diana olick takes a closer look. >> sales of newly built homes inched up in january month to mo but not even close to expectations and december's already big drop was revised down. an increase 3.7% month to month. that followed a very low pace in december even with warmer than average temperatures. now, this may have a lot to do with the jump in mortgage rates in december. newly built homes come to a price premium for existing. and homes were up 7 1/2% from a year ago in january which is really not a sustainable jump given those higher rates. the supply of new homes for sale is now at the highest in eight years. maybe that's a sign that prices will cool a bit. builders still focus on that move up and higher end buyer which is not where we need the supply. we need entry level. sales of newly built homes represent at about 12% of all sales. that's less than half of the prerecession average. clearly a lot more runway ahead for the builders if they could just step up and put up more homes. what's holding them back? labor. not even close to enough. and what is available is about twice as exp

diana olick takes a look at how the season is shaping up. >> reporter: home builderser doing more of this but not enough of this and builder confidence dropped this month even as the spring housing market approaches. their biggest concern costly overregulation which they hope president trump's recent executive order will help. >> for every one regulation two are out. >> reporter: but change will take time and in the meantime, potential buyers are facing a very competitive market. >> population doesn't stop growing. families do not stop being created, so there's lots of need for housing and we're starting to see inventory really be at a challenge. >> reporter: buyers are also facing much higher prices this spring compared to a year ago along with higher mortgage rates and very little let up in the tight lending conditions. >> i think credit is too tight in certain areas. we have a brand new type of home buyer today. we have a highly minority home about buyers going to be the majority of home ownership over the next decade. >> reporter: hispanic, african-american and indian buyers will

again, diana olick. according to real estate website trulia, flipping houses is become more popular. ralph, why is flipping back? >> prices are on the rise. price increases in 2016 were the quickest in about three or four years. and why do rising prices entice flippers? it gives them a buffer. if the flip doesn't go according to plan, we made a little bit up in equity in the house. >> is flipping different now than before the financial crisis, or is this the same old story? >> this is the most important question, right? when we see flipping reach ten-year highs, economists like us start to worry a little bit. is the housing market flipping out again? we we think more flips are actual value added improvements that investors are making to the house rather than speculative flips which is someone buying and sitting on a home waiting for the prices to rise. >> if you look around the country, las vegas is probably seeing the most flipping activity. why is las vegas seeing that type of activity and what other m

. >> diana olick thanks. according to trulia, flipping has become more common. ralph, thanks for being here. >> happy to be here. >> why is flipping back? >> one reason, prices are on the rise. price increases in 2016 were the quickest in about three or four years. and why do rising prices entice flippers? it gives them a buffer. if the flip doesn't go according to plan, they've at least made a little bit up in price gains and equity in the house. >> is flipping different now than it was before the financial crisis or is this the same sold story? >> this is the most important question. we see flipping reach ten-year highs and economists like us start to worry a little bit, we think it's different this time because we think more flips are actual value added improvements investors are making rather than speculative, someone buying and sitting on the home waiting for prices to rise. >> if you look around the country, las vegas is seeing the most flipping activity. why is las vegas seeing that type of activity and what other markets are seeing this bubble up? >> las

diana olick has more. >> reporter: did you ever want to work out in one of those elite boutiques, manhattanitness studios, but you live, say, here? or here? >> one, two, three, four, five! >> reporter: now you can. kind of. >> i realized the power of the studios. >> reporter: she was a wall street trader who traded it in for fitness and launched a tech company that's putting live cameras in the corners of boutique studios. >> these studios are very professional. when these trainers put that mike on, they're doing a performance. >> reporter: that performance streams out live across 4k's web platform. for $39 a month or $288 a year, anyone, anywhere, can stream any class. >> over the course of two years the pitch has become very simple. everybody wants to be streaming. my job has become a >> reporter: the studios get a cut of the subscription fees but they also get something else very valuable. >> from the streaming, that's always great, but i think the exposure to the brand and what we do is for us, number one. >> reporter: these are live streaming classes. but they're also live paying clien

back to you guys. >> diana olick, get to work. a house right behind you needs built.ery much. >>> gold rising, hitting a three-month high. stealth gold rally? let's get a move on with the trading nation team. erin gibbs, what do you make of this? no one is talking about gold. it's been pretty good. >> yeah. we really see this as heightened geopolitical risk. there's a lot of stuff going on with the french elections, german elections coming up later. there's concerns about a frexit. so, the dollar has weakened slightly in the past couple of days. but this is really something we see as temporary, not long term. we don't see it as an opportunity to get into the gold miners. though, they're up about twice the rate as the s&p 500 for the year, we really see this as something that's coming back down. they've already started to come back and retract since the beginning of february. and we don't see this as a long-term opportunity. just a little more volatility and risk. >> okay. would you agree with that, zach? are you a gold lover, gold hater or don't even think about gold?

diana olick live in washington, d.c.h new data. >> mortgage applications to buy a home are finally a little bit higher than a year ago even though rates are a lot higher. rates are not the problem. it's lack of listings, leading to a lot of mismatched markets for this spring's housing market. what's mismatched? the type of supply and the type of demand are seriously out of wh whack. trulia measured searches versus available listings and found that, of course, it comes down to price point. starter, trade-up and luxury. there is a significant shortfall in starter and trade-up homes nationally and a large surplus of luxury listings. 27% of all searches nationally for starter homes, only 21% of listings in that category, though. on the luxury side, 44% of searches were in luxury and 45% of listings were in luxury. top ten most mismatched markets on average, four in texas, dallas, followed by houston, charlotte and raleigh. florida also grabs two spots and greenville, south carolina, and grand rapids, michigan, round out the

let's get to existing homes with diana olick. e sales in january up 3.3% to a seasonally adjusted annualized rate of 5.69 million units. that's a surprise to the upside. the street was looking for a drop. that's month over month. and december was revised up slightly. we're seeing the strongest annualized home sales since february of 2007. so in a decade. back then it was 5.79 million. it's up 3.8% year over year. interestingly sales were up the most in the west where homes are most expensive. biggest price gains though were in the south. overall the national median existing home price for a home sold in january was $228,900. that is up 7.1% year over year. and of course way ahead of income growth. why? because of inventory. 1.69 million units for sale, that is down 7.1% year over year. and that's just a 3.6 month supply of home for sale. that's why you're seeing such high prices. days on market just 50 days. a year ago it was 64 days. now, remember, these are closings in january. so they're based on people out shopping in november

next, february read on nationalization of home builders price index and for that we go east to diana olickick, it's actually sentiment index and the sentiment was down two points to 65 on the national association of home builders monthly survey. that's the second month of declines after a sharp spike in builder confidence following the presidential election. anything above 50 is considered positive, so still well in that range. the survey stood at 58 one year ago. nahb said builders are optimistic but settling back to a, quote, normal range. of the index's three components current sales conditions fell one point to 71, sales expectations in the next six months three points to 73, buyer traffic down five to 46. carl. >> diana, thank you very much. as we said the president meeting with some ceos of large retailers. eamon javers is there. eamon? >> reporter: are you expecting ivanka trump to be in the meeting, sir? i'm sorry, carl, as you can see the ceos are walking in here at the west entrance of the white house. just talked to the ceo of target who said he expected a productive meeting. th

diana olick. >> nice beat in q4.arnings came in at 14 cents a share compared to estimates of 11 cents per share. that's on revenue of 227.6 million. the street was looking for 222. so that's higher than guidance also. it was up 34% year over year. traffic was up a among all of zillow brands. 140 million average monthly unique users, that's up 13% year over year. they saw a big increase in revenue from other column that includes rental. for the full year zillow set annual records. 846.6 million. up 31% from 2015. again, above guidance. and zillow group says it expects to continue to grow revenue in 2017 and surpass $1 billion for the first time. now you can expect to see a lot of demand in this spring housing market. we're already seeing it and it's early february. that will mean a lot of traffic and a lot of clicks. doesn't matter if it turns into sales as long as they're getting the strong traffic which we continue to expect. >> that's the point. plus, it's fun to look around. thank you, diana. >>> pretty much every

let's get a realty check with diana olick. >> reporter: pending home sales fell in january because there's supply. pendings are signed contracts, shoppers out in the market. out west demands are the highest. even in the midwest where prices are lower, short demands kept buyers out on the hunt. in l.a. more than 120 people had already listed this as a favorite. house is in a great neighborhood and was priced very well and nearly a dozen shoppers were knocking on the door even before the start time. >> this spring rush has officially begun and sellers who price their homes competitively can expect to see a lot of action. typically for a home like this, we would expect to see upwards of 15 to 20 offers. >> emily leech has been looking for a home for several months. she wants something urban but hasn't been able to win a home yet, not one she can afford. >> we actually had a house that we saw that we really liked in south central los angeles and we tried to make a move on that and we got outbid. >> a house last week with the same comps had 66 offers. supply is worse at the entry level which, u

dia diana olick has the story. >> it's triple threat. incomes are not keeping up.ing affordability dropped to the lowest level since 2010. it now takes just over 22% of the median income to make the monthly payments on the median priced home. that's not the highest we have ever seen. if 2005 at the height of the boom it took nearly 35% of the median income to buy the median priced home. but remember, this is all based on math for a 30-year fixed mortgage and back then people were using, shall we say, creative mortgages with no money down and teaser rates. today, the vast majority are 30-year fixed and that's why looking at the gains now is much more important. nationally, monthly paymented increased 10% in the fourth quarter of last year alone. that's a median half of home buyers, seeing a bigger hit to the wallets and half smaller and then drill it down and changes are more dramatic. new york, dallas, miami and boston have all seen bigger gains in monthly housing payments in the three months of last year. than the rest of the nation. the gains most dramatic the en

. >> i was talking to diana olick, our real estate guru here at cnbc.is is a market that is absolutely on fire thanks in part to this trend you're talking about. what about the economics of renting a home versus buying a home right now? >> i think it's a little bit about lifestyle choice. the average age of our renter is -- and we like to say those who lease with us, are about 39 years old. they tend to be both working family, so both of them are working. they want to live near where they work and typically are looking for a good school. so they have children and, you know, they're just at that stage where they're moved from apartments to over into the suburbs. >> i guess what i'm wondering we just got another read on home prices for november, up another 5%, they've been steadily climbing to near prerecession levels, have you seen the same with rental prices? >> rental prices do tend to follow home price appreciation. and there is a shortage of housing in the united states right now. >> well, you had rent increase of i think 6.5% in the last quarter. th

diana olick has more. >> hi, kelly. past six years there has been a staggering takeover in the mortgage market. large banks plagued by billion dollar government lawsuits began pulling back especially with government ensured fha loans. that left the door open for non-bank lenders. these companies are also regulated but they're newer and they did not have all the leftover troubled loans that the big guys did. so take a look at the growth of non-bank lenders from 2010 to today. from just 10% of the market to more than half of it and beyond, names like quicken, loan depot and caliber home loans have moved into top spots for originations. now if the trump administration loosens regulations and big banks and stops suing for every infraction, will the big banks move in and the non-banks face stiffer competition? the ceo who used to run citi mortgage sees that and another threat. >> i fully expect that the banks will also step up, you know, their exposure to lending a lot more, and i expect it to be more from the regional banks

kwa >> let's get to diana olick. >> pending home sales down 2.8% down month to month in the lowest levelprised. pending home sales are a measure of contracts signed in january. so they represent closings in february and march. this is a weak start to the year. and the realtors are saying it's all about affordability and lack of supply. home prices gaining very strongly because there's strong demand and near record low supply. and as you recall we saw mortgage rates jump sharply after the presidential election, so january would have been really the first month people were out shopping with those higher rates and those higher prices. you can see it in the regional look. northeast sales up 2.3% for the month, but in the midwest down 5%, which is surprising given that the midwest has the cheapest homes. in the south sales up just 0.4%, but in the west where homes are most expensive and in the least supply, pending home sales down 9.8% for the month and down 0.4% for the year. again, we saw that weak disappointing sales in new home sales last week and now starting off the year for existing ho

catata at'stiinking4 's tm iror alue of catata >>> we have a special visitor on set this morning, diana olick made it to new york before the snow. she has an exclusive guest who also made it. >> big news in fitness. a major announcement from one of fit tech's leading disruptors, pelaton. they have seen huge growth since announcing a home cycling platform. 20 minutes from now, the ceo, john foley, will announce he's naming former barnes and noble ceo william lynch as pellaton's first president. congratulations on the new post. tell us what your appointment means to the future growth of this company? >> the company has huge ambitious growth, and if you think about the flat form built with the fitness experts, we're expanding in other categories of fitness. to date with all the success we had, including tripling revenues, that's been largely in the u.s., you can think about geographic expansion, we have enormous demand from customers to seat bell the bike and provi services. i will help the team drive momentum. >> you talked about growth, john foley, i talked to him yesterday, every other word o

diana olick joins us with that story. >> for the past six years, there has been a staggering takeovermortgage market. large banks plagued by billion-dollar government lawsuits began pulling back, especially for government insured fha loans. that left the door open for nonbank lenders. these companies are also regulated, but they are newer and didn't have the leftover trouble loans the big guys did. so take a look at the growth of nonbank lenders from 2010 to today from just 10% of the market to almost half of it and beyond. names like quicken, loan depot, and caliber home loans have moved to the top. if the trump administration loosens regulations on the big banks and stops suing for every infraction, will the big banks then move in? the ceo of caliber home loans, who used to run citi mortgage, sees yet another threat. >> i fully expect that the banks will also step up, you know, their exposure to lending a lot more. i expect there to be more from the regional banks than major banks. >> so smaller regional banks, which have seen big market share. now, higher interest rates will also m

diana olick has more on this story. >> that's why i'm surprised you talk about denver, it's not winningn the affordability area. both home prices and mortgage rates are rising, and incomes are not keeping up. as a result housing affordable dropped to the lowest level since 2010. it now takes just over 22% of the median income to make the payments on the median priced home. that's not the highest we've seen. in 2005 at the height of the housing boom it took nearly 35% of the median income to buy the median priced home. but remember, this is all based on math for a 30-year fixed mortgage. back then people were using, shall we say, very creative mortgages with no money down and teaser rates. today not so much. the vast majority are 30-year fixed. that's why looking at these gains it's much more important. nationally monthly payments increase 10% in just the fourth quarter of last year alone. that's a median. half of home buyers are seeing a bigger hit to the wallets, and half smaller. drill it down to certain local markets and the changes are more dramatic. new york, dallas, miami and bost

let's ask diana ol olick. she can give us answers. >> hi, kelly. swanky toll brothers manhattan condo and toll pays the taxes. mansion taxes and new york city transfer tax. add them up that's 2.5% discount which can add up to a lot when you're talking about a condo priced up to $13 million. right there on two new projects, one in chelsea and one in the west village. it's part of the national sales event that happens at differ times of the year. the sales event offers a limited time opportunity to take advantage of exclusive money-saving incentives which vary among communities and regions. now obviously developers offer incentives all the time, but this is a big one and when you look at the latest stats on new york luxury development, you can see why. these are from jonathan miller with douglas element. here are the red flags. the median price for new construction in the last quarter of last year was up 44% year over year but closed sales were down 13%. here's the kicker. inventory up 34%. that is not a cocktail that's not going to make any develope