This is a rush transcript from "Your World With Neil Cavuto," August 19, 2008. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: You know, we were talking about the lousing housing market. It's not lousy everywhere. And it's not standing everywhere. Just ask Martha Stewart, she marking the one-year anniversary of that deal she had with KB Home that she helped create in Colorado. Remember that? Not only are they selling well. Prices are actually holding up very well. It seems that everyone wants a piece of Martha.

So, what is her secret?

She joins me now by phone from Denver to explain.

Martha, good to have you. What is going on here?

MARTHA STEWART, FOUNDER, MARTHA STEWART LIVING OMNIMEDIA: Hi.

Video: Watch Neil's interview with Martha Stewart

It's — it is really nice out here in Denver. It's very interesting to see Stapleton Airport transformed into a residential area. What a great piece of urban planning.

CAVUTO: Now, what is the deal with the KB homes that are tied to you? Are they decorated by — what — tell me what is going on.

STEWART: Well, we have — we have taken houses that KB originally designed and added our architectural features, our interior architectural design, our special details that you will see in the pages of Martha Stewart Living magazine, for example, or in my books, and incorporated all of that into a reasonably priced, very economical-to-run, and beautiful home.

We have three models here with six variations available to the buyer. In the first year, we have sold 43 homes. Thirty-five will be occupied by December. The people who have bought the homes so far — I just talked to a whole lot of the homeowners. I am — I'm right here at the community. They are so happy with their homes. It is very nice to hear. And they're...

(CROSSTALK)

CAVUTO: What are some of the features that you added? I know every builder tries to customize, or tries to do something, but I know a lot of your appeal is built-ins and all that.

(CROSSTALK)

CAVUTO: Go ahead.

STEWART: Remember what the price points are. I mean, these houses start at about $300,000 for a three-bedroom, three-bathroom house. That is very reasonable, any way you look at it. And these are expendable homes, too.

You can — and they have — they have features in them that can be changed very easily by interior decoration. But, for example, the Katonah house is a two-story house, beautiful detailing, wonderful paneled living room, vertical paneling, all painted white, bookcases, a fine mantelpiece, very much like you would see at my Katonah home in Bedford, New York, because that is what we base these homes on, on homes that I have actually built, actually live in.

CAVUTO: Interesting.

STEWART: And — yes.

CAVUTO: Let me ask you. You are in Denver. That's the site of the Democratic Convention. Are you going?

STEWART: No, no, no. I am going to be in Mexico filming some segments for my television program.

CAVUTO: I know — and you have explained to me how you can't vote and all that.

(CROSSTALK)

STEWART: Oh, I can vote. I can vote now. I got my...

(CROSSTALK)

CAVUTO: Oh, you can?

(CROSSTALK)

STEWART: Yes. I got my voting registration card.

CAVUTO: I'm sorry. I'm sorry.

STEWART: Everything is fine.

CAVUTO: Who are you going to vote for?

STEWART: Well, I am a Democrat.

CAVUTO: Right.

STEWART: And, so, take it from there.

(LAUGHTER)

CAVUTO: I know you were a big Hillary Clinton supporter.

STEWART: I was.

CAVUTO: A lot of Hillary Clinton supporters, Martha, have been telling me they're — they're none too pleased. They feel like they have been sort of sidelined. And they don't know if they are going to support Obama.

STEWART: Oh, well, I think everybody better make up their mind soon. It's time for a change.

I mean, we have to — we have to somehow jump-start our economy again. We have to get things going. The one good — the good news in this terrible housing starts dip again is that it will help clear the existing inventory that is out there.

CAVUTO: Some fear, though, it's going to take a long, long time.

STEWART: Well, it looks worse than — you know, it looks worse than we all hoped. But — but I hope that — that the existing inventory will be cleared out. People do need to move. They need to — they need to buy a house. Young couples really need that.

CAVUTO: OK.

STEWART: And this is where you can come, not only to Denver, but to any of these KB Home communities, where...

(CROSSTALK)

CAVUTO: All right.

STEWART: ... real good value. And they are energy-efficient.

CAVUTO: There you go.

STEWART: OK?

CAVUTO: Thank you very much. Always good chatting with you. Have a pleasant trip.

STEWART: Well, thank you. You have been traveling a lot. I will see you soon.

CAVUTO: All right, Martha Stewart.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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