From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 116
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Mon, 31 Aug 1992 17:48:49 GMT

Real Estate News Summary, Part 116, August 1992

905. Santa Clara County unemployment shot up from 6.6% in May to
     7.4% in June--its highest rate in 9 years.  While Southern California has
     the worst problems in the state, Silicon Valley is the weakest urban
     county in Northern California due to layoffs in electronics and defense
     companies and restructuring and hiring freezes at many high-tech
     companies.  [San Jose Mercury News]

906. A sign of slow real estate times, the California Housing Finance Agency
     has had to start advertising its home mortgage purchase program for first-
     time buyers.  Without advertising the program previously couldn't keep up
     with demand.  The program qualifies buyers with just 5% of the purchase
     price, and below-market interest rates.  [San Jose Mercury News]

907. Kennedy-Wilson will auction 20 new showcase executive homes in San Jose
     California.  Previous asking prices from $365,950 to $439,950.  Minimum
     selling prices now from $235,000.  [San Francisco Examiner]

908. We are in the biggest restructuring of real estate since the Depression,
     and we aren't finished with the fallout.  1992 home starts are expected to
     fall to 33% of their levels in the late 1980s.  Existing home sales have
     dropped more than 20% from 3 years.  Entry level prices are flat, and
     move-up homes have lost as much as 10 to 15%.  Blamed are declining
     personal income, falling average hourly wages, and a personal savings rate
     that fell from a "low" 8% in 1981 to 4% today.  Real estate people suggest
     the market won't improve for years. [San Francisco Examiner]

909. The Resolution Trust Corp. auctioned 13 Bay Area residential properties at
     a July 26 sale, at prices from $69,000 to $340,000.  The RTC will hold a
     second Northern California auction Sept. 12.  [San Francisco Examiner]

910. The RTC has adopted strict new regulations prohibiting the sale of real
     estate to buyers who previously defaulted on loans or caused losses to
     failed savings institutions.  Brokers and investors warn that the rules
     also will sharply limit who can buy distressed properties, adding to the
     time it takes to liquidate the RTC portfolio.  Ken Townsend, head of
     Kenneth Leventhal & Co., said there were already too few buyers for
     distressed properties.  [Dallas Morning News]

911. The government said that sales of new homes rose 7.9% in June for the
     first rise in 5 months.  Analysts predicted falling mortgage rates and a
     possible tax credit would help build momentum.  [Associated Press]

912. The slowdown in California home sales is affecting million-dollar houses.
     During Q2 564 homes sold for more than $1 million in the state, down 3%
     from Q2 '91 and 32% below the same period in 1989.  [Associated Press]

913. Despite low mortgage rates, home sales in the San Jose area fell in July
     to their lowest monthly level of the year.  Sales were up slightly from a
     year ago but down 8% from June.  The median price fell from $225,000 to
     $220,000.  The inventory of unsold homes increased gradually since 12-92.
     "Sellers think buyers will negotiate (the price).  They don't realize that
     buyers are not as apt to make any offers until they find a good deal,"
     said the San Jose Real Estate Board president.  [San Jose Mercury News]