From: hamachi@adobe.com (Gordon Hamachi)
Subject: Real Estate News Summary, Part 120
Organization: Adobe Systems Incorporated
Distribution: usa
Date: Thu, 10 Sep 1992 19:31:29 GMT

Real Estate News Summary, Part 120, August 1992

938. The improving outlook for housing is consistent with a moderately upbeat
     view of the economy.  The plunge in mortgage rates will do much to revive
     this important sector.  Housing starts fell 3.2% in June. [Business Week]

939. One reason consumers haven't responded to the unprecedented interest rate
     drop is that aftertax inflation-adjusted rates are at historically high
     levels.  For those in the top marginal tax bracket, real mortgage rates
     are now 2.7% compared with 2.8% in the 1986-90 period and an average of
     0.7% from 1966 through 1990.  For those in the median tax bracket, the
     real mortgage rate is about 3.7%, higher than the 1966-90 average of 1.9%
     but below the average 4.6% rate of the 1980s.  [Business Week]

940. The housing rebound is showing new signs of life, thanks to lower mortgage
     rates.  Single-family home sales jumped 7.9% in June, and May's data were
     revised sharply higher.  Loan applications for home purchase hit an all-
     time high in the week ending July 24, suggesting big gains in the home
     sales data for August and September.  Low mortgage rates will keep the
     housing rebound--and the economy--moving ahead.  [Business Week]

941. Kennedy-Wilson will auction 7 new classic homes and 19 large homesites at
     the Rosewalk Estates.  Original asking prices from $179,900 to $209,900.
     Minimum selling prices now from $100,000.  Sealed bid sale for homesites.
     Originally priced from $45,000.  Minimum selling prices now from $27,500.
     [San Francisco Chronicle]

942. Kennedy-Wilson will auction 28 new single family homes at Brentwood Homes.
     Previous asking prices from $135,750 to $165,750.  Minimum selling prices
     now from $70,000. [San Francisco Chronicle]

943. Housing starts fell for the second month in a row, as wet weather and an
     uncertain economy restrained builders.  Starts fell 2.8% in July after
     falling 3.8% in June.  Based on a dramatic reduction in mortgage rates and
     a 7.9% jump in June new home sales, economists had expected a 2% to 3%
     increase in July.  The index of applications for mortgages fell to 263,
     from 298 and 328 in the previous 2 weeks.  Permits rose 3.7% in July after
     June's 2.1% decline.  [Investor's Business Daily]

944. Housing starts fell 2.8% in July following a 3.8% drop in June.  Every
     region saw construction fall, except for a scant 0.4% increase in the
     South.  Economists had predicted a moderate improvement. Home construction
     has changed fundamentally since the baby boom provided a surge of young
     home buyers in the early 1970s.  Housing isn't likely to reach the same
     level again for 10 years, when children of the baby boomers buy homes of
     their own.  Additionally, home values are declining in some places, and
     people are scared to make the investment.  [Wall Street Journal]

945. Grubb & Ellis will auction 7 custom homes and 2 residential lots in
     Portola Valley, Hillsborough, and Redwood City.  Opening bids slashed up
     to 50%.  [Wall Street Journal]

946. Santa Clara County's median home price was $220K in July, down from $237K
     at the 1989 top of the market. Agents are bracing for further declines.
     Delinquencies and foreclosures are rising.  Sellers who bought at the top
     with only 10% down will be lucky to have any equity. Although this is true
     nationwide, it is more common in areas where a lot of new construction
     occurred in the late '80s, such as Silicon Valley, Sacramento and southern
     Orange County.  The Santa Clara County assessor has lowered the tax bill
     on 12,000 properties countywide.  Meanwhile, sellers often price their
     homes not according to value, but by how much they owe, driving them
     further in distress with mounting monthly debts.  [San Jose Mercury News]