From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 134
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Wed, 6 Jan 1993 20:54:11 GMT

Real Estate News Summary, Part 134, November 1992

1057.New single-family home sales fell 1% in September after a revised 1.6%
     increase in August.  The August figure was previously estimated as a 6.1%
     decline.  Low interest rates have not lit a fire under home construction
     or sales, which have only moderately improved from last year, when home
     construction was the weakest in more than 4 decades. [Wall Street Journal]

1058.The median price of housing in the San Jose area edged down 1% in
     September to $218,988.  It was the lowest level in 11 months and was down
     8% from the record $237,000 high in August 1989.  The median price of
     single-family houses fell 2% to $235,000, its lowest point since the price
     peaked at $269,950 in August 1989.  The median price for condos was
     $162,500, unchanged from August 1989, but up 33% from January 1989.
     [San Jose Mercury News]

1059.A 3-year recession and a sluggish home market--particularly in homes
     priced over $320,000--has led developers to offer buyers incentives they
     haven't seen in years.  All developers are under pressure from nervous
     lenders to get sales moving.  Some move-up and upper-end developers are
     offering straight reductions in price as high as $58,000.  Other companies
     are auctioning properties with minimum bids of 50% of the list price.
     [San Jose Mercury News]

1060.California will be mired in a slump well into the '90s, stung by ongoing
     declines in the defense industry, a real estate glut, over-regulation and
     an exodus of businesses.  The state has more structural negatives than
     Texas or Massachusetts had during the 1980s, so it could suffer worse than
     either of them.  Silicon Valley also is worrisome, because a 14-month
     string of technology layoffs shows no sign of ending, and the brunt of
     defense cutbacks has not yet been felt. [San Jose Mercury News]

1061.Housing in California isn't likely to become a quick money-making
     investment again any time soon.  The California Association of Realtors
     expects the statewide median to decline 1% next year, on top of a 2.1%
     decline projected for this year. [McClatchy News Service]

1062.If your house has been on the market for more than 6 weeks without an
     offer, you must reduce the asking price if you want to sell it.  Nearly
     all property sells within 10% of the asking price.  Since your house
     hasn't sold, your asking price is at least 10% above your house's fair
     market value.  Your house's new asking price should be just under the most
     recent sale.  Of course, the market might improve next year.  Then again,
     it might get worse. [San Francisco Examiner]

1063.First-time homebuyers in California were responsible for 49% of all
     purchases.  That compares with 45% last year and is the highest since
     1981, when the statistic was first measured. [San Francisco Chronicle]

1064.Public new home auction.  42 Exquisite golf villas in the most prestigious
     country club.  Starting bids $199,000.  Original asking price up to
     $649,000. [Pacific Citizen]

1065.Falling mortgage rates and rising incomes pushed home affordability to its
     highest level since 1974.  A family earning the median income of $36,612
     had 127% of the income needed to qualify for a median-priced home costing
     $103,500.   But first-time buyers, earning a median income of $23,555 had
     only 83.4% of the income needed to qualify for a median-priced starter
     home at $88,000. [Associated Press]