From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 135
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Fri, 8 Jan 1993 22:56:47 GMT

Real Estate News Summary, Part 135, November 1992

1066.Home prices fell in much of California and the Northeast during Q3 despite
     the lowest mortgage rates in nearly 2 decades.  Nationally, the median-
     price of a previously-owned single-family home edged up 1.6% from a year
     earlier.  Prices fell in 34 areas that included some of the largest
     cities.  They were down 8.9% in Philadelphia and 5.5% in Los Angeles.
     Nationally, sales of previously-owned homes fell 5% in Q3 compared with a
     year earlier.  Sales plunged 14.8% in the West. [Associated Press]

1067.Existing home sales will grow a moderate 3% to 6% next year, and fixed 30-
     year mortgages will fall below 8%, according to the National Association
     of Realtors.  This year's expected 6% sales increase over 1991 is mediocre
     compared with the 36% surge in the first year of recovery after the
     1981-82 recession.  Housing will remain hindered by high unemployment.
     Household debt is still too high to boost spending.  Long term demand is
     slowing because the Baby Boomers are played out.  California should stay
     in the tank for much of next year. [Wall Street Journal]

1068.In California, lower rates and prices allowed 32% of households to earn
     the minimum income needed to qualify to buy the median-priced single-
     family house, which sold for $196,500.  A year ago only 26% qualified.  In
     the Bay Area, 25% of households earned the $69,836 needed to afford the
     median-priced single-family house at $254,740; affordability was up from
     18% a year ago.  The local index reached its all-time low in June 1989,
     when only 8% of Bay Area households earned the $91,920 it took to buy the
     median-priced home at $269,660. [San Jose Mercury News]

1069.New home construction fell 1.1% in October.  Still, starts were 13.3%
     higher than in October 1991.  And the first 10 months of the year show a
     19.1% rise over a year earlier.  Interest rates are at a 20-year low and
     home prices have fallen or remain weak in many areas, making homes more
     affordable.  But high unemployment and fear of losing jobs are keeping the
     housing recovery weaker than it otherwise might be.
     [Investor's Business Daily]

1070.Clinton's election has inspired consumer confidence.  The University of
     Michigan's Consumer Sentiment Index rose from 73.3 to 83.6 from October
     through mid-November, reversing declines for the past 18 months.  Just 27%
     of households reported their financial situation had improved in the past
     year, the smallest proportion in the past 10 years.  20% of home owners
     reported that the dollar value of their home had declined.  Despite their
     worries, consumers remain modestly positive based more on expectations of
     falling inflation than rising incomes. [Associated Press]

1071.Housing starts dropped 1.1% in October, pulled down by persistent weakness
     in multifamily dwellings.  Analysts said it indicates that it will take
     more than low interest rates to boost the housing market.  Starts of
     single-family homes have been showing signs of consistent if slow growth
     over the past few months.  They rose 0.7% in October to their highest
     level since February. [Wall Street Journal]

1072.Kennedy Wilson will auction 48 new classic condominiums in San Jose CA.
     Minimum selling prices now from $ Zero.  Previous asking prices $140,000
     to $207,950. [San Jose Mercury News]