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 Tue, Mar 17 1992 Date: Tue, 17 Mar 92 05:44:53 EST Message-ID: 03-17 0000 DECISIONLINE: Real Estate USA TODAY Update March 17, 1992 Source: USA TODAY:Gannett National Information Network HOUSING LESS SURE INVESTMENT: Housing values have "acted more like the fluctuating stock market than the `sure' investment they once were," according to Tom Pfeiffer of Runzheimer International. In a snapshot analysis of 12 cities, only Atlanta, Chicago and Seattle registered gains in housing values every year since 1987. A home bought a year ago was worth less than when purchased, Runzheimer says. (For more, see special Invest package below.) MORTGAGE LOAN RATES CLIMB: The 8 1:4 fixed-rate loans for mortgages may be fast disappearing. After two months of rising rates, many economists and mortgage lenders say they expect mortgage interest rates to level off at or just above 9% even. The Federal Home Loan Mortgage Corp.'s most recent national average, released Friday, was 8.88% but does not reflect the most recent rise in rates. FIRST-TIMERS RETURN: First-time buyers are once again being considered a factor in the Texas real-estate market, according to the Real Estate Center at Texas A&M University. The center says that more than half the existing homes sold by multiple listing services in major Texas cities last year were under $70,000. "Numbers for 1991 show buyers active in lower price ranges," says the center's Ted Jones. PROPERTY LOTTERY PROPOSED: Fred Sternau of Euro-American Communications Group Inc. has proposed the creation of a new business - Real Estate USA Inc. - that would help solve national real-estate problems by conducting lotteries. "Anyone would have the chance of winning ownership" in properties the Resolution Trust Corporation is trying to dispose of under government approvals in states that permit it, Sternau says. FIRM WOULD MANAGE PROPERTIES: Business executive Fred Sternau says that after obtaining regulatory approvals, he hopes to have the assistance of public officials and a prominent investment firm in organizing a real-estate lottery for Resolution Trust Corporation properties. Real Estate SUA Inc. would use lottery proceeds to by and manage for lottery winners properties obtained by lottery. BUDGET DEBATE TO BEGIN: Debate begins this week in the Wisconsin Assembly on a $6.9 billion budget bill. Republicans are unlikely to approve the current bill. The Senate dropped Gov. Tommy Thompson's plan to control property taxes through local spending limits. FIXED-RATE MORTGAGES RISE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.88% Monday, up from Thursday and up from 8.85% the week before. They were at 9.50% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.04%, up from Thursday and up from 5.99% the week before. A year ago they were at 7.45%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 4.64% Monday, up from Thursday and up from 4.55% the week before. A year ago they were at 6.32%. For the 11th District ARM index, rates were at 6.002%, unchanged from Thursday 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 Monday, listing at 8.07%. That's up 0.03 from rates of 8.04% Thursday and up 0.20 from rates of 7.87% the week before. A year ago T-bonds were at 8.32%. SPECIAL PACKAGE ON INVEST: CITIES ENCOUNTER CYCLES: "The family home is no longer the safe, sure investment it once was," says Tom Pfeiffer of Runzheimer International. Some cities such as Dallas, with negative home market values in 1987, 1988 and 1989 are on the rebound. But other cities with solid growth a few years ago are in a slump. If the need for a move occurs "at the wrong time" a huge loss is possible, he says. MIDWEST STEADY AND RELIABLE: Best bets over the past five years for real estate have been Chicago and other Midwest locales, according to Runzheimer International. Although they have not shown the spectacular increases of some East Coast and West Coast areas, they've been steady and reliable investments. Seattle topped all areas in gains in 1990 and 1991 but has cooled considerably. NEXT SPURT `ANYBODY'S GUESS': The next location for a spurt in residential real-estate values "is anybody's guess," says Pfeiffer. "Many companies who transfer employees have turned to the rental market to minimize risk and save on the cost of buying and selling properties within a short period of time," says Pfeiffer, a housing expert for Runzheimer International. (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