. . . . tonight on "nightline," market meltdown. july's existing housing sales are the worst in a generation, so, is this the bottom? with the real estate market in free fall, what can you do with that home you can't sell? how to build a teen idol. from cute youtube hit to international music sensation, we are all access with 16-year-old justin bieber. find out what your kinlds are screaming about. and, working vacation. with two wars and nearly 10% unemployment, can a president really get away from it all? the politics of the presidential vacation is tonight's "sign of vacation is tonight's "sign of the times." >> announcer: from the global resources of abc news, with terry moran, cynthia mcfadden and bill weir in new york city,

this is "nightline," august 24th, 2010. >> good evening to you all. if you are watching us from the last home you'll ever own tonight, consider yourself lucky. same goes for anyone ready to buy a slice of the american dream. but if you're among the millimeters trying to sell, this was a very bad day. the national association of realtors reported the worst month to month drop in existing home sales since they started keeping track in the late '90s. compared to last year, closings keeping track in the late '90s. compared to last year, closings are down more than 25%. is there anything you can do beyond hoping and waiting? "nightline's" john donvan went looking for ideas in tonight's "realty check." >> reporter: these two words in the american front lawn. do they now have the ring of a prayer? a plea to the market gods? get me out of here. now that we're hearing taetd about a 27% drop in the number of homes sold last month compared to june. 27%.

that is terrible news for anyone who has been counting on or driven to selling the family house. because with the exception of a few markets like, say, las vegas or phoenix, where prices fell fastest and hardest, we are not, says economist dean baker, anywhere near done with this yet. >> it's going to take a long, long time in some of these markets, in, say, florida, where you have really big bubbles, those prices are not going to come back. >> reporter: if there's somebody's financial planning based on their house price coming up in value soon, you're saying maybe they should come up with another plan. >> exactly there's no reason to expect that prices are going to go back to the levels they were three, four years ago. >> reporter: baker was ahead of most economists in spotting the great american housing bubble. so, we were curious for his take on some reasways "nightline" ha seen people weathering the down turn. if you must move, but cannot sell, there's a home tending company that will send people to live at very low rents in your

otherwise empty, otherwise non-selling home. like this one near salt lake city. gina blare lived here for $650 a month. the only catch being -- >> i have to keep it clean. every single morning, i get up and go through a routine of making the beds, wiping down mirrors, sinks, watering plants, making sure the yard is immaculate. >> reporter: all in the hope that someone would buy it. after more than two years on the market. the idea behind home tending the simple. once you hear it put this way by the woman that runs the company. >> because of security. you hear in the news, homes are getting broken into, copper ripped out of the walls, alliances stolen. >> reporter: gina got eight months in the house before it did sell. possibly in part because she was there. dean baker's take on it -- >> we have a lot of vacant homes in the country, and certainly we have bank-owned companies. it's their benefit to have someone in there to keep up the

property. >> reporter: or how about renting out part of your home? >> we got plenty of space upstairs. we don't need it. >> reporter: a few years ago, the hottest reality shows on hgtv were all about buying up and sprucing up houses. >> the sink needs to go. >> reporter: now this program is one of its most popular, called "income property." this woman was one of the people featured. she was actually spending money to convert her basement into a rentable apartment. >> benefit a lot from having that income coming in, so, the idea got a lot more appealing as we, the longer we were here. >> reporter: the logic is straightforward, but the rental market sometimes is not. >> nationwide, there's a record vacancy rate for rental units. so, in most areas, it's not going to be easy to find a tenant. >> reporter: you are competing against too many others? >> you have to deal with open eyes. you might have two months, three

months between tenants. it's not a guaranteed income. >> reporter: and what about simply walking away? that starts to look pretty tempting when your mortgage is $390,000 but the value is closer to 300. the facts of peter's financial life right now. >> i've been effectively unemployed for over a year. i had to resort to taking my social security. >> reporter: he's reached the conclusion that being foreclosed upon is his best conclusion. >> rather than living month to month, i have decided that the better course is to walk away from this home. >> reporter: and he is walking with a consulting firm called youwalkaway.com. >> obviously this has a negative repercussion on their credit, but they're willing to take that, because they're not going to buy another home. they would rather save this money, put it to saving, put it to another investment, and recover financially. >> reporter: many americans are looking at this option, often in

combination with what is called a short sale, where the bank buys the house back at market value and the owner gets nothing except away from the night mare. >> i think it's a reasonable option. people are often underwater in a way there's no way they can hope to get equity in their home. the idea they would stay there and pay more than a house is bort. suppose you owe $400,000 on a house that's worth $300,000. that's the same thing as paying $100,000 too much for a home. >> reporter: create a system that lets people that lose their homes to the lending bank stay on in the house as renters. >> they would have the option to stay there as a renter for up to five years paying that rent. so, what it does is, give them security in their home and it also, from the standpoint of the neighborhood keeps the home occupieded. >> reporter: not exactly an inspiring vision of the homeownership that is part of the american dream, but that takes a down payment, one that

25 million unemployed or underemployed americans will not have a long time, if ever. i'm john donvan for "nightline" in washington. >> too many tough choices to make out there tonight. the numbers on new home sales make out there tonight. the numbers on new home sales are due out tomorrow. abc news will have that covered. thanks to john donvan for that report. coming up, all access with the young boy that makes the young girls scream, as justin bieber fever reaches pandemic proportions. proportions. welcome to progressive. nice calculator. i'm just trying to save money on my car insurance. you know, with progressive, you get the option to name your price. is that even possible? uh, absolutely. trade? and i still get great service? more like super great. oh, you have a message. "hello." calculator humor. i'll be here all week. i will -- that was my schedule. the freedom to name your price. now, that's progressive.

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well, for all his fame and massive fortune, it turns out that justin bieber can still be just as mischievous as any other teen. last week, he turned the tables on a fan who obtained his phone number by hacking into a facebook account of one of the pop star's friends. bieber reportedly asked the fan to back off and when he didn't, put the phone number on twitter for a few minutes. about 26,000 calls later, that fan got a rare lesson in the price of bieber-sized fame. and earlier this year, chris price of bieber-sized fame. and earlier this year, chris connelly got his own taste of what it's like to be on top of the world at age 16. >> reporter: his fans have been waiting all day just for a glimpse. now, at 8:00, here in hollywood, 16-year-old pop sensation justin bieber is getting ready to give them what their tween hearts crave. backstage, justin shares a quick prayer with his team. then, he takes the stage. >> i feed off the fans' energy. if they're screaming really loud, i get pumped up and it's really exciting. >> reporter: he has a voice so high and a face so young that some have dubbed him the singing fetus. ♪ you're my precious little lady ♪ >> i sing a lot about girls. but i'm at that age where i really like girls. >> reporter: that will go away when you're 70 or 80. >> i don't think that will ever go away. >> amazing voice. amazing charm. his delivery is unbelievable. he's so charismatic. >> reporter: that's been the classic teen idol package. ever since david cassidy and donny osmond flaunted their unthreateningly dreamy appeal on their television shows. but the road justin bieber has taken, from obscurity in canada to stardom in the usa is pure 21st century. first, he went viral. bieber was first spotted here, not on a tv show, but in clips on youtube. belting out sings like justin timberlake's "cry me a river." this clip got some 7 million hits. this one has gotten an amazing 15 million. >> his mother was the person that discovered him and put him on youtube. >> reporter: that's how bieber got witnessed by scooter braun. >> when i found justin, he was almost 13. and he had it. like, you know, i'm a good marketer, i'm not this good. it's the definition of viral is what's happened. >> my mom was like, i don't know about this, justin. i was like, please, mom? and, scooter was like, you know what, i'll fly you down to at land that, no strings attached. >> every label turned me down saying justin doesn't have a tv show on disney. he will not work. i said, you don't get it. i have a platform that's more connected because all the stats show kids spend all their time on the internet. >> reporter: second, he got mentored. with an in-person audition with r & b star usher. bieber sang one of usher's own songs to him. were you nervous when you were doing this? >> i had nothing to lose. if i did bad, i would haven't got a record deal. i was there just having fun. like, from the start, that was my whole point. if you're not having fun then why do it. >> yo, usher. >> j.b., what's up man? >> reporter: usher was eager to mentor the artist. bieber landed in some exclusive places. atop itunes most downloaded list. leading off the "we are the world remark." ♪ there comes a time >> reporter: performing for the president. >> that was one of the moments where i was like, wow, i can't believe this is happening. >> reporter: third, he stays close to his fan base, who have made bieber one of the most popular topics on twitter, where justin keeps in touch. >> and, i mean, it's so important that i'm able to interact with my fans and twitter really helps. even if i'm saying, right now, i'm going out to eat. they want to know and it's good to keep them in the loop. >> reporter: and then there's the face to face time with fans, like at this saturday night meet and greet following a radio stargs concert in l.a. >> thanks, girls. >> reporter: what are you trying to do when you're meeting a fan? how do you try to make it a good experience for her? >> you know, it's like me meeting beyonce, because i love beyonce. like, i think, what would i want -- i would want beyonce to be like, hey, sweetheart, can i have a hug? i try to give them the best experience, you know, that i would want for someone that i really like. i met beyonce a little while ago and it was -- >> reporter: were you able to say hi? >> you know, i was a little nervous but i was like, you're very good looking. >> i swear this is taye diggs right here. >> reporter: the next day, bieber spots another hero on the road over. actor taye diggs. >> taye diggs! >> reporter: kicking it with stars or being one. it's all a 180-degree life turnaround for this only child born and raised in ontario by his single mom. >> i grew up with not a lot of money. i was -- i was -- lived with my mom, my mom and dad split up when i was young. >> reporter: what kind of effect do you think that had on you? >> my parents splitting up, it's not one of the highlights of my life. it's sad, a kid experiences, you know, feeling like they left. it makes you feel not so good. but now that being in this position now, looking back, i'm so blessed. >> reporter: in recent years, the tug between the whims of a teenager and the demands of a professional f aal performer ha pulled apart many families. what's going to stop that from happening to you? >> i never want to let my mom down. >> reporter: what is your relationship like with her now? >> it's great. she's the best mom in the world. i'm with her so often, and she travels with me every day and i'm with her, like, 24/7 and it's not -- when you're, like, at school, you get away from your mom. we bump heads sometimes, but you know, we're -- we still have a great relationship. ♪ so many pretty faces >> reporter: having taken a unique road to get to super stardom, bieber says he's not about to change what got him here. people try to change you? do people say -- >> yeah, some people are like -- i try not to be, like, rude, like, but sometimes you have to be a little bit, because people try to push and push you and like, at this photo shoot, people were like, put this on, it looks real cool. i was like, i don't really like that. >> reporter: doing it his way. for bieber, it seems to have worked. just ask them. >> as long as he never forgets that unless they're there, he doesn't exist, he's good.

this clip got some 7 million

bieber landed in some exclusive >> reporter: performing for the

know, we're -- we still have a

stardom, bieber says he's not >> this is me. i'm just easy. >> reporter: i'm chris connelly i'm just easy. >> reporter: i'm chris connelly for "nightline" in los angeles. >> think of the hearing loss dangers. thanks to chris connelly for all that. coming up, the president and his family are on martha's vineyard. but can the president and his family really get away from it all?

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>> announcer: "nightline" continues from new york city with bill weir. >> as the economy sputters, the afghan war intense phipps and the debate over islam at ground zero rages, president obama is trying to enjoy a vacation tonight. for most, august is a fine time for down time, but can the leader of the free world ever for down time, but can the leader of the free world ever really get away from it all? jake tapper takes a look at the politics of presidential

vacations past and present for tonight's "sign of the times." >> reporter: the famously liberal residents and vacationers at martha's vineyard have welcomed the obamas with giddiness. with barners heralding the president and a number of obama-themed wears. t-shirts, yes with candy and over at sharky's can tina, the obama-rita and bark obama-themed ice cream. it's a popular ice cream for a popular president. >> reporter: popular. right. well, 76% of the folks here on the vineyard voted for the president, so, even if he's not pop ewe lar in your neck of the woods, he remain as rock star on this progressive island. so, everybody in martha's vineyard was excited and

cooperative, except for mother cooperative, except for mother nature. the wind and rain swept in sunday and have been relentless, knocking out power in some parts of the island. not to worry, the white house tells us. the first family is safely enskonlsed at the blue heron farm, a spacious $20 million estate the first family rented, at a cost of up to $50,000 a week. last night, the obamas hit the sweet life cafe, where the president had the new pasta appetizer with lobster and tenderloin. >> they're having a great time, actually. the rain has not dampened their spirits. >> reporter: a customer shot >> reporter: a customer shot this at a local bookstore, but there are very few images of the first vacationers. the white house says the family wants its privacy but it is true with almost 10% unemployment and troops in harm's way in iraq and afghanistan there's an extra sensitivity to images of the president having fun in the sun. or the rain. that was certainly the case when anti-war activist cindy sheehan

was camping outside then-president bush's ranch in crawford, texas. crawford, texas. >> it's appalling to me he's on vacation when we have kids suffering in iraq and when the iraqi people are suffering. >> reporter: kids are still fighting, but no protesters have been seen here. so far this has been a quiet vacation for mr. obama. presidential vacations have long before apart of the mythology of the american presidency. president clinton was a visible visitor to the vineyard. ronald reagan on horse back. richard nixon walking the beach. lbj on his ranch. jfk. it's part of the image. of course, some conservatives complained that this president is taking too many vacations. we asked cbs radio's mark kno we asked cbs radio's mark kno knoller. how does president obama stack up when it comes to vacations to his predecessors? so far, he's been on vacation, he's accumulated 46 days of

vacation since taking office. now, compare that to his immediate predecessor, at this point in his presidency, george w. bush had been to his ranch on 14 occasions, spanning over 102 days, or apart of 102 days. >> reporter: and that's what this is a vacation from the white house, not the kind of vacation to which you or i are accustomed. accustomed. the president is briefed every day by this guy, counterterrorism adviser, john brennan. >> any time that i have anything, i can do it very quickly. i can be in touch with him during the day. and i anticipate that will be the same throughout the course of the time here on the island. >> reporter: wee. this is jake tapper for "nightline." >> and our thanks to jake. when we come back, the

incumbents have a good night. first, here's jimmy kimmel with what's coming up next on "jimmy kimmel live." >> jimmy: thanks. tonight, sly stallone, levi johnston, music from buckcherry, "unnecessary censorship," and a water slide. "jimmy kimmel live" is next.

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