ] >> we are on tv. here is the deal, what happened was we had a law that was passed that made it more difficult for homes to be foreclosed on. we have supply and demand. we have a very short marketeer. the prices have gone up.

that is the why things are the way they are. this law that was passed, it will soon be changed. it will push the foreclosures back up. the prices will get hit again and they give. connell: bob mentioned. >> eliminate the worry scary word. >> we will still have that much of a problem. it is still fictional. once the foreclosures start up again, you will see there will be more homes and the price will fluctuate a little bit. dagen: we are just setting the

table. we cannot wait. single-family homes versus condos. our experts will talk about which is your best buy. of course, it is a lifestyle decision. this is something that is gaining popularity in los angeles, of all places. connell: we will be talking about homeowners insurance. it is all coming up. the business of real estate on fox business. ♪

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♪ connell: we are going to do this. dagen: you have to explain this. that is the home i want. connell: a $35 million place, apparently. dagen: fictional values on fictional properties. connell: why not. dagen: adam shapiro is across the hudson river in weehawken, new jersey. >> good afternoon.

there is a building boom going on with condominiums. several condominium developments now up and running. people are buying these. five years from now, they will have another 800. to give you an idea of what is happening with the prices, not just in new jersey, but around the country, some of the best markets are reno, nevada, santa barbara, california, south carolina, condo prices up 39%, rhode island, 28%, of course, nevada, condo prices up 24%. prices are really skyrocketing in jacksonville.

if it is a condo you want and you want to be near manhattan, weehawken. i am in the center of it all. back to you. dagen: anybody from new jersey will tell you that new jersey is the center of the universe. it is a big choice. would you want to live in a condominium? that increasingly is no way that some luxury buyers are going. why? >> los angeles has always been a home market.

we are just starting to see a surge and condo sales. it is one of these things where you calm and buy second homes, third homes. really looking more for an urban type of living. >> who is actually buying those homes besides the typical homeowner? >> it used to be the empty-nesters. it is pretty exciting. >> in most markets it is a financial choice.

condos are cheaper. when they are saying prices are up 34% in the market, it is comparing the old condo to today's condo. the availability have changed. dagen: katrina, during the downturn, did you see people trying to take advantage of that ? >> you have to include the maintenance fees and the taxes. a lot of people were not paying their mortgages. that is when the assessment comment.

we are seeing a lot of condominiums coming into the area. >> first of all, a lot of people had to liquidate everything they had. there is this ambivalence should i go back into a home or should i just start small?

they still, there is this anxiety. it is a little easier for them to get into. it is a learning curve. that is a part of this thing that we are seeing. >> the good news, they do not stay there for long. the turnovers are a enormously thick. at least it is over soon. dagen: i will concur with that. >> be nice. connell: it is hard.

>> i think the developers are adding a lot of amenities. it is making it easier for people to want to be there. connell: we will talk to our all-star panel coming up. dagen: taxes. a huge expense. property taxes. we will talk about income taxes in particular areas. we have all of that coming up. ♪ everyone's retirement dream is different;

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♪ connell: business of real estate on the fox business network. having fun with these fictional properties. gatsby mansion, 42.5 million.

dagen: does leonardo the caprio come with it? we are putting these numbers up. the funny thing is mauricio cells properties that run into this amount of money. barbara has and katrina probably has two. connell: let's go to homeowners insurance which is our next topic. these numbers, nationwide, average cost is $909. this is coming from the insurance information institute. let's talk about prices. barbara, what about insurance? >> i think the best person to answer this is katrina. she has the right name. [ laughter ] >> hurricane katrina.

as long as the policies are getting that much more expensive, the insurers are nickel and diving. connell: you wonder if that is an incentive to not buy. >> it is becoming so much more expensive. there are so many different costs that it takes to maintain a home now a days. >> and someone actually get the insurance? >> you can. you will just have to pay a premium in order to do so.

>> i have to sort of laughed. the insurance companies were ripping off the lenders which is somewhat of a paradox. they ripped the lenders off which i personally love. now, what they are doing is they have to pay all of this hazardous insurance. bottom line, all of us will pay for that price, even though they have billions of dollars. dagen: murray co, final word to you. >> we have earthquakes and fires over here. insurance is pretty expensive as well. it is part of the protection plan. >> i am absolutely sure that bob

will not get any insurance applies for the rest of his life. those are fighting words. what are you thinking. >> i have had a pleasure suing their butts for many years. [ laughter ] connell: great panel. dagen: next topic coming up, taxes and your homes. property taxes could get worse. we talk about mortgage interest deduction maybe going away. connell: rent versus buy. for a long time it was an easy answer. money is up a little bit in the economy. a different perspective from different parts of the country. straight ahead. ♪

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♪ connell: business of real estate. it has been throughout the hour. a little on man action now. $50.8 million. dagen: from the godfather.

the one in lake tahoe. $66.6 million. there is one in staten island, as barbara pointed out. connell: let's get a check on markets. nicole petallides. nicole: sitting at 15,088. you do have a lot of up arrows. hewlett-packard, cisco systems have been some of the best performers on the dow jones industrials. energy names, such as exxon and chevron. we are seeing gold selling off. down $45. back to you. dagen: homeowners, particularly

those in jersey and illinois are forking over the big bucks. connell: jeff flock has more on that story. we have a big story on this later in the day. one company buying homes in the town to try to save it. take a look at the numbers. highest property taxes as a percentage of the value of your home. new hampshire, then taxes and then wisconsin. those are the worst property tax burdens. they reduced the tax burden on this particular community. this is a home that we will show you later in the day.

one company has bought over 250 homes in this town. fixing them up trying to get them back on the market. dagen: certainly a major headache to homeowners. i guess, barbara, we should let you go first. we are here in this area. your thoughts on taxes. >> what is a bright note on the scene of real estate is property taxes will not be going up in the next two years.

you can count on your property taxes staying the same. dagen: out in los angeles, and eerie, even if that assessments are lower, your property tax shortfall. have you seen that happen in the last few years? >> our taxes are based on the actual purchase price of the house and then they just stay there. they do not move. that is a very interesting subject going on here. connell: are you on such high ends of the markets that it does not even matter? >> rich people hate paying taxes

even more than poor people. [ laughter ] dagen: katrina, how about down in florida? >> obviously a lot of people come down to florida because it is a tax haven. it is interesting because yesterday i was showing $10 million homes and taxes were one of the big topics. it is still a consideration, especially when it is a burden that you have every single year. taxes will always be an issue. connell: any opportunities in this discussion that you have heard for somebody to sue or a lawsuit that you can file? i am just kidding.

>> we have always been very blessed in vegas. we always called vegas east l.a. because so many people from east l.a. moved over here because of property taxes. sony people lost their jobs because nobody was paying property taxes. we are still sort of in that flux of how that property tax affected it. we are very fortunate. we have no state income tax. >> absolutely. >> the state income taxes have actually increased. from california into the florida

market. >> the other thing is they passed that business tax in california and we have an enormous amount of businesses now coming to las vegas or nevada in general. connell: kind of and interesting topics. rent versus buy. we will have that coming up. dagen: we will get back to that terrible word from earlier in that hour. it rhymes with horrible. the panel weighs in coming up. ♪ everybody has different investment objectives,

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, ♪ connell: kind of had a feeling that we may hear this at some

point. dagen: burn down the house. connell: how much? dagen: $105 million. connell: we are having fun with these fictional prices for fictional homes. the million-dollar question we have been waiting to get into and now we have some time to do just that, rent or buy. 66% owning one. these numbers coming from the national multi housing council. there is a trend in los angeles. you have talked about it before. >> there is definitely a lot of luxury homes being rented right now.

there are a lot of buildings going up for rent. renting sometimes gives you more cash to be able to invest and do certain things and the more mobile. we are in a transient environment. buying certainly gives you opportunity to make an investment. >> you are selling again. i hear the music. [ laughter ] dagen: i will defend you to barbara. with interest rates as low as they are, adjusting for inflation, the banks are giving you free money. >> no, no, no. people are still going into the rental market.

it is cheaper to rent. >> wait a second. we also have to talk about the credit issue, guys. what can i tell you, i am here to tell the truth. there is a lot of people that would like to buy, but the credit is not there. even if fha will insure it, the lenders will not allow it. in vegas, the hedge funds are buying everything. they are saying we will give you two options. an option to buy, nonrefundable down payment, they love that. the other thing they are doing is they are carrying paper. people have money because they have not paid house payments and three years.

that is what is happening. connell: as they go to the original point, buy versus rent, which is it down from where you sit? >> last time i was on the show was talking about obama trying to pass legislation i am very much for the free market. i think part of the american dream as owning a home, but when the time is right. there is nothing wrong with renting until you are able to do so. as far as the qualifications to be able to buy a home, obviously, you still have to put dirty% down.

the credit score is very important. i do not take that that should be changed. >> i think, though, there should be some kind of amnesty program. this is a time in history where we will look back and say based on the kinds of loans we are giving, there should be some kind of forgive mass of an amnesty program for some people. >> baba, you are so worried. people lost their homes and got labeled somewhere along the line as a loser.

it is not going to change. >> there has to be some kind of government intervention to get people moving on. >> are brought, i love you. >> stay out of it. >> that would involve some cerebral act committee i do not want to get personal. dagen: i love the fact that there is not the stigma that there once was to buy a home.

>> there are buildings that have a lot more amenities to them. going back to the point of buying in the mortgage rates, if you believe in inflation and the believe that the prices will be going up. i am bullish on line. connell: let's wrap that up for just a second. dagen: mortgage rates are so low right now. the bank is giving you free money. we will dig into that. how long can rates stay this low? twenty dollars in a curse jar. connell: next hour, cheryl

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♪ connell: richie rich wanted to sell. that is pretty good. dagen: wanted we all want to live there. this is really just a hassle.

connell: kind of silly this whole thing, but fun at the same time. dagen: we have heard all our how it is a sellers market fueled by low interest rates. bernanke was talking about that this morning. >> what created the crisis was not the mortgage market, but that implications for the stability of major financial institutions and major financial markets. connell: as we bring them back for another go round, bob got barbara all worked up because he mentioned the word bubble. >> it is a dirty word.

it puts the fear of god in everyone's heart. we will have a run here for another four or five years. connell: bob is going to respond. murray seo is also a hater of the word bubble. >> yes. i do not like bubble. we already have the bubble. we are not doing it again. dagen: but is it a good word if it keeps people from making stupid decisions? >> let's get this attorney thing off the board here. it is a reality word. all i am saying is this. right now there is still some fictional increase in price. >> they seem real to me.

>> i am picking up what you are putting down. at some point, when some of these foreclosures increase again, you will see a little leveling out. it will never go back to what it was. >> no, you are wrong. i am putting money on this. >> now you are starting to talk cash and you have my interest. >> we are seeing that all around the nation. it is one of our biggest frustrations. connell: you guys are all used to these reality shows.

>> i know one thing, i am not starting my car for a few days. that is for sure. connell: we have to wrap it up because of time. thank you all. dagen: we have to do this again. connell: cheryl casone is coming up. don't go away. ♪

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welwhere new york state is... investing one billion dollars to attract and grow business. where companies like geico are investing in technology & finance. welcome to the state where tting taxes for business... is our business. welcome to the new buffalo. welcome to the new buffalo. welcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get in new york state.

to grow our start your business, visit thenewny.com , fox business has you covered, we're continuing our focus on the big business of real estate. i am cheryl casone. i have assembled the best and

brightest minds to guude us and advise us. i have brian lewis, property executive vice president, kenyon and walsh, cio, united realty partners ceo and cheri crist, ceo of federal homes and gardens real-estate welcome to all of you. let's take a check of the markets with nicole petallides on the floor of the new york stock exchange. nicole: some back-and-forth action, dow jones industrial average down 36 points, positive for the week and some new all-time record highs on the dow and the s&p. highest levels ever in history. and the nasdaq, the take heavy nasdaq, doing well on the dow jones industrial, and the best performers on the dow, and the nasdaq, and back to you.

cheryl: thanks to mortgage interest rates, double digits, ben bernanke could ruin that party, the federal reserve bank of chicago, the fed chief just spoke. >> he brought up the issue of asset bubbles in the past including housing bubbles, and because of the financial crisis it is a lot more vigilant about watching out for future bubbles, watching a lot more key indicators, and with more oversight there will be times weekend identified bubbles, the sub prime crisis. >> the impact of the sub prime mortgage market was the sub prime mortgage market was quite small and every step in the world went bad, the flosses, not

that large. >> he said in a sub prime crisis there were a lot more undetected vulnerabilities in the financial system, the sub prime crisis happened, it triggered the broader financial crisis. he hopes that not opposed dodd-frank and with more regulation and bank capital that if there are other bubbles the system will be a lot stronger and be able to handle them a lot better. cheryl: the timing is the question for all of us. thank you very much. will ben bernanke and the fed ruin the housing recovery? interest rates start to pick up sooner rather than later, buyers will fall away. >> interest rates are low.

ben bernanke said if unemployment gets the 6% we will see some raises but until then we are there and unemployment is 7.5%. we are cocaine with our rates and our parents and some of my panel members might have the same situation paying 18% in the 80s, we are talking 3.5% and that is amazing. if and when they go up it will be slight increases, plenty of time to take advantage of these amazing rates. melissa: cheryl: we have interest rates that are low, in 1990 we were in the 9% range, in 2002 was lower, 6%. now we are seeing at 3-1/4%. this is crazy. >> these are historically low rates which means this is a great time to be buying any real estate because the lower the rate we get positive impact of leverage. the party is not over. ben bernanke not only is worried about unemployment, when we

think about unemployment going below or to 6.5% as unemployment continues to fall we have people who are out of the unemployment numbers because they're out of the job market, some of those people continue to come into the job market so even as we are doing better on the unemployment numbers it will continue to stay relatively high because more people will be coming in. now is the time to buy real estate and buying it at historically low prices typically below replacement costs still below the peaks of 2006-7 and with historically low interest rates. cheryl: if we see interest rates go up even a little bit it could price some people out of the market. the younger generation which you are a big proponent of trying to get the young to buy homes right now. >> and it will. historically when we look back over other recessions when interest rates start to build up a little bit that often spurs

the market because people think what better jump in now before the rates continue to rise. cheryl: do you agree with that? >> back to ben bernanke, he did tell us he will keep interest rates where they are at historic lows in 2015 at least. or until unemployment gets to 6.5%. let's do the math. for every 5% of gdp growth traditionally we have seen 1/2% reduction in the unemployment rate so we're entering 2% gdp growth, we need another 1% off of that, four years at the current rate until we see 6 points and unemployment. cheryl: that goes where we started this, the job sittation. >> i have said it on your show and on fox business call about jobs. we have an improving -- unemployment is going down. when it goes down to 6% those rates are going to climb. more people have access to the

good rates but even if they creep up it is a prime time to buy. if we get fannie and freddie, telling people who can come and who cannot, very vigilant, it is tough right now for certain people, getting them into the club and getting them in, if you have a job and you have good liquidity and all the things, the conforming loans offer or they want you are doing okay. >> i agree with that. recent survey we conducted and we did across the country with millennial, 1 hundred million of them, one in three said they but like to buy in the next three years. if you look at what we are all seeing that is positive for the industry. cheryl: i will bring that up, the buying versus the renting conundrum many americans find themselves in depending on where you live at this point sometimes

it is better to buy than to rent right now but how long does that last? >> todd to argue or foresee a scenario with interest rates lower than where they are right now. let's hope not. you have 30 years right now at 34, 13 years at 2.6, eighteen% of parents were planning on. >> you look good. >> a position where they need to lend. we are starting to see the inventory of unsold homes decrease 37% in the last year, the backlog of unspent homes is going down and inventory going back and mortgage rates at historic lows, it is a buying season, time to consider buying. cheryl: if you're going to buy you need to buy now. that is one of the messages i am hearing. >> we do have a third chairman who said fed funds rate will stay zero through first or second quarter of 2015 so i think that is the time we can

all count on but when you talk about fannie and freddie likely lead trying to become less and less the lender of last choice in america when you look at the multi family area they have effectively started cutting back, they reduce the multifamily lending by 10%. when you think about that they will try to do that as well in the homeowners on the residential side but that just means other players will step into the market so we will have increasing players in the market to provide that lending, spur a new set of residential mortgage-backed securities, hopefully not like we did with the sub prime mess and that will provide a different set of rules as lenders compete. cheryl: i want to thank you before you go, looking at the difference in buying and renting in new york city which is your market to buy the average price, half a million dollars and the rent is over $1,100 so it makes

more sense. >> if you can get through these boards and all these things in new york the rental market and the sale market have always worked leica teeter totters. in the rental market we're in a hot sales market. if you have something to buyike. in the rental market we're in a hot sales market. if you have something to buy there's no inventory out there. i don't feel bubble, i see demand. listen, it is so inexpensive to buy if you can get that money. i am a big proponent. cheryl: we will move on to a different issue which is washington. it is probably your favorite income tax deduction but is congress going to kill the mortgage interest credit? two weeks ago the experts coming up next along without affect their businesses or the business of real-estate continues on fox business.

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cheryl: on april 24th several economists told a congressional panel the mortgage interest deduction is wasteful and does little to spur home ownership, the most expensive tax rate on the books right now. and on the front lines do you agree with them? >> is it wasteful? is a valuable tool. i like it. i like to deduct mine. with the lawmakers are looking at is if they take that away they will give you something else. i think they will have a balanced basket of of the taxpayers and will placate the 99%. they will placate the middle class. it will take some explaining because of they take one thing a way they will give them something else the wood is the

same basket of savings, but it is going to be proportional differently. cheryl: it is $100 billion but homeowners love it, young cold, they love it. >> i agree with brian. is going to be part of overall tax reform and so it will take some getting used to. in canada where i am from it is not there. so what people do is pay their mortgages off as quickly as possible and it is a totally different economic scenario. >> very high taxes. what is that today in canada when you start making a profit? >> july 15th, a long way into the year but people still have to buy and sell and whether the tax deduction is there or not, people need to move, people want to move so it is not going to stop the real-estate market. cheryl: these economists were telling congress, lawmakers,

prices were going to go down. prices, one of the things we have seen put up not just on the home-building stock but investment across the board, things we depend on. >> fortunately for americans, communists don't pass legislative laws, politicians do and i can't imagine, and less tax reform takes the shape of a flat tax and while i support that i can't imagine is going to happen. so what greater sacred cow to the politicians have than the deduction on home mortgages. we are talking not canada but social security--social security goes broke in 2016 and there is no doubt that people of my age and younger are not going to have the benefits of people older than us so two things we can pretty much rest assured on, our elected officials won't get rid of the interest deduction on home mortgages if they do not do

a flat tax. cheryl: they said during the hearings and this is public record that they would consider broader tax reform. >> if we are looking for areas of wasteful spending or waste, i could list 500 of them taking place in the federal government but if they were to remove the mortgage deduction not only would that hinder the housing recovery but hinder the overall economic recovery. i know how less disposable income and middle income tax payers have less disposable income they know how to spend that, 70% of the economic growth is from consumer spending. if we have less to spend that can propel the economy forward. cheryl: i see examples where politicians and republicans have said this will bring down the overall death of the nation they will be in support, politically that is risky but they're willing to take a chance. >> with the mother areas they could start with. >> when you look at that, even

if it is $100 billion, we have $16 trillion of national debt that cost as $1.4 trillion a year. we have $60 trillion of unfunded government pensions, and funded medicare, medicaid, social security, we have $76 trillion to deal with and this is a very big problem for the united states. it is not going to get resolved by changing the interest rate on deductions of home mortgage. >> it is part of a broader basket. they will attack several fronts but it will take some great pr for politicians. >> exactly. i like the fact that you are all agreeing that home building stocks are one of the big things that propel the markets, they doing amazing in 2013. markets today not so much. a quick check on the markets. nicole petallides standing by on

the floor of the stock exchange. nicole: back-and-forth action, mixed markets, nasdaq composite has the apparel and the s&p pulling back, movers worth taking a look at, taking a trip anytime soon? price like moving to new highs on quarterly numbers of 3%, trip adviser of 3%, true religion is one we're watching being acquired by colorful capital partners, 7%, google all-time high, $880 today, that is a big deal and also apple, down 1%, apple balanced at 15% this year and the dow is up 15%. back to you. cheryl: home prices in the bay area of 15 minutes. where can you get the biggest bang for your housing buck, the business of real-estate continues on fox business we look at the latest and most expensive housing market across the country. we will be right back.

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>> your fox news minute. fox news is reporting the u.s. military has two each units in libya on standby due to deteriorating security system in tripoli, this after a state department morning advising americans not to travel to libya eight months after the u.s. embassy attack where four americans were killed. state department warnings this glove back the security situation in libya remains unpredictable. the ohio attorney general says dna tests confirm accused kidnapper aerial castro, the father of the 6-year-old girl born in captivity and founding his cleveland house tuesday. castro was arraigned on kidnapping and rape charges for allegedly keeping the mother of the child in two other women captive. for as long as the decade. in bangladesh a woman was rescued alive from the rubble of the collapsed garbage factory 17 days after the disaster. crews heard a faint cries of save me, she survived on water

and fire fighters used, the death toll has reached more than 1,000 people. those are your headlines. point cheryl casone with a little good news. cheryl: that video is amazing the way they found her. thank you very much. you heard the phrase all real estate is local land certainly some parts of the country make better real-estate investments than others. you have got your calls on the nation and you do a lot of research in this area. best part of the country. >> highest prices are best value? >> if we look at the areas that were hit the hardest during the downturn, they provide the best value. arizona, florida, the rebound is taking place, a lot of value in those two states. having said that a lot of investors have gone in and bought up properties in states like that not, nevada as well.

prices are starting to increase an inventory is lower. in the state of arizona for example was reported less than a month's inventory recently so there's nothing to buy any more. cheryl: amazing the national average where inventories four to five months. >> it is tight and getting tighter. i talked to my friend in california and north carolina, there are pockets and talk about that earlier, pockets are so tight and that is driving it. not a lot to buy, buyers with cheap money competing for the same homes, great time to be a seller. cheryl: you are picking urban stops. >> take care of number one first. of boston, they have, they outperformed the country with a lower unemployment and job growth is great, i love madison, wisconsin, same reasons which i love olympia, washington.

ironically they are college towns and in some instances they are capitals like charlottesville, va.. a great place. >> you got the university, it is an awesome place, it is borgias, you are active, the neck of the east coast's. so although in the last quarter in scottsdale, phoenix, las vegas, tampa, those markets have the most room left to grow in order to get back where they were in vogue free crash, and has not suffered as much through the country, the single market in america today that is closest to its 2007 highs so the southeast, the west, not

california, close to its 2007 highs, if you're seeking investment opportunities looking for growth in the value of your real-estate, las vegas, tampa. cheryl: i was having dinner with a real-estate investor who went to floor and he is losing a ton of money, and florida not giving him a return. >> residential housing and condos, commercial real-estate by contrast from the investment perspective is delayed by across the country. commercial real-estate market typically lags the home and real-estate market, and we're seeing a tremendous amount -- and two hundred billion,

refinance between now and 2017. and talking about investments in commercial real-estate, great buys throughout the country, and start we low-interest rate. >> looking at the realtor confidence surveys in 2012. and bias increase in california, texas and florida and with the weakest increase taking place in new york. >> if i look tired the market is on fire. >> in new york city, not greater new york. >> the extremities' are all around and i don't see a lot of them even way out east. seeing a tightening of inventory, i am seeing it in connecticut and jersey. i am very region centric.

but i really see -- >> when you think about specific cities, i think of the five cinderella cities, new york city, boston, washington, san francisco and los angeles. when you move away from the cinderella cities even with the most states we haven't seen the kind of recovery we have seen in the cinderella cities. the cinderella cities always a great place to invest with you are doing it commercially or for residential lending will retain value and today what is going on in europe and certainly the fear is as to the euro there's a tremendous amount of saving capital coming in to places like manhattan because you can put your money very and you know it will be safe for the reserve currency of the world matter what happens. cheryl: i can see kevin. i know what you want to talk about. we will take a quick commercial break and talk about global investing. kevin is dying. if you don't want to purchase a

home there are other ways to play the housing recovery. kevin is ready to go. real-estate investment traps among the best performing equity sectors since the recession, returns 10% or 45% in 2009. the business of investing in real estate continues. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it.

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♪ cheryl: just passed the bottom of the hour. lee's get check on the markets. from the floor of the new york stock exchange. >> reporter: all right. it is friday. look at what is going on. back-and-forth action. the dads and industrials. what is interesting, take a look at a name like hewlett-packard. that is a great indication of

technology, up 1%. target is virtually flat the moment. that is a real looking over here. and right on top of that system also pretty flat. the homebuilder, right now, here is toll brothers down one-tenth of 1%. and on the left you can see a shipping company, those both have up arrows. up nearly 2%. you have some names that are up, some are down. a name like tbalae thmlb e fi, th is abo hal a peent cherylthanyou fhowing us i have toell y7 rct ofhe ltea thanyou ry much well, realstatnvtm ustmo the besterforming uitiesectosincthe receionit rur of 246 rct siehe year 2009. ou all-stapane i ac o t wie. i pmid iou g t y le tk autto whin reh th you reallyike ght no. >> herfornateo wk wi a

terrific mer i cifnia. capil managemt wos wh us wh theare ein wt they haveold u i ahr-yr day he sn t stors su as ealthar the suan oic site, m cently inpril fus o shopng los a the-yeartory pai of store isertalytron a ll. lotiesto don apecia whatheyan offer hey ave oay o 9peent of tir iome d th all u to pre cse track this hoin recovery depending on where you see that take pce. whether it is on the commercial side, the retail side. we are bullish on health care right now. let's get our aging population, like the limited supply, assisted care, long-term care facilities, plus factor in obamacare. that is a pretty convincing buy signal for health care reit. you just have to determine how to take that on. cheryl: you know, the buy in and manage, i mean for lack of a better term here, you have the

aging population. a lot of them wanted stay home, but a lot of them cannot. and you have a long-term managed care facilities. those are all in this and plays. >> as you know, we have one of our public, a current sec race. so i am coostrained on talking about any particular. i think it is important to raise that there are two types of investments out there. investors can look to the public listed once and the public non listed. and when you are investing and start talking about where to go, you know, if you have real estate in new york, you listed on the exchange, if there is a tsunami in japan and it impacts their power plant, you know, it does not impact new york real estate or california real estate. those impacts the entire market. that is known as correlation. so publicly listed once the are

correlated to the markets on which the trade. when investors might want to look for an investment that is to a real-estate exposure, they can better than non traded. they are not traded on exchange. they also don't have the kind of liquidity or they share price transparency that you get on the publicly listed bonds among what is a place that then i want to consider putting money in. cheryl: but the dividend is the biggest. you were shorter dividend. it is a sure thing, i guess you could say. the performance is not a sure thing, but if you look at the performance of the last three years it has been one of the best performing sectors. remember saying that the home market will blow up an implode, and the opposite happened. >> again, there are not just homes. it's not just housing. touch is commercials from office building, so stories. attach a shopping malls. it is a very broad universe. i think my concern with the nongraded space is just what he touched upon, which is liquidity . for a portfolio manager my ability to buy and sell quickly

and get out of the market when i need to is paramount. so all that may be appropriate for certain investors might think on the retail side there is plenty of other opportunities in the publicly traded reits. cheryl: you're the one out there talking to a gardener is running york city. research and real estate, but you also see a lot of commercial and office property years. >> i do. i think that it is regional. we all talked about resisted being local. and reits are stocks. so it is part of a very diverse investment portfolio. you have to know what you're buying, no where it that reits is, what they're invested in in that way you protect yourself. i just think you have to -- is like any other stock. right now it's easy to run to because of the results and the returns that they're getting, but you have to be diversified. >> it is all about the management team. not everyone is the same. not every technology companies the same, not every home builders the same. what are the assets that the

investment. where did the investor? do they have legacy assets that they bought at the top of the market that are not keeping the value that they have today? are they buying assets today into a down market? cheryl: all of which is a search away and that is the thing. it is also easy to find if you're willing to do the research. well, you decided to take the plunge, decided to buy something. should it be a condo where should you buy a single-family home? the business of real estate continues after a quick break. ♪

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hurry in, sale ends may 12th. powerful devices. powerful network. verizon. ♪ >> reporter: hi, everyone. i'm here with your fox business brief. oil is under pressure on the heels of a stronger u.s. dollar. a cautious outlook from opec is also taking a toll. the organization lost its oil demand forecast unchanged and did one of challenges ahead that could change that. right now oil is trending down about 2%. today's drop in oil is not helping gas prices. according to aaa daily fuel gauge the average price for a gallon of regular is up $0.2 overnight to $3.56. and marriott is boosting its quarterly dividend 30%. the dividend of $0.17 per share will be payable june 28. the shareholders on record as of may 204th. meanwhile, a children's apparel maker carter's initiative is first quarterly dividend average of $0.16 per share. the company is also announcing a

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♪ ♪ cheryl: taking a look at the dow, down 26 points, 15,057. we are still above the 15,000 level. united health, bank of america, all leading the dow. but not enough. hire again. down by 24 points. well, forget about manhattan, the place to buy kind of these days is across the hudson river. adam shapiro is in new jersey to explain why. >> reporter: well, a lot of it has to do with being priced out of the manhattan market, but i want to show you the port imperial ferry because when you come you have to get back to manhattan. take the ferry, $9 per day and

one of the things that is helping turn is part of the hudson river, the coast and new jersey coming into the new gold coast, the fact that you can get back to the city so easily. yet nothing is the fact that condominiums are, for the most part, cheaper than the condos and co-ops that you might see comparable in manhattan. so there is a building boom is underway. we are actually at a properly in a building a 74 unit building which will have very expensive prices because it is prime real estate with a magnificent view of manhattan. but in this part of hudson county, prices have gone up. so we are going to be talking about how you get into a condo dividend of 40 minutes we will speak to a real-estate expert a mortgage broker who will tell you getting a mortgage on a condo as a loaded more difficult than getting a mortgage on a single-family home. back to you. cheryl: all right. a nice, sunny day out in new jersey. thank you very much. the difference here, do you want to buy a condo? you want to buy a home? jacob, is there a difference

between the purchase of the two? would you ever tell, i don't know, your daughter which way to go? >> there is a real difference, and if you want to look at it as an investment -- and go back and say, maybe i think that things that eat and live in my not be an investment, but if you're thinking about it as an investment, condos fall less as a percentage and houses from the top of the market to the trough in 2009 and have recovered faster from the trough of the market in 2009 to today by between six and 10% and major cities. and so i think that you my surprise most americans, but buying a condo actually is a better investment played in buying a house. cheryl: i use the prize? >> a little bit surprised. and i don't disagree with you. one reason is the aging population. one-third of the population are what we call baby boomers, i should say. and that 78 million group is

going to be moving into condos. so if you think about five years to much in years out, condo, yes, it could be a very good investment. i'm going to take a step back and say it is really a lifestyle decision. and so when you look at consumers making such an important decision for the next five, ten, 15 years of their life, they need to look at it in a different way, not necessarily an investment. where you want to live? in a single-family home? walk to starbucks, have a concierge service spirit is really a personal decision. cheryl: the condo, you are paying a little bit more. the association. they can be in your business. you have to kind of way that expense as well verses the expenses that come with just. >> are you really going to love communal living? and if your neighbor's economic fortunes change, that can affect were left on a single-family home? absolutely. there is not much of that to go

around. going to cost me ten to $15 million to do like. i live in a co-op or condo. and i do it because of, that is with the inventory is. but, yes. it's lifestyle. it really is lifestyle because the new condos, it's like the new ipad, they have the bells and whistles and they're getting the next generation, and they can target their audience. if they want to retirees, they want whenever the next generation is going to be called , the plight to that. cheryl: we were talking about reits. another thing to you brought up was health care in the aging population. they want condos, full-service spirited don't really want -- they wanted to the old folks home, but assessed have a community. have a neighbor close by or managing agent in case you need something. >> i think that's right, but you also have to remember, they are on fixed expenses, fixed income. what they can control is rising

association fees competence assess the you're not aware of. you have to know what you're getting into when you're buying into a condo. you have risks of new plan of attack of course. you also everest's summit on the side. personal preference, but i think, does not only appeal to the aging population that the younger population. >> it comes at a cost. >> i was looking at the top markets across the nation. better homes and gardens. reno, jacksonville, santa barbara. condo markets. >> it is not condo market in santa barbara, and it is also a very strong retirement market as well. you know, many people dream of retiring in a place like santa barbara. yes, it is. cheryl: i wonder what is higher, the third best. single-family. >> i'm with you. i think we talked about it. cheryl: the little lady is serving the wind, that will be

mean about four years. are you surprised by the differences between the condos in the single-family homes? there is a big difference. >> well, when you talk about cost, there is a fixed cost that you have to pay every single month in a condo, but you have the same costs and homes. what does the condo association phaedo for? clean always comestible this note, fix the roof, create reserves for the boilers in the central chillers the have in these 30, for restored buildings. if you're a homeowner you don't get away from those expenses. you might control the timing of them better, but when the furnace lows, when that condenser goes. cheryl: i can't fix it. al ready a minute that. final thoughts from our panel coming a does the business of real estate continues. we will be right back. ♪ ♪

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cheryl: as we wrap up this hour of fox business focus and a big business, i'll want to give blastoff from our panel of experts. what do you will need to know what, but housing? >> i want to see cheryl casone serving the wind. money is cheap if you have access to it. go for it. refinance. i am so bullish on wrists there , there is an opportunity. rabbit. cheryl: i like it. >> i agree, and i am going to say to my real estate is a left out -- lifestyle decision, a long-term decision. don't look at it as a short-term investment. try and figure out what you want to be doing five years and now continues to now. there is no better time to jump into the real-estate market.

cheryl: timing is everything. >> as much as we focused on the u.s. markets, great opportunities exist internationally. as of the end of march, their up about 12%. national double. opportunities exist overseas, primarily the united kingdom. cheryl: investing in overseas properties that exclude the united states. they have done really well. very, very well. right. >> a lot about international reits and housing. this is a great time for commercial real estate. commercial real estate is that historically low prices. historically low debt. we're talking about businesses and investment. this is the time to be buying real estate. cheryl: if ever i had an all-star panel, today was the day that i had one with all of you guys. thank you so much. appreciated. special thanks. all some of my favorite guest spirit of great to have them for an entire hour here on the

markets. add on want to leave, but i have to. the business of real estate all day long right here on f be in command week the really big business. how about this for a listing? ten bedrooms, 11 bathrooms, 23,000 square feet. a mansion in miami. it could be yours for $100 million. this ceo of coldwell banker on how the luxury market is fairing during this housing recovery. ♪

♪ >> as we focus on the business of real estate, it is important enough that there are different ways that you comply realistic. buy, sell, or invest in home building stocks. we see those on a tear over the last year to two years. a big piece of the house a recovery is the housing market, but there plenty of ways to make

money. fox business making your money in bank -- bringing some of the best and brightest minds from all of our favorite guests. we take you through another hour two of my favorites. and now you have a lot going on. ashley: we will be looking at phoenix. you know about phoenix. obviously decimated in the housing collapse, but it is making a huge comeback. the question is, who is buying these homes? still getting big discounts. prices on the rise, but the problem is that they fell so far that they have to come along way back to where we were right back when this whole thing started. interesting stuff. all right. good afternoon. tracy: the dow losing ground after a week of record gains, but keep in mind, still holding above the 16,000 mark for the third straight day. ashley: pummeled. the strong dollar and the crop report weighing on oil, gold, and green.

tracy: our special day long series on the business and real estate from high-end to low inventory. we have you covered. coldwell banker ceo on the booming luxury real-estate market. it is nice to see that those guys are back in action. and prices are up. the age of buyers is going down. ashley: what happens. just not enough funds to buy. ceo on my low inventories are having a serious impact on the housing recovery. that is a story we hear time and again. tracy: it sure is an inventory issue. well, top of the hour, time for stocks as we do have a 15 minutes. we had done to the floor of the new york stock exchange. you have some stocks losing ground. >> reporter: we do. a choppy session t