From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 108
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Thu, 23 Jul 1992 00:25:08 GMT

Real Estate News Summary, Part 108, June 1992

839. Consumer confidence bottomed out in Feb., rose 15.2% in April and 10% in
     May.  Yet May retail sales rose only 0.2% following a paltry 0.4% gain in
     April.  Blamed are a sluggish real estate market that limits spending on
     durables, high personal debt and linger unemployment.  But consumers'
     cautiousness may be a long-term condition.  Americans are older now: The
     median age is 34, up from 30 a decade ago, and should rise to 37 by the
     end of this decade.  This means more mortgage-indebted families with
     children to educate and elderly parents to care for. [Wall Street Journal]

840. An overwhelming 78% of Americans believe owning a home is a good
     investment, and most are willing to make some sacrifices to buy one.  By a
     4-to-1 ratio they would pass up a better job in a city where they could
     only afford to rent.  But 75% would not endanger their security by
     overextending themselves financially.  In the lowest income group 60% said
     owning a home was a major goal.  In the highest income group 31% agreed.
     [Washington Post]

841. The U.S. posted a healthy 11% gain in housing starts in May, suggesting
     that the economy continues to grow.  The May increase wasn't enough to
     fully reverse a 17% plunge reported for April.  Viewed over a longer
     period than just one month, housing starts have shown only a gradual
     improvement. [Wall Street Journal]

842. The strongest indicator that the economy was moving past a risk of relapse
     came from an 11% surge in housing starts in May.  Economists had worried
     that the housing sector had stalled after rising sharply earlier in the
     year.  In April, for instance, starts plummeted 17.3%.  But the May
     rebound lifted construction 25% above the level a year earlier.
     [San Francisco Chronicle]

843. The Bush administration and many in Congress want to tighten controls on
     Fannie Mae and Freddie Mac.  The reason:  The billions in mortgage
     securities the 2 companies have issued represent a potential liability to
     the U.S. taxpayer of more than $800 billion.  But the profits from the 2
     companies go to private investors.  The volume of mortgage-backed
     securities has grown explosively, from $100 billion a decade ago to $1
     trillion today. [Wall Street Journal]

844. The Supreme Court upheld California's Proposition 13,  which rolls back
     property-taxes to 1975 levels, limits increases, and reassesses property
     to market value when sold.  Newly purchased property is now taxed up to 17
     times higher than similar property with longtime owners.  The ruling was a
     blow to California's battered housing market, because long-time owners
     will continue to have an incentive not to move.  At the same time, home
     builders will continue to be subject to heavy fees by local governments
     seeking to compensate for restrained property taxes. [Wall Street Journal]

845. Nationwide Auction Company will auction 29 single family detached homes at
     Crystal Pointe in Vallejo, California.  Absolute auction.  No minimum bid.
     The first 10 homes will be sold individually to the highest bidder without
     reserve and regardless of price.  [San Francisco Examiner]

846. For the past couple of years, real estate has been a lousy investment. Now
     housing is inching back.  But despite a steady increase in sales volume,
     housing remains a buyer's market.  Prices continue to fall on both coasts.
     Salomon Brothers Inc. predicts the housing recovery will take at least 2
     years.  Nationally, price increases for existing homes are running just
     slightly ahead of inflation.  The big weakness is more expensive houses.
     Sales in the Northeast and California, hardest hit by the recession,
     likely will lag behind the rest of the country.  [Business Week]