Transcript: Priced Out of the Market

This is a partial transcript from "Your World with Neil Cavuto," December 22, 2005, that was edited for clarity.

DAVID ASMAN, GUEST HOST: If you can't afford a home, you are not alone, homeownership now out of reach for many Americans. A gauge known as the housing affordability index is at its very lowest level in 14 years.

But don't lose hope. There are still places you may be able to afford that you don't know about.

My next guest does know about them. She's Barbara Corcoran, founder of the Corcoran Group.

Great to see you, Barbara.

BARBARA CORCORAN, FOUNDER, THE CORCORAN GROUP: Nice to be here.

CAVUTO: So, not Manhattan, right?

CORCORAN: Oh, certainly not. In fact, the cities are the least affordable, particularly the coastal cities. People have been priced right out of...

ASMAN: So, either New York or California, forget about it.

CORCORAN: Forget it. Well, if you're rich, you shouldn't be forgetting about them. They're still a great bet. You're still going to make money.

ASMAN: Yes.

CORCORAN: And you're still going to live in a luxurious place.

ASMAN: But, for most of us, where do we go?

CORCORAN: Well, there's a lot of good cities.

I think the top five, right now, in terms of affordability — may I read my list?

ASMAN: Sure.

CORCORAN: Oxford, Mississippi; Phoenix, Arizona.

ASMAN: Oh.

CORCORAN: Long Island City, New York, which is just south of New York City.

ASMAN: Yes.

CORCORAN: Jacksonville, Florida, and, of course, Portland, Oregon, if you like rain and green gas.

ASMAN: Now, can you talk about generalities? I mean, how — what price range are you talking about here?

CORCORAN: Well, I think anything right now that's priced under $190,000 for an average home in a community is unusual. And that's where...

ASMAN: Yes.

CORCORAN: What you will find in Jacksonville, Mississippi...

(CROSSTALK)

ASMAN: For $190,000, you can get what kind of a place?

CORCORAN: A big house with three bedrooms, great condition, not the kind of house you're going to apologize to as you invite your family over.

(CROSSTALK)

CORCORAN: And, if you really want to splurge and you want get a rambling house, of course, if you go to Oregon, you're going to find a giant house for still under $220,000.

ASMAN: Now, Barbara, I have got to go off topic for a second. Donald Trump wants to fire you.

CORCORAN: Oh.

ASMAN: He has a problem with you. He calls you insane, because he says you doesn't owe you any money. There's what he said: "Barbara Corcoran is owed money. And she will get it when I get it. This is all a cheap publicity stunt."

What is all this about?

CORCORAN: I don't think I'm that desperate for publicity.

And Donald, of course, likes to take money, as many of us do, and doesn't like to pay it. Of course, he owes $2 million, or $1.7 million, to be exact. It was promised. We saved his life 11 years ago. We saved him from bankruptcy.

ASMAN: He has been in bankruptcy before.

CORCORAN: Well, only because of the deal we made, he didn't get into bankruptcy.

So, we sent him seven wealthy Chinese people, who saved the man's butt. And he said, please, wait for the commission. Just wait for the commission.

We said, OK. We know you can't afford it.

And now that it's due, that he has sold a big chunk of his equity, he can't remember quite who he owes the money to.

ASMAN: Oh, man.

CORCORAN: Not a very nice thing to do.

ASMAN: All right. Well, we will see how this plays out.

Barbara Corcoran, great to see you.

CORCORAN: My pleasure.

ASMAN: Thanks very much.

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