This is a partial transcript from "Your World with Neil Cavuto," October 25, 2006, that was edited for clarity.

NEIL CAVUTO, HOST: Meanwhile, home, maybe not sweet home — existing home sales dropping for a sixth straight month, home prices posting their biggest drop on record, and builders offering everything from new cars to extra rooms to lure in buyers.

So, why isn't my next guest worried at all? With us now is Dolly Lenz, the top real estate agent in the country three years running.

First off, Dolly, you are in real estate. You are not going to criticize real estate, right? So, that's your bias.

DOLLY LENZ, MANAGING DIRECTOR AND EXECUTIVE VICE PRESIDENT, DOUGLAS ELLIMAN: Possibly.

CAVUTO: OK.

But your — from your vantage point, it's not as bad as it has been reported to be?

LENZ: From my vantage point, it's terrific.

CAVUTO: Where?

LENZ: In — in Manhattan and the Hamptons, parts of Florida, parts of California. There are pockets all over the country that are doing very, very well.

CAVUTO: Are those pockets off their highs? Or how would you describe them?

LENZ: New York City is not off its high. The Hamptons, it's not off its high. California is off its high. And Florida is off its high.

CAVUTO: All right. But New York and the Hamptons is in a world unto itself, right?

LENZ: True.

CAVUTO: It's all very rich people.

LENZ: Not all very rich people, but it is a world unto itself.

CAVUTO: OK, impervious to what's going on nationally?

LENZ: Mmm-hmm.

CAVUTO: OK.

Nationally, the rap is, at least from the home sales data we got today, not only are they down, but the prices of the homes themselves are down, and people are worried. Should they be?

LENZ: Well, I think they're — look, I see consumer confidence as building every day.

I see people, you know, and restaurants are packed. Theaters are packed. Every place where people spend money, every place is busy. So, the way I look at it is, if consumer confidence were down, and during times where it was down, those places showed it first. Then it trickled everywhere else.

CAVUTO: OK. But there is a big difference between buying a ticket to a movie and going out to, you know, Lone Star Steakhouse, vs. buying a half-million, million-dollar condo, right?

LENZ: Oh, I agree. But you would be surprised how one impacts the other. It's — it's how people feel. If people feel comfortable and rich, then, they will spend their money.

CAVUTO: What about this notion that overheated markets — you mentioned Florida...

LENZ: Mmm-hmm.

CAVUTO: ... are beginning to cool, and that this cool will be actually a freeze, because there is such a ways to go down, because they ran up so far?

LENZ: That is possible. I mean, Florida is a unique market, in that there is a huge oversupply in the marketplace of product. And...

CAVUTO: So, they overbuilt there?

LENZ: They overbuilt.

CAVUTO: So, regions that overbuilt are the most vulnerable. Where — where would that likely include?

LENZ: Also California, lots of parts in California...

CAVUTO: Right.

LENZ: ... and places where property is replaceable. I mean, Manhattan is an island. It's not replaceable. Oceanfront is not replaceable in Florida. So, where that is the case, even regionally, I think you will see a cooling. But where it's strong or special, it will be fine.

CAVUTO: I have been told, Dolly — and I know a lot of your clients are very wealthy folks — but that they do one thing; the average person does another. The average person is skittish, because they see homes staying on the market longer.

LENZ: Mmm-hmm.

CAVUTO: And, so, they are — they're opting out.

LENZ: Well, I find inventory levels have pretty much leveled off. They had been going up for the past six months.

CAVUTO: Yes.

LENZ: This month, for the first month, they have leveled. So, I think that isn't really the case right now.

CAVUTO: OK, different point of view.

Dolly Lenz, very good seeing you.

(CROSSTALK)

CAVUTO: Congratulations, three years running.

LENZ: Thank you very much.

CAVUTO: All right.

LENZ: Nice to be here.

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