Spent all over this story throughout the day. Meals of food will be back next week for the address to the nation coverage starts at 8 00 p. M. Have a great weekend. Stay warm. Thank you for your time. Gerri hello, everybody. Im gerri willis. Tonight on the willis report. The Housing Market and recovery. Tonight the real realist a story. Despite hundreds of regulations put into place by this administration to big to fail is still a real risk. We will tell you what it means for you and your money. And one of the biggest names in fashion. Supermodel here to kick off our series of special reports. The willis report is on the case. Gerri all of that and more coming up, but first, our top story tonight, the best news in american homeowners for more than six years. Listen to this. Our nations realestate market is seeing a real recovery. Home prices seeing te largest gain since august of 2006 right before the housing bust. The index is up five and a half yearoveryear, and if that does not convince you the National Association of Home Builders reporting the recovery has spread to more than 70 percent of 361 u. S. Metro markets. Thats a big deal. Some of the things that got hit hardesest by the housing bust a loss vegas, phoenix, seattle are all coming back. Still, some of te businesses are saying housing should not be looked at as investment. But i beg to differ. Lets see what my next guest says. Founder of the corporate group. Always great to have you on th show. I want to talk to you about the comments. He says you cant think of the houses and ivestment. In addition to what he also said, youre better off renting out and buying. I think hes out of his mind and its the worst advice you possibly give to anyone in the marketplace. First off, for everyone who is out there renting, they will go up like crazy because so much of the Housing Stock that was converted to rentals by investors is going to be a debt of the market now that prices have returned to my going to be flipped, and people will raise trends, so there is no security. Most importantly if i could just say one thing, ii live it, eat, breathe it every day, the emotional card that people have toward owning where they lived. Ask anyone if they have the cash if youd rather own it or pay to rent. People really want to own where they live, and that is not a trend, that is human nature, and that aint going nowhere. Gerri dollars and cents. Human nature, but am i going to make money . And look, i think people look back at the last six years. What they say is, well, the past is prologue. These housing prices are not going to go. Gerri that isnot the case. The mood has switched. Almost everybody that is surveyed believe theyre going to pay more for that house one year from now. They are all right. Tremendous fear in the marketplace that if i dont buy now i will pay more later. Theyre right again. So these are the emotional scars that are pushing the buttons that making housing prices go up by 5 . Couple that with cheap money, plus the fact that the house is up 30 cheaper than they were five years ago, why wouldnt you buy a house . Gerri it is interesting. Of course, a yale economist, he does not know as much as people in the marketplace, regular americans are outhere buying and selling each and every day. I want to talk to you about inventory because it is tight. One of the big things that has been promoting this really i selling price. Not a ton of inventory. Is that point to change . What is going to happen to prices and inventory finally does come full bore . The inventory is not going to improve. More inventory we have the fewer houses we have to sell, and nothing that fuels a buyer more than when they lose the house they bet on and that is a strict result of a shortage of inventory. That is not going to get better but worse. Gerri maybe you are talking to your book a little bit. Here in real estate, 30 years. You love it. All people in real estate are just born optimistic. Are you overstating the case . You have to remember that i lived through three bloodletting realistic recessions and had to keep things going. I have lived it. You know what i learned about real estate that is very slow to unwind . Taken us five years, once it starts spinning its been so fast people know what hit them. From that experience i have to say this will be no different. Gerri my gut tells me that people are going to be the well, my gut tells me that people will be coming to me in twelvemonth and saying, i am so sad that i did not buy something. I wish i had. That was the perfect opportunity very happy sitting in their rental paying their landlord little bit more. Gerri that will be bob schiller, not the rest of us. Tell us more. Brakes. The 30year fixed. People are complaining because theyre saying rates are going up. Rates over time the best thing that would take this market in a double take would be a stitch up of a percentage point. All of a sudden the deadline on low prices, cheap money. Wait until you see what that does. I dont think anyone is expecting that. That is not my value. Of the people are predicting. Gerri individual markets because i know you have of you in some ciies. New york city, and that, i have to say, am totally biased and you should not listen to me at all. Is the tree because i make my livelihood here. When i love about new york city and all the cities that are really international cities, there are not that many in the united states, San Francisco, l. A. A bit, i love about it is there is always a new population of people moving in. So the japanese lose their yen value and move out, the chinese move in and take their computers of their hands, always someone, whoever is coming in. Gerri to see that more all over the country. All the forigners buying in florida. So were starting to see investors coming in the fall cash. Foreigners coming in and out of cash. Individuals, firsttime buyers, people who want to trade up. You know who is a person he should be moving even more than a firsttime buyer or international person, someone who wants to trade up because if you take less for your home today and get them, this deep discount to you are ahead of the game. People are still stalling when they should not be. Gerri named three cities that you like now. Seattle, las vegas and first and foremost new york city, my home town. Gerri so good to see you. The key for coming on. Appreciate it. Now we want to know what you think. Here is our question. Do you consder your home and investment . Log on to gerriwillis. Com, vote on the right instead of the screen and that will share the results of the end of the show. From new york all the way to california. Houses are selling again. Buyers are finally returning to the market, especially in los angeles. Fox business robert gray joins us from Hollywood Hills california with an exclusive look at a great home for sale. I hear Leonardo Dicaprio and have a very are there. Have you met them . Not yet. I am still waiting for the invite for a picnic for something. A great Screening Room downstairs for are a dozen or so of your closest friends. Im told shields two or three properties adjacent to this one in the trendy birds street area. Called nightingale, bridgeway is down the way. I always thought that was a beatles song, but there are other back story to that as well. Clearly we have seen a los angeles rket hit hard during the recession, tumbled by more than 40 percent according to the case schiller index, bouncing back off lows. The upper end, luxuriant, and standing in now is all the way back at pre recession levels. Sold more 5milliondollar homeplus years ever. Part of that to my aunt told, folks trying to sell because capial gains prices are going to go up because there is not a lot of inventory. But a lot of inventory. Coming from china, russia overlooking the pacific ocean, not too far from here, just weeks ago. Still grabbing headlines. A record sales for the area and in International Buyer who did not wish to be identified. Folks coming in from france. We know what is going on there with sarkozy fleeing the country because of the gher tax rates. This sum will set you back 7500 square feet. Its going to go for about 13 million as the listing price. Of course five bedrooms and saw the Screening Room. The pool, hot tub, views of downtown, but if you come over here we can take a look and you can see the glasses encased masters week and, of course, you wake up every morning with a view of santa monica and the pacific ocean. Gerri that is gorgeous. Have you put a bit in . I guess it is worth every penny if you have them. I dont know. Gerri it is pretty. Amazing property. Thank you for bringing it to us and we appreciate it. Youre welcome gerri special coverage of the realestate story continues throughout the show. And 20 minutes i will be joined by a famed realestate agent. She will give us a peek inside as 16 million penthouse for sale right here in new york city. There we are. A warning to congress that another financial crisis could be around the corner if we dont get rid of too big to fail once and for all. Details next. 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 todays leading companies to places beyond it. Siemens. Answers. Email marketing from Constant Contact reaches people in a place theyre checking every day their inbox. And it gives you the tools to create custom emails that drive business. Its just one of the ways Constant Contact can help you grow your small business. Sign up for your free trial today at constantcontact. Com try. Gerri watch out, taxpayers, you could be on the hook for yet another too big to fail bailo. That is the message top Bank Regulators and lawmakers are sending. They say doddfrank fails to protect your bottom line. Joining me now, director of financial affect Financial Regulation studies idicate institute. Tell me, you said current regulations, we could end up paying for yet another bailout. I have to tell you, all the democrats in washington say you are wrong. What dont they know . Well, i sent a i think they want to defend the act of the past, but the evidence is is too big to fail this year, the largest bank should be able to borrow at a lower rate than rivals. Midsized and small banks, and if you looked at the data it is clear that they can. It was not that way before the crisis. Big banks did not have an advantage. Again, i do think that the democrats on the hill, the administration was to sell you on the doddfrank works when it clearly does not to read gerri here is something. He said the limits doddfrank puts on the fed rescue authority is largely cosmetic. What do you mean . Absolutely. The change tha congress did, it said, if you do any bailout programs from now what needs to be widely available and everyone should have access to it within a certain category, but it completely leaves it up to the fed to define that category, so it is s like saying everyone is available, but you need to be 6foot even define this in a way ben wright did write. It very easy not say for my time working and the help. Ill admit that i crafted compositions here and there in the law there were only going to be targeted to one company. All the time. Im keptical that it will work that way. Theyre so much work. Gerri heres my question. Heres my question. If you believe that we have been drained to big to fail, and it absolutely exists and we could be on the hook all over again, the next step is to brk up the banks. Howd you do that . Is seems just completely impossible. Wall street will oppose you. The banks are going to oppose you. Big industry will probably oppose you generally. How could that possibly happen . There is certainly a lot of political obstacles, and that is what i think we have to keep in line with too big to fail. Too big to fail is far more a political problem that it is an economic problem. Once you set up the expectation that government will bail you out if youre too big or too complex, you have an incentive that to become big and complex. And i think what we really need to do is tie the hands of the regulators and a big way, take the ability of the Federal Reserve to bailout anyone, not just one institution for bob broadbased bailouts, restrict that to restrict the treasury ability to go Something Like a Stabilization Fund was the use to bailout of mutual funds and bail out the banking industry, you have to take that pots of money away from the regulators. As lawyers they have a big pot of money. Gerri responsibility for their own operation. The banks have to know at the beginning of the day, if you do something stupid your going to have to pay for yourself because the taxpayers are coming to value out. As the answer to the question. Absolutely, and if they know that they will change. If you believe in, they had ten different offers to be bought. He said every time, i will take less than 10 a share. You create the expectation. Therefore he acted to put himself in a bad situation. If he said of the expectation that if they mess up there will fail and will not get bailed out, there will therefore on narrow range of businesses in a way that they know there will be less likely to fail, so the real problem is knowing that that satanism beneath the banks it makes it riskier. Gerri i agree with you 100 percent. Gerri coming up next, more special coverage of the real realestate story. Albrecht on the pros and cons of the Housing Market right now and why you should not let recent history scare you away. Stay with us. There are lots of opportunities in the Housing Market, and you should not be sitting and the sidelines. Gerri at like to say it over the housing bus, but not. Im still angry, angry at home buyer sued over bought for closed banks and give out lns to anyone who could fight a mirror in the government regulators you just sat idly by. For me it is personal. My homes value is still suffering. Here is the thing. When it comes to your money you have to set a motion set in motion aside and be clear and it home prices are up nationally five and a half yearoveryear. That is the largest gain since august 2006. Median home prices have gone from a low of 156,000 to almost 181,000. Whats more, 70 percent of the nations three and 61 metro markets are in recovery of 3 from september 2011. Schiller reports that 12 months ending in november prices rose in 19 of the 20 cities it tracks. Only new york was lower. The onetime housing bust loser, phoenix, saw prices rise 23 in 20 months, 23 percent as it posted its seventh consecutive month of doubledigit returns. In the washington the market is red hot with some agents reporting bidding wars and half of the cells that make. This is enjoying its highest population of 45 years thanks to the blood of our federal government. And in austin, texas, firsttime buyers are playing catch up with rising prices as expanding jobs let that market. It is becoming clear were at the start of what may become a real realestate recovery, the best is american homeowners have had in six years. Lets stay together, yea. About time. Here is the deal. The downside to the upside the you need to know before you get excited is this, the gains particularly in prices a bit edgy because inventories constrained aslope, much of the sales of the past two years have been foreclosures , damaged properties to mark down to the bargain bin. Buyers have been professional stock foreigners, peple who can afford to putdown. Back in california third of all properties are paid for in cash. But that all means is so far we are not back to the usual market in many parts of america. The first of all meyer is eager but not dominating the market. The move a buyer is still sidelined because theyre still under water. I like real estate and that the card as its going to be a good place to be over the next several years. Here is my advice to my right. Make sure you are not overpaying in many bubble formed by russian investors are flippers inspired by di why networks. Get the facts, he rid of the motion, and make a great instment. When we come back, should checking your blackberry at home be considered overtime . Next, a realestate special continues as we go inside a 16 million new york city penthouse for sale. Plus, find out the hottest Housing Markets in 2013. The boys use capital one venture miles for their annual football trip. Thats double miles you can actually use. Tragically, their ddy got sacked by blackouts. But its o tradition thats roughing the card holder. But with the capital one venture card you get double miles you can actually use. [ cheering ] any flight, anytime. The scoreboard doesnt lie. Whats in yo wallet . Hut i have me on my fantasy team. Reporting on the return of the Housing Market. Newarks city market is booming one selling at 10 million. Dolly took uon a two or of one home and shares of great advice of many a price point. Youve been in the business 25 years. Is this a recovery. Not fullblown we will still have surprise is possibly negative. If we dont get our employment act together with the prospect of jobs, if they think they will lose their job, most people are not buying homes. Gerri jobs and housing are linked no doubt about that. Who is buying . Everybody. Movie stars, Athletes Company in the chinese, russian, everywhere wants a bite of the big apple. Gerri this apartment is swanky whether theyre looking for . Primarily location and location location. Primus fifth avenue commandeerll private schools simic said jackie o. Reservoir and she lived right there. In the middle of everything wonderful. Gerri who lived here . Mariah carey, rush limbaugh, he had a similar apartment a couple floors down, we have had many celebrities in the building. Gerri and you have a vice . Be careful. The right price, the right property, that you are not dealing or you lose. Have a long time horizon. Gerri this market, you have specific advice . Dont rush with a second bid, dont fall in love, and make it a match deal. Gerri 60 million. This is a bargain, at i have been to parties here over 100 people with a table set up and it was going. Gerri i have never received a scene in eatin kitchen it is comfortable. With the window. Master bedroom, the owner is very tall. [laughter] also a second bath. Right across from each other his theaters. If you got the 30 year mortgage, 4 interest, you are pa