but redfin encore brokerage. it is because the housing market is doing well and some of it is because we are >> let's talk about redfin now and the house flipping business. others got into it as well some of your competitors among them i wonder how you assess the risk of that. mother, you have to go out and i guess borrow and buy houses, carrying that asset on your balance sheet and then fix them up which is an outlay of cash and then hope you can sell them at a profit. >> i think we're more careful about that risk than most of our competitors. others are more bullish on opportunity. i know that we can get more efficient over time but still a challenge to try to take a real estate process that involves us owning the house, cutting the grass, paying the electricity bill and make that cost competitive with just selling your house directly the to a consumer i think consumers will pay a premium for a convenience to get an instant offer but the question is how much of a premium will that be and we feel very careful ab

it is great to see a pre-happy holidays to you in the redfin team. the stock is up 39% year to date, 30% up year over year market capital $8.000000000. cdb stocks, they are coming off their highs with the closing will regain in 38 minutes the dow up 27 points, the food and drug administration sending warning letters to 15 companies for violation including marketing unapproved drugs, selling cdb as dietary supplements and other issues. no publicly traded cdd companies got the letter but they're all getting swept up in the tsunami that is tumbling them down at the moment. everybody from charlotte's web. we are watching all of this and more, up next to wework founder adam neumann holding on very tightly to his billion dollar parachute but the former employees make it more of the problems left behind in the startup new deal with softbank. charlie gasper rena running down to the exclusive tender, when "the claman countdown" comes right back. we are on track for three brand-new record closes. stay tuned to witness it. liz: apple dictator taken off new clai

darrel is chief economist at redfin.joining us tonight. >> thanks for having me. >> affordability is the biggest issue fatesing the housing relief coming in tha regard ee into the new >>year. ell 2019, buyers have a lot of challenges out there when it comeso afford abili preponderates came down and and the market slowed a bit which gaves a better taheton 2018 ob 2017 fewer bidding wars. but the underlying problem is still prices. >> and what about mortgage rates? we saw them tick up tod. but historically they're sti low. but consumers seem to be extremely sensitive to those smallri ions. >> mortgage rates are low from a historical perspective.y any time t tick up or down it does impact how much you pay every month. but most buyers are looking for a home in their price range where they can afford the downpayment. and that matter more than just the monthly mortgage payment changing by a few dollars. >> supply is of course a big issue. home builders have been retict about building new homes. but i was reading the first time

that jolt people into the housing market or driver them aw away with me is the chief e ceconomis at redfinates now we made a big comeback since august >> make no mistake they are still pretty low as we look at them historically. we did see a big jump up in the last couple of weeks and the highst level than three months every time we see rates pop up a little bit, that drops several million people out of the refinance population that's because so many people already have low interest rate lows when you talk about people who want to save money, this is knocking people out. even the small moves higher. >> daryl, how sensitive to you think buyers will be to a slight increase in the mortgage rate. very sensitive or not at all >> homeowners have a lot to consider when it comes to buying a home it's what they think about their personal income, employment situation and how likely they are to find the home that's right for them while mortgage rates impact a little bit i think what's more important is the fact the economy seems to be doing better than people expected and that matters more to people.

. >>> redfin did a study and discovered people are staying in their homes longer.ans fewer homes are up for sale nationwide. part of it is seniors, deciding to age in place. many states offer property tax reductions for seniors, so they stay in their homes. it's a good example of what sounds like a fair and decent thing to do, hurting the housing market. example of that. many economists say rent control discourages building, which drives prices up. >>> elon musk says he knows why the windows broke on the cyber truck. you may recall they threw a steel ball at it, in much of a disaster. musk says this, hitting the truck with the sledgehammer earlier loosened or damaged the windows. he says they should have done the window demonstration first, and then did the sledgehammer. >>> and ford is calling shenanigans on a tesla demonstration where a cyber truck pulls a ford f-150 uphill though the ford is trying to drive the other way. ford and other commentators say this isn't about engine power. it's a matter of traction. physicists would call this friction. a tug-of-war is