Real money on twitter. Housings spectacular comeback may be cooling down thanks in part to rising mortgage rates. In september home values stayed black compared to august according to new numbers that were crunched by the online real estate barr database zillow. Because of the recent washington Government Shutdown we dont have the latest economic figures that folks like me use. Starting next week those reports will start trickling in, but there are some private sector surveys we can turn to like the ones from zillow to get an idea of how things are going. In red hot real estate markets, california, they saw home values decline by more than a percent between august and september. San francisco, chicago, new york, miami, all of those places saw home values stay more or less the same. The only markets to see values go up in any significant way were las vegas, orlando, and sacramento. And those are some of the hardesthit areas when the housing bubble burst. We dont want another housing bubble, which is why some people say the cooling down may be a good thing. Remember that bubble was fueled in part by lenders giving home loans to people who couldnt afford them. They sold them off to investors and then used the profits to issue more home loans. Thats what cause the collapse. On friday the Jp Morgan Chase tentatively agreed to pay 4 billion to settle claims by sally may and freddie mac. They suffered large losses when the bubble burst. The losses were so big that the government stepped in and took over fanny and freddy back in 2008. Well stay on top of those stories. But the fact that the market may be cooling down now may be welcomed news. Not for some. Hoping to sell their home for 1. 5 million, but they fear they wont get that amount in todays market so they lowered their price expect station by 100,000 to attract a buyer. Theyre joining us from mound, minnesota. Thank you for being with us. Thank you. Thank you. You have a lovely house. I can see the lake behind it. I think its an important lesson because we talk about the average price of a house in america. Yours is many times the value of the average house, but you felt this increasing market you would be able to sell it. What happened . Well, i think the Housing Market in minneapolis has changed. If i go back historically the homes that we have been involved with, weve been buying houses since the late 70s. In the 70s, 80s, and 90s you could count on the market to soar. And that was always good news. There was Financial Success where we could roll the equity into another one and do even better. Now thats gone for the foreseeable future. Tell bus the market for those who dont know the area. Whats the market been like . Well, were in a special market because were on lake minnetonka. Youre going to have a little bit different affect being on the lake. The prices are higher, you have a higher tax base compared to say a house thats in a suburb west of minneapolis. Its entirely different and its a lifestyle choice to come out here. Not only do you have to have the buyer that wants the lifestyle that wants to be on the lake, that wants all of the lifestyle that goes with that, but then there is also the higher price point in general, and then youre going to have a higher tax base as well. That competes with some of the other houses that are on the market and what people can afford. You talked about how you had this experience in the past, you bought a house and sold it for more later. Youve been in this house for ten years. Its not like you have a lot of comps around you where there will be 10 or 15 selling around you and you can set the price. How did you come to the price and how did you decide to expect less . Thats the hard point. The financial mechanics are simple. What do i have in it. What is the reasonable return in investment, what have i had in the past, plus gut feel and coaching on the Real Estate Agent landed on the 1. 5, but were going to back away from the market and let it come back. We havent seen the bottom and i dont trust the comps. I dont think the Real Estate Agents are necessarily our advocates. They need to list houses. They cant buy groceries with listings. They got to sell houses. I dont trust the market or the brokers representing the agents involved, and i dont think anybody knows where the bottom is. When i pick up the newspapers and see a 16day Government Shutdown, that makes me nervous. I need somebody in washington who is knowing what theyre doing first. Thats an interesting point. Ive heard it said that this Government Shutdown ends up affecting people like you, and you dont have daily interaction with the federal government but its got people thinking this doesnt feel great. Yes, no, it doesnt. The other reason why were backing away from doing anything right now is because i think we reflect how a lot of people feel in the market. Were nervous. We dont know what the econ my is doing. The government on a daily basis, who knows what is going on there, and then you hear all the other things about the healthcare crisis and the premiums and everything going up. We just dont feel like its a good time to be making decisions about trying to sell a house that we possibly cant get our money out of. And we dont have to. We dont have to sell the house. We can afford to wait it out. Its a lifestyle decision for anyone who would buy a home on lake minnetonka. The fruit is a little sparse on that tree, but its a good thing you dont have to get into it. If you can hang onto it for a whilit for alittle while, when t neck of the woods ill come knocking on the door. Well take a broaderber perspective of what is going on in the Housing Market, how its affecting buyers, sellers and builders. Vice president of national somebody firm surveying boulevarders. I have to remind my viewers, Home Building was the piece of the economy that came apart in 2008 sending more than a Million People off the ray poll. So what builders are thinking is very important to the economy. What are they thinking . Well, i would say at the moment theyre watching this pause in the market, and i think theyre nervous, definitely nervous. I surveyed builders about sales and traffic, pricing, and for me one of the big indicators to look at is pricing. When the builders are nervous particularly as they look at Fourth Quarter and think about the sales rates and the revenues that they promised wall street particularly for the public i think theyre saying we cant wait to see what happens with consumer confidence, and they started to use incentives to make sure that they get peoples attention and they can make those sales. Talk to me about those incentives. Theyre taking people who are thinking the way the family i just spoke to, even though theyre sellers, not buyers, but there is a sense that im affected by this bad mood around me. What kind of incentives are you hearing about . In many cases closing coasts have continued to be provided by the builders. There are some markets where the cost to close on a new or resale home is very pricey. That has not gone away even with the strength of the Housing Market this year. What is newer is september. Ive seen a growing use of incentives along the lines of maybe either free or discounted options and upgrades are very typical, and very popular. And just in the last week as ive been doing my polling im starting to hear of actual price cuts. Builders dont want to cut price. It affects their appraisals and backlog of homes they already sold. They dont want to cut price. Theyre going to look at Something Like offering free appliances or a pool of money that consumers can use to upgrade the house or personalipersonalizeit for thei. Interest rates have gone up since may. Its about 4. 5 for a 30year fixed mortgage if you have good credit. Housing affordability despite the increase in rates. Despite the increase in home prices is historically relatively low. Thats right. We as a company, we have our own affordability index in which we look at each metro against its own history. It doesnt really make sense to compare affordability in San Francisco, one of the most expensexpensive places in the cy to places that are more affordable like indianapolis. Most metros in the country have reached their best affordability going back to 1981. They probably reached that forward ability in Fourth Quarter give or take. We now have at least a dozen metros in the country where rising rates end big price increase this is year have pushed forward ability back to normal. We cant claim that house something a great value today. The rates do remain unraged. The longterm northern is 6 to 6. 5 , and the builders are working hard to remind consumers that this is still a good time to buy with the low rates. Not everyone market has returned to its normal affordability. You are full of great information for us. Thank you for joining us. If you dont trust humans to manage your money or think they charge too much, ill tell but a growing rank of people who are turn to go online advisers for financial help. Probably being a little too much for the services that i really didnt need. I looked at a bunch of Online Options, and thats where i decided to make a switch. Real money continues. While you were asleep, news was happening. Here are the stories were following. Find out what happened and what to expect. International outrage. A day of political posturing. Every morning from 6 to 10am Al Jazeera America brings you more us and global news than any other American News channel. Tell us exactly what is behind this story. From more sources around the world. The situation has intensified here at the boarder. Start every morning, every day, 6am to 10 eastern with Al Jazeera America. On inside story, we bring together unexpected voices closest to the story, invite hardhitting debate and desenting views and always explore issues relevant to you. What happens when social media uncovers unheard, fascinating news stories . They share it on the stream. Social media isnt an afterthought, it drives discussion across america. Al jazeera americas social media community, on tv and online. This is your outlet for those conversations. Post, upload and interact. Every night share undiscovered stories. There is a good chance youre one of million of americans with no professional help managing your money or planning for retirement. 58 of us have no plan in place. One big reason is we dont trust brokers or Financial Planners but there are 130 webbased one group of online advisers has attracted more than a million customers offering low fees and convenience. This San Francisco resident admits he doesnt know the first thing about investing. I know you should not keep your money in a savings account. I do know that. He paid a Financial Adviser at his bank to manage his life savings. But then recently i realized i was paying a little too much for the services that i really didnt need. I looked at Online Options. Thats where i decided to make a switch. He transferred his money to one of the dozen Online Options that offer Financial Advice for lower or no fees. The average person does not have access to a Financial Adviser. Entrepreneurs see a huge market in those with some savings who dont meet the million to half million minimum that main require. They dont know what to do with their money. They manage it themselves. They help to achieve their goals at low costs. That low cost, the fraction of the annual fees charged by traditional Financial Advisers driven by technology. Heres how it works. Once you sign up and answer some questions. You link your existing savings accounts and in minutes the latest in algorithm based outcomes applied to the plans. Our customers are those in the early 30s to late 40s. Someone who is accumulating wealth so they can eventually retire. Reporter like other start ups in the field they bring many together under one roof so an adviser will respond to any questions that you might have. As a register Investment Adviser with the fcc the site can make trades or rebalance accounts on your behalf. Younger generations like the speed that those website s provide. Its something that you can check in on at a glance. Reporter simon roy, president of gem step, another Online Service, said public distress in the wake of the 2008 crisis was complete industry has done itself no favors. There have been scandals, concern about conflict of interests from brokers. I think investors have become aware of this, and there is a hunger for an alternative and a little more control. Though each side uses slightly Different Software they all follow the standard port tollio weighted towards diversified assets and low fee index fun. Mike shah, the largest of these personal advising start ups says it has more than 100 billion assets linked to the site said rooting out hidden fees in 401k accounts can bring huge rewards. For the average user we can save 5,000 for them. But eliott ceo of high tower, a firm of registered Investment Advisers says the complexities of planning a person s financial future often demand a personal touch. Its very difficult for Technology Today to replicate a thoughtful conversation about when does a person want to retire and what does it mean to retire . Thats really more art, thats the skill that isthat resides in a small group of Financial Advisers. For an increasing number of consumers, Online Services like future adviser make more financial sense. The online world provides exactly what i need at a fraction of the cost. There are services for people like me need that didnt exist before, and now everyone benefits. Well, one Important Note experts agree that online sites may not be the right fit for everyone especially if youre a High Net Worth individual, and remember price is just one factor in evaluating advisers whether human or online. Today on twitter and facebook how much would you trust an Online Service versus a human to manage your money . Jesse say i use betterment. They take emotion out of play and keep fees low. And van vot wrote i think it would depend on the amount of money. It gets for complex in proportion to the amount of ha have. How old are you . Nine. How old were you when you first started working out here . Seven. Fault lines how children are hired by Us Agriculture to help put food on americas tables. In any other industry kids need to be 16 years old to be able to work. You dont see any of that in agriculture. They dont ask, is she 12 . They just want their job done. How many of you get up before 5 oclock in the morning . While you were asleep, news was happening. Here are the stories were following. Find out what happened and what to expect. International outrage. A day of political posturing. Every morning from 6 to 10am Al Jazeera America brings you more us and global news than any other American News channel. Tell us exactly what is behind this story. From more sources around the world. The situation has intensified here at the boarder. Start every morning, every day, 6am to 10 eastern with Al Jazeera America. Joining price line in the thousand dollar club all eye. All eyes on apple and the world is aflutter over the twitter ipo. Netflix up almost 400 of the year. Facebook up 185 . Price line up 89 . Apple is down 20 for the year but up about 30 in the last six months. The s p 500 is about 20 for the year, now 20 gain on the s p 500 is nothing to thumb your nose at. It closed at a new alltime high on friday. But when you compare its gains to these tech stocks the poor ol s p gets overshadowed. Is now the time to get into tech stocks . Here is matt mccall president of pan financial group. Matt, good to see. You great to see. You what is your sense of this . Its remarkable. In a year that has already had strong markets across the board were seeing things in the tech sector, numbers like this reminiscent of a tech bubble. Most investors say to themselves, stay clear away from this, i missed the move in these stocks. I look at it in a different way. Look at valuations if you base the valuations on the tech stock in the overall market theyre still extremely attractive. Those companies that you mentioned, some of them maybe not are not the big names that they were a couple of years ago, theyre still growing fast in the market. Explain to me netflix and price line, what are they doing . The way we all watch television is changing dramatically. You would know this better than i do, but i rarely turn on the television. I watch things on netflix and hulu. They have a niche product that there is growth there. Growth versus growth in the old school, time warner. Youre going to see growth in netflix. How does my viewer get a sense of when there are opportunities here versus when the train runs away . Thats a great question. Timing the market is a great question for the average investors. Do i i buy netflix up 400 this year . Theyre kicking themselves for not having bought it last year put but see the fundamentals of where the future is. You dont care where the stock was today, yesterday or ten years ago. Its going to be facebook, the earnings come out later this month. It will be great. Its a good company you want to look at apple, apple tv, it comes to fruition, that will be a gang buster and valuation. Are they going to stop buying the iphone or the ipad . Is there a product to beat that . There isnt, and its a company that will go higher and that. What should you think about if youre thinking about investing in twitter. Just the same thing i said when facebook came out, stay away from twitter. Its easy when everyone in masses is doing one thing. You typically do the opposite thing as tough as that is. I think twitter has longevity. Im just not buying it when it comes out. And you could have bought it in the high teens and now youre looking at over 50 a share. Twitter is an investment potential wait a few months. Lets revisit this in three months. People have been asking me this today. Google, 1,000, good or bad . I think its fantastic. Its great for the market. What this does is it gets people excited about the market again. People have been sitting on the sidelines and missing out on the bess part of our lifetime because they dont like what government is doing, and google trading at 1,000. Youre still alive, keep on giving me what i need. Matt, thank you. Thank you. How much would you trust an Online Service versus a human adviser to manage your money . Tweet me at ali velshi, and you can leave a comment on our facebook page. And if you want to see more of tonights stories log on to website at. Ever were still recovering from the housing crash as are the millions of people who defaulted on loans they couldnt afford. The wall street journey said Jp Morgan Chase along with 17 other banks have been under civil and criminal sessions for packaging bad mortgages into securities and selling them to investors. Good . How much should they pay for their misdeeds . The journal said jp morgan has received a tentative 4 billion settlement part of a proposed larger 11 billion settlement theyre working on with the justice department. Jp morgan set aside an additional 9 billion for legal fees. A lot of money, i dont know if it makes things better. The final retribution is when the Housing Market feels the last ripple from that bubble burst. Thats our show for today. Next time well show you wea wearable technology. Im ali velshi, thank you for joining pu joining us. Hello, and welcome to the news hour. Im in doha with the top stories. Families celebrate in lebanon as nine hostages are freed by Syrian Rebels after more than a year. All the people, the citizens have the right to say what they feel. 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