From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 130
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Mon, 21 Dec 1992 22:59:49 GMT

Real Estate News Summary, Part 130, September-October 1992

1025.California's economy, now in the 3rd year of its worst recession since
     WWII, won't recover till the final months of 1993 at the earliest.
     California's outlook is comparable to the deep downturn in New York and
     Massachusetts, and, gloomier still, conditions could spiral into economic
     depression.  Housing has failed to recover.  There is evidence that house
     prices are falling once again in California.  Widespread declines in house
     prices have eroded the wealth of home-owners in the state, making them
     feel poorer. [Wall Street Journal]

1026.The most pessimistic and accurate major forecaster of California's economy
     now says the state's economy will reman weak through '93 with unemployment
     averaging 11%.  Rebounds in neither California housing, local consumer
     spending nor the U.S. economy are imminent. Meanwhile, new problems in the
     state include more defense layoffs, government retrenchments and possibly
     a renewed decline in home prices.  Most homeowners feel poorer because of
     the housing recession and are likely to spend less money, especially those
     who borrowed against home equity. [San Francisco Chronicle]

1027.Affluent but frugal new-house buyers are selecting the biggest houses at
     the lowest cost per square foot.  While the median size of new houses fell
     to 1,890 square feet in 1991 from a record 1,905 in 1990, the quantity and
     quality of amenities have dropped substantially.  Most buyers are opting
     to do without brick exteriors, cedar roofing, hardwood floors, marble
     foyers, Jacuzzis, and cherry kitchen cabinets. [Wall Street Journal]

1028.Federal bank regulators eased proposed real estate lending standards.
     Guidelines recommend that banks and thrifts lend no more than 65% of the
     appraised value of raw land, 75% on land development projects, 80% on
     nonresidential construction, and 85% on 1-4 unit residential construction.
     In 1982 Congress abolished Federal loan-to-value limits on real estate.
     Thousands of banks and thrifts failed in the 1980s because they made real
     estate loans that were too thinly collateralized.  [Wall Street Journal]

1029.Housing completions fell a sharp 7.3% in August.  Completions of single
     family homes fell 5.6%.  The number of apartment completions fell 15.4%.
     Completions fell 37.7% in the Northeast and 6.4% in the South.  They rose
     1.5% in the Midwest and 0.7% in the West. [Reuters]

1030.Some home builders reported unexpectedly strong September sales and many
     are now markedly more optimistic about solid growth in sales next year.
     Last year was the worst performance since World War II.  Boosted by low
     mortgage rates, many builders and realtors reported surprising sales for a
     normally slow September.  Large builders are taking market share from
     smaller, less-capitalized rivals.  No one is predicting an old-fashioned
     boom. [Wall Street Journal]

1031.Kennedy-Wilson will auction 58 luxury condos at Hillcrest Vista in
     Anitoch, CA.  Minimum selling prices now from $59,000.  Previous asking
     prices from $93,000 to $165,000.  Ten homes to be sold absolutely
     regardless of price! [San Francisco Chronicle]

1032.Citation Homes Central will hold a close-out auction Nov. 8 of 41 new
     homes in 5 Bay Area communities.  Bidding will start at 50% to 60% of the
     home's last asking price.  There are no reserve bids, so any winning bid
     at or above the minimum will win.  [San Jose Mercury News]
Newsgroups: misc.invest.real-estate