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somebody's name i know well, diana olick. diana, thank you.ou first, diana, how many markets are we seeing a shortage of foreclosures in? >> well, we are actually eating them in the markets where we saw the biggest distress. that is out in phoenix and parts of california. you see supplies so low there we are there are investors waiting for the next foreclosure to hit the market. i would be interested to find out what kind of competition are you seeing out there? you are putting the money out there to see foreclosures and are you seeing competition to the point pricing out some of these you want to invest in. >> that's a good question. thanks for inviting me. we were heavily into phoenix. two years ago. we have been in california for a similar time. those markets are heating up and it -- in those markets depends on relationships. how many channels can you access the market through. and -- part of our recent merger, we have developed more markets. we are now in eight states and we see a shift more to the east. states like north carolina, georgia

cnbc's real estate correspondent diana olick is here with what's moving your money.mbers out this morning that are giving us this thought today. >> absolutely. but still controversy here. popular real estate site zilo is calling a home price bottom, as you say, but others say, not so much yet. now, home prices on the zilo report were up barely, 0.2% in the second quarter of this year, but that's the first year year over year in home prices since 2007. prices have been up on the zilo index for four straight months. nearly one third or 53 of the 167 markets covered by zillow showed annual increases in home values. the biggest increase came in phoenix, where prices are up more than 12%, and that's important, because it's in the most distressed markets. with all that investor competition and low inventory that we're seeing the biggest price gains, of course. now, that has analysts over at another shop claiming that some markets are overshooting and becoming price bibubbles. they say the strong demand in arizona, california, and nevada are pushing prices up quickly and sh

we have the details in today's realitity check with diana olick. >> the numbers are coming off of a realtively strong spring season, but it's unlike any other that we have known. that is foreclosures and short sales. take a look though, prices are up in the northeast and the south. pretty flat to lower in the midwest. the big gains are out west where the distressed markets are. the higher the volume in the foreclosures market, so many investors are competing for that limited supply. take phoenix where 23% are foe closed homes. minneapolis where 35% are foe closures, and in columbus where it's up 14%. it's counter intuitive that some of the best selling markets saw the largest price crashes in the housing bust. it ranks san jose california, san francisco, las vegas, and phoenix the top sellers. and the top pbuyers markets. as banks try to modify loans, that's really going to mess with the numbers. the sales, the prices, the volumes, the supply, everything. this housing market is running on distress, and we have more numbers on the web. >> thanks, by the way, behind me the new spam mascot, sir c

we have the details with diana olick. >> yes, the home ownership rate is around 15 year lows, but theumber of vacant homes is coming down. existing home sales were up in the first half of this year. the realtors have shot put out official numbers yet, but looking at the raw data we know that is the case. home ownership is down from 66% to 65.6% now, and it's hoovering around that lowest rate since 1997, so why is a home ownership rate not move something investors are making up 27% in sales and more. so investors don't occupy the homes meaning they don't move the home ownership numbers. they are not included unless the home is owner occupied. the rental vacancy point is down to 6.2%. renter nation is raging on which gis more pricing power to those renting out. again, rents will be going up. for more, of course, we're going to realtycheck.com. >> the home builder index is up more than 7% over the last month. is it too late to get in on this strend in on the deck nick kal side of things, we have jc ohara. let's talk numbers here, how does it look to you? >> it looks great to me. it's up

. >>> key numbers out today on the state of foreclosures in the usa and diana olick is live for us in washington. diana? >> reporter: well, that's right, tyler. the numbers are growing again after over a yearlong lull. new foreclosures up 9% according to realty track. the first jump in quarterly started since 2009 before that whole ro bo signing paperwork scandal. now that the bank settlement is in place, they're churning through the loans quickly. 31 states with annual increases in new foreclosures. 18% jump in california. catapulted the state to the top foreclosure rate, the first time since the crash. new wave may turn around some of the home price gains seen of late. rising prices on a negative equity position to 11.4 million to 12.1 million. the homeowners still can't move and more important is they can't refi and take advantage of today's record low rates. a new record low on freddie mac, 3.56 on the 30-year fixed and probably will get better than that. more on the blog, of course. simon? >> thank you very much. >>> let's go to where it's worse. san bernardino, california, bankr

diana olick is live in washington. hi, diana. >> reporter: that's right. the surge in single and multifamily starts and permits exceeded completed projects so more jobs coming for construction workers. that said, single family housing starts in june 539,000, seasonally adjusted annual rate, a two-year high up 4.7% from may and up near ly 22% from a year ago. they are still however 62% below the peak in july of 2006 and remember starts historically average around 1.5 million annually. multifamily was up 17% in june, month to month and up 29% from a year ago. that responding, of course, to a continued hot rental market. the northeast saw the biggest gains in single family starts but it represents a smallest share of the market. the south saw the smaller gains. to keep it in perspective, new homes less than 10% of the housing market and some analysts are warning these gains could moderate in the second half of the year as broader economic weakness weighs on demand. simon? >> okay. thank you very much. >>> we should mention that shares of vivus popping today,

diana olick has the numbers. >> hi. home prices are recovering. as we have said so many times before, largely on the low end where foreclosures and short sales are selling the most. look at new findings from clear capital which uses a rolling quarter to gauge home prices. the prices are up modestly in the nice and south. pretty flat midwest. the big gains year-over-year are out west your most distressed markets, phoenix, vegas, hart hit parts of california and biggest gain is homes prized under $100,000. the high ther gains for volume of foreclosure, that's counter intuitive, isn't it? no. it's true. so many investors are competing for a limited supply of distressed properties. phoenix, 20% of sales of foreclosed homes, prices up 20%. minneapolis, 35% of sales are foreclosures. prices up 13%. columbus, ohio, home prices up 14% because 27% of that market is foreclosure sales. the only one bucking this trend is atlanta. 44% of that market is foreclosures. prices are still down there but that's because atlanta is still mired in the worst of its forec

diana olick is back with us from washington. hi again. >> reporter: that's right. hi again.builders seeing big gains and new orders, the depressed land market is suddenly cooking with gas again. there is a catch. builders need finished lots, all the infrastructures in there just missing the house and need them in prime locations. that's where piedmont are buying right now. demand for those lots will exceed supply in the second half of this year according to john burns real estate consulting. 40% of land brokers they survey ed rated it as "on fire" or "hot" in qe-1. and finished lots, prices were up in q1. now, lenora andn the most aggressive. demand is hot in texas and d.c. lennar just bought a parcel and outbid nvr for it. nvr's stock is an outlier while everyone else's stock is up. they managed very well in the housing crash and analysts liked them because they were land light and now they need more land. >> kite ty holmes announced the acquired land in danville, california, the bay area to build 84 single family homes. in phoenix, really land strapped, you look on kb's we

diana olick is live in washington. are the home sales numbers a disappointment or some of that factored in, diana? >> reporter: it was a big disappointment, sue. sales of existing homes took an unexpected drop down 5.4% month to month and due to lack of supply on the low end and where the investors had been active. just take a lock at what's selling and how that is changing. sales of homes in the 0 to $100k range down 8% month to month. in the 250 to $500a up 17% and plus 1 million is up 12%. 65% of today's home sales are below a quarter mill. that's the problem. and that's skewing the price numbers. realtors reporting the median price of a home up 7.9% from a year ago but for the third straight month that big jump is not necessarily real. it's due to a change in the mix of homes selling. not true appreciation. now, it is that lack of supply of foreclosed homes due to new laws, legal settlements, overprocessing slowing things down. invest or thes out there. inventories of all home sales down 24%. homes for sale down 24%

from the world of real estate and diana olick in washington with more on the run-up of the apartment ctor. hi, diana. >> that's right. the apartment market is still hot. fueling that sector with higher rurnls as investors want to buy more, the lack of supply pushing up prices for the best properties. that's in a second. take a look. vacancies down to 4.7%. we haven't seen that since the end of 2001. 25,000 units absorbed in the quarter which is a little less than q1 and still running very high. analysts say the slight slowdown is more of lack of supply than demand. landlords watch that level as a major benchmark dipping three times in the past 31 years and that, of course, is when rents spike. the market is short about 2.5 million units for the demand sen pushing up price returns. analyst goldfarb likes post properties because it invests in the sun belt where property prices are not as high as the coast and returns are, of course, greater there. now, investors looking for lower cost commercial real estate according to analysts are shifting to the still struggling office sector because

to diana olick in washington. >> the decision is finally in. fannie mae and freddie mac's conservator said he will not allow the company to participate in the mortgage production program that allows lenders to write down balances. he cites moral hazard and potential danger of strategic defaulters. worse is principal forgiveness rewrites a contract and could hurt the overall willingness of banks to lend. treasury secretary timothy geithner responded immediately asking demarco to reconsider saying the use of targeted reproduction would provide much help to a significant number of troubled homeowners and help repair the nation's housing market and result in a net benefit to taxpayers. >> big news. sounds like a battle is brewing in d.c. thank you very much. here's what else we have on tap for "street signs." we have a street fight. bill gross saying the cult of equity is dying and calls out professor segal. he is here to respond. herb is all over herbal life. and responds to criticism, a rare interview you will see only here. >>> scary new stats o

diana olick is live in washington with the details on that. >> reporter: that's right.ve americans lives in a community with a homeowner or a condo association, the ones where you pay monthly dues for extra security or getting your lawn mowed. by law when a bank forecloses on a home in one of those associations and takes possession, it must start paying the dues. but in many cases, the banks are not. so the associations are turning the tables, filing foreclosure on the banks. >> the association has both a statutory right under the florida laws as well as a right under its restricted covenants in the community. and it pursues those rights for just like any other owner. the main thing to focus on here is in this legal scenario, jpmorgan is no different than any other homeowner in the community who has failed to pay. >> reporter: attorney ben solomon is representing homestead florida's keys gate community association claiming this home has two years of back dues owed by jpmorgan worth over $19,000. it is one of dozens of foreclosure suits against several of the nation's la

dia diana olick is live for us in washington. >> reporter: you're right.m a year ago, take a look. the number of signed contracts to buy existing homes fell 1.4% in june month to month from a downwardly revised may figure. this is the national association of realtors for existing home sales. the realtors blame it on a lack of foreclose juries and they're imploring the banks saying any bank-owned properties should be released expeditiously to help meet market demand and may get the wish because a new report of realty track shows in the first half of this year foreclosure activity did rise compared to second half of last year and seeing gains of over 20% in foreclosures in cities such as philadelphia, chicago, new york, tampa and baltimore. but in the west, not so much. and that's where most of the investor activity is. sue? >> diana, thanks. >>> facebook shares trading below the ipo price of 38 bucks. social network set to report the first quarterly results as a public company today after the closing bell. of course, we'll have it for you. where do you thin

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real estate reporter diana olick is digging through reporting of banks.ie why that, jpm one of the first big banks to report. looked pretty good. can we expect the more loans and more housing, good news to come from other banks, do you think? >> you have to look at when's happening in the mortgage market. first of all, we saw wells fargo originations way up, as well. wells fargo, jpmorgan, they're in the mortgage market in one and two because bank of america and allied financial pulled back on lending and shares changing. a lot of smaller lenders out of business, a lot of them not doing that anymore so you have a certain consolidation in the market. now, as you say, a lot of those are re-fis and nothing wrong with that. puts money in the people's pockets but the mortgage market right now, 77% in the survey of the mortgage bankers association they were re-fis. check out the chart there. a surge in june with a new change in fha rules and surge in january because of the government's underwater refinance program so again a lot of re-fis. we need to see more p

smaller part of the economy is always a good litmus test, existing home sales, you know, yesterday's diana olick the housing market but we had a good starts number and it included single family and some of these other data points like national association of home builders index jumping to 35. so we could quibble about the fact we're coming off of really low levels but stabilization is a good thing in housing. back to you. >> all right, rick, stick around. let's get more on the numbers. steve liesman is here on the set. >> i wish i could give you more, becky, but i can't figure out what they're saying the statistical quirk was. was it last week the decline or this week the jump up. i'm still reading here, labor department officials said they were experiencing volatility related to the auto layoffs that usually happen at this time of year. but they're not laying people off. so that should i think create a lower number -- >> a higher number, would it be over 400? >> in other words, well remember the seasonal adjustments expected, and looking at a seasonally adjusted number. go back and see if i can

let's bring in diana olick with more breaking news on that sector. >> homebuilder sentiment jumped sixy to 35 on the national association of homebuilders index. the largest monthly gain in over a decade and puts it at its highest point since march of 2007. the builder's chief economist notes this is an encouraging sign at a time when other parts of the economy have begun to show softness. current sales rose six points each. sales expectations over the next six months rose 11 points. regionally, the the northwest saw a gain, the south up five and the west gains 12 points and it is out west where we had seen the big competition from properties, but that has dropped off sharply in the last six months. david? >> all right. thanks very much. >> it sounds substantial, doesn't it? that sounds, steve, are you still with us? that sounds substantial on housing. >> that's a big number. there's no doubt about it. and it's a bit contradictory. couple of contradictory threads in the economy. housing being one of them. you also saw today when we reported the inflation numbers that average weekly earn

let's go to diana olick for more on that. >> this is another big negative simon.e sales down 5.4% month to month to 4.73 million units. this is a big disappointment. the street expected an uptick. this is something we have been predicting. why? because this market has been running on distress supplies of short sales and foreclosures. that supply is running out. out west sales down 6.9% month to month but in the zero to $is 00,000 range out west sales down 36% from a year ago. that's your foreclosures and short sales coming off this market and that is reflected in the median home price. realtors saying it's up 7.9% from a year ago. to $189,400. no home prices are not up 7.9%. for the third month in a row they are telling us this is a change in the mix of homes that are selling. the bottom part of the market is dropping out and more homes are selling in the upper tier but just not enough. that is why we see the 5.4% drop. >> a little economics here, if there is a lack of supply of something then the price should go up. so i'm just wondering if it's all -- >> not in