Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, Mar 13 1992 Date: Fri, 13 Mar 92 05:47:47 EST Message-ID: 03-13 0000 DECISIONLINE: Real Estate USA TODAY Update March 13-15, 1992 Source: USA TODAY:Gannett National Information Network YEAR COULD BE GREAT, OR NOT: This year is shaping up to be either the best of times or the worst of times for homebuilders in the USA. Large builders with plenty of capital say they have great expectations of a banner year for home sales and for starts. But for smaller developers, hard times appear to lie ahead, even with a recent upswing in demand. (For more, see special Market package below.) CARIBBEAN HOTEL MARKET HOT: There's a freeze on hotel construction in most markets thanks to the recession and a glut of rooms. But builders are still blazing away in the Caribbean. Industry newsletter Real Estate Perspectives reports that developers and investors like prospects for the tourist trade in such spots as the Dominican Republic, Costa Rica and Belize. FINANCE AGENCIES BOOST MARKET: "There's a lot of stale product associated with the Caribbean hotel industry," says Michael Stein of Arthur Andersen. "Except for one or two destinations" the hotel construction market's been flat. Making it hot again are international financing agencies such as the World Bank. They've made tourism a key element in plans to boost economic growth in the Caribbean nations. SOUTHPORT PARCEL APPROVED: The city of West Sacramento, Calif., has approved the master plan for Southport, a 7,000-acre multiple ownership parcel comprising more than half the city's area. San Francisco-based PBR, which the City Council selected to design the master plan, said the key to the plan winning approval was a consensus reached among landowners, developers and the community. BUYERS' CLINIC PLANNED: There will be a home buyers' clinic held on April 4 from 9 a.m. to 4 p.m. in Santa Clara. The workshop is sponsored by the University of California Extension and will be taught by Alan A. "Scotty" Herd, CRE, Realtor, A. Scott Herd Associates, Beverly Hills. Herd is a member of the American Society of Real Estate Counselors. For information, call 408-427-6646. HOME ACCESSIBILITY ADDRESSED: "Easy Access Housing for Easier Living" is a free brochure that answers questions on home accessibility for the disabled. Send a self-addressed, stamped envelope to: National Easter Seal Society, 70 E. Lake St., Chicago, Ill. 60601. FIXED-RATE MORTGAGES STEADY: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.85% Thursday, unchanged from Wednesday and up from 8.83% the week before. They were at 9.49% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.99%, unchanged from Wednesday and up from 5.93% the week before. A year ago they were at 7.51%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.55% Thursday, unchanged from Wednesday and up from 4.41% the week before. A year ago they were at 6.48%. For the 11th District ARM index, rates were at 6.002, unchanged from Wednesday and unchanged also from the week before. A year ago they were at 7.858%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Thursday, listing at 8.04%. That's up 0.09 from rates of 7.95% Wednesday and up 0.13 from 7.91% the week before. A year ago T-bonds were at 8.20%. SPECIAL PACKAGE ON MARKET: HOME SALES RISE: Sales of new, single-family homes rose 13% in January from the month earlier, seasonally adjusted. Sales leaped 39% in the Midwest, in part thanks to mild weather, and 13% in the South. "The foundation is being laid for a solid recovery," says David Seiders of the National Association of Home Builders. But many smaller firms are having trouble getting loans for land and homes. `THE MARKET IS TURNING': Already, the combination of reviving demand and a continuing credit crunch is separating winners from losers. Hovnanian Enterprises, a major New Jersey builder, saw home sales jump almost 750% in December and January, compared with the same period in 1991. "The market is turning," says the firm's vice president, Larry Sorsby. NO SALES LIKELY THIS YEAR: Things are bleak still for Dan Pincus of HDP Industries, a New Jersey homebuilder. During the boom years, he was selling 50 to 60 houses a year. Last year he sold one; this year, he doesn't expect to sell any. He says local lenders are unwilling to lend because of pressure from bank regulators to avoid speculative risks. "If I can't keep land in inventory, I can't build houses," he says. (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM