From: hamachi@adobe.com (Gordon Hamachi)
Newsgroups: misc.invest.real-estate
Subject: Real Estate News Summary, Part 128
Date: 16 Nov 92 22:00:48 GMT
Article-I.D.: adobe.1992Nov16.220048.17388
Distribution: usa
Organization: Adobe Systems Incorporated

Real Estate News Summary, Part 128, October, 1992

1006.Led by a steep decline in the West, new home sales dropped 6.1% nationwide
     in August despite the lowest mortgage rates in 19 years.  Sales increased
     7.5% in the Northeast and 4.3% in the Midwest but plunged 19.5% in the
     West.  Sales fell 5.2% in the South. [Los Angeles Times]

1007.Falling mortgage rates and home prices have reduced homeownership costs to
     their lowest in more than 15 years.  But income erosion has put affordable
     rental housing out of the reach of more and more households.  Despite high
     rental vacancy rates and weak economic growth, rents stand near a 20-year
     peak.  Rental costs as a percentage of renter income rose above 30% for
     only the third time in 25 years.in the Northeast and 4.3% in the Midwest
     but plunged 19.5% in the West.  [Wall Street Journal]

1008.The high end of California's housing market is really suffering. And where
     there is some activity at the high end, it's at a price level the seller
     never anticipated.  In Los Angeles' Brentwood Park, lots are going for $85
     a square foot; just 2 years ago the price was nearly 30% more.  At Ventura
     County's Sherwood Country Club development there have been only 18 sales
     in well over a year in what is supposed to be a community of 650 homes.
     [Wall Street Journal]

1009.San Mateo and Santa Clara counties saw declines in the numbers of single
     family homes closing escrow in August.  Realtors blamed summer vacation
     for the decline. [Times Tribune]

1010.Bay Area economists say the California Association of Realtors' 1993 fore-
     cast is overly optimistic and extremely naive.  The forecast says existing
     home sales will increase 1.9% if the GDP rises 2.3%, while interest rates
     will drop.  But the GDP not influence California housing sales because the
     state's economy is still going down the tubes and there is no relief in
     sight.  The state has not seen the end of job losses, and there is nothing
     to attract new businesses; in fact, more and more people are leaving
     California.  Some see no growth in real estate until 1995. [Times Tribune]

1011.Once the engine of California real estate, move-up housing has plunged in
     the past 5 years.  The erosion of the middle class, flat home values,
     declining incomes and white-collar layoffs will keep move-up housing
     sluggish even after the overall market improves.  Low inflation will make
     moving-up even more risky. In 1988 there were 350,000 move-up buyers; this
     year there will be less than 200,000.  The supply is growing as seniors
     sell and move out of state.  Seniors and cash-strapped households are also
     trading down. [Times Tribune]

1012.The Bush administration overturned a regulatory requirement that reverse-
     mortgage lenders assume that the homes they finance would never increase
     in market value.  The American Association of Retired Persons lobbied for
     the change.  Ordinary lenders are permitted to assume for financial
     purposes that the value of their mortgaged homes will keep up with
     inflation. [San Jose Mercury News]

1013.Kennedy-Wilson will auction 126 homes, apartment buildings and land
     parcels throughout California.  Golden State Fall Quarterly.  Seven homes
     sold with no minimum selling price.  No unpublished reserves! You bid with
     the knowledge that your high bid will be accepted! [San Jose Mercury News]

1014.Pending home sales in the San Jose area fell 3% in September, marking a
     typical seasonal pattern.  But the median price rose month over month.  A
     rise in sales of detached homes suggests that more "trade-up" buyers might
     be returning to the market. [San Jose Mercury News]
Newsgroups: misc.invest.real-estate