From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 118
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Fri, 4 Sep 1992 19:05:56 GMT

Real Estate News Summary, Part 118, August 1992

922. The slowdown in California home sales is affecting million-dollar houses
     as well as the middle of the market.  During Q2 '92, 564 homes sold for
     more than $1 million in the state, down 13% from 648 for last year, and
     32% below the same period in 1989.  [Times Tribune]

923. While many companies consolidate, Mason-McDuffie Real Estate is opening
     new offices.  President David Cobo says that the inventory of homes on the
     market is still high.  Projections were for an increase of 4% over a weak
     1991.  But competitors are leaving the business.  One thing agents have to
     explain to sellers--very carefully--is that prices they put on houses may
     not be realistic.  He's seen a shift away from speculation; now the person
     looking for a home plans to live in it.[San Francisco Examiner]

924. Century 21 Real Estate says home prices in many vacation areas remain low,
     while the potential for appreciation will be better than normal over the
     next 3 years.  Vacation home appreciation this summer has already slowed
     to a moderate pace; however, agents say this doesn't mean prices are
     peaking.  "The baby boomers--the largest segment of the population--are
     approaching their home-buying years right now and the second home market
     in general will be very strong over the next 10 years," said the owner of
     one realty firm.  [San Francisco Examiner]

925. First-time home buyers are fueling brisk home-buying in Denver.  Other
     areas, notably the Midwest and Northwest, are experiencing the same sort
     of renaissance, according to the National Association of Realtors.  "It's
     not what I would call a feeding frenzy," said the co-owner of a realty
     firm.  "Since we've been through such tough times, buyers are very
     intelligent, savvy and thorough in their choice of properties, so they
     are not willing to overpay and not willing to take property in bad
     condition." [Associated Press]

926. The Resolution Trust Corporation California Sales Center will auction 50
     residential properties valued at $13.5 million, in Costa Mesa.  It will
     auction 12 commercial and 18 residential properties valued at $10.5
     million, in San Francisco.  [San Francisco Chronicle]

927. Housing affordability rose to 121.2 in Q2 from 111.4 a year ago.  An index
     of 100 means a family earning the median national income can afford a
     house at the median national price with a 20% down payment.  But the index
     for first-time buyers measured just 78.7, compared with 73.1 a year
     earlier.  Nearly half of renters cited down payment difficulties.
     Meanwhile, housing completions fell 3.2% in June after rising 12.8% in
     May.  [Reuters]

928. A major factor in the nation's difficulties is the fundamental collapse of
     real estate values.  "Collapse" is not too strong a word.  Even where real
     estate prices have merely turned flat, this is a wrenching divergence from
     more than 20 years of relentless appreciation.  The average rate on home
     mortgages has not been seen since Nixon was president, but the flood of
     buyers this would have brought out in previous years is no longer there.
     [Newsday]

929. Top economists say both the national and California economies won't stage
     meaningful recoveries before the mid-90s.  The highest jobless rate in
     nearly a decade will remain high for at least 2 more years.  California's
     jobless rate might rise to 10%.  And if their forecasts are wrong, it's
     more likely that they will turn out to be too optimistic.
     [San Jose Mercury News]