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 Wed, Mar 18 1992 Date: Wed, 18 Mar 92 05:44:27 EST Message-ID: 03-18 0000 DECISIONLINE: Real Estate USA TODAY Update March 18, 1992 Source: USA TODAY:Gannett National Information Network CONSTRUCTION STARTS JUMP 9.6%: Housing construction starts took a 9.6% jump in February proving homebuilders are escaping their recession doldrums. Builders broke ground on homes and apartments at a seasonally adjusted annual rate of 1.3 million units, the Commerce Department said Tuesday. That's up from 1.19 million in January and the best month for home construction in almost two years. (For more, see special Starts package below.) SURVEY BACKS BUYER TAX CREDIT: The National Association of Realtors Tuesday responded to a survey showing support for a homebuyer tax credit and penalty-free withdrawals from Individual Retirement Accounts. President Dorcas T. Helfant said that 71% prefer a proposal giving a tax credit to first-time buyers of new and existing homes. "NAR is in favor of enacting legislation that would stimulate the economy," she said. IRA ASSISTANCE SUPPORTED: Dorcas Helfant of The National Association of Realtors said a survey by The Tarrance Group and Greenberg-Lake:The Analysis Group showed that 68% said they would like to allow parents and grandparents to withdraw from their retirement accounts to help a child or grandchild first-time homebuyer. "Most first-time buyers don't have an IRA" or have one with little money, said Helfant. LOW-INCOME HOMES OPEN: Twenty-four single-room apartments for the homeless, migrant workers and students who meet income rules of the Department of Housing and Urban Development have been opened at a former farm labor camp in Twin Falls, Idaho. The sliding-scale rent at El Milagro - Spanish for "miracle" - won't exceed 30% of the renter's income. LOANS UP FOR RENEGOTIATION: Nearly half the $400 billion outstanding in construction loans made during the mid- and late-'80s will be up for renegotiation during 1992 and 1993, according to Steven Westra of Associated Builders and Contractors. Interest rates are much lower than when the loans were made meaning banks face refinancing at lower rates. "Banks are leery of further involvement in construction lending." NEW HOUSING UNITS PROPOSED: The Navy has proposed building 2,500 new housing units in Kitsap County, Washington, to improve the quality of life for sailors and their families. The proposal calls for 1,300 new homes and 1,200 bachelor units. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.88% Tuesday, unchanged from Monday 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%, unchanged from Monday but up from 5.99% the week before. A year ago they were at 7.45%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.64% Tuesday, unchanged from Monday but 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 Monday and unchanged also from the week before. A year ago they were at 7.858%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Tuesday, listing at 8.00%. That's down 0.07 from rates of 8.07% Monday but up 0.13 from 7.87% the week before. A year ago T-bonds were at 8.40%. SPECIAL PACKAGE ON STARTS: APARTMENT STARTS DECLINED: The 9.6% increase in housing starts last month could have been even better. A decline in apartment construction held down the total. Single-family home starts increased almost 15% last month. That's a bit of economic good news: Construction traditionally has played a leading role in helping to pull the USA out of its economic slumps. RECOVERY IS ACROSS USA: The recovery isn't regionally concentrated. Housing starts rose 6.4% in January, but that gain was concentrated in the Midwest, where warm winter weather boosted starts more than 30%. Starts fell everywhere else. Last month saw strong growth in all regions. Starts rose 14% in the Midwest, 10% in the West, 7% in the South and 8% in the Northeast. `THIS IS NOT A BLIP': "This is clearly not a blip. We're looking at a sustained recovery," says Robert Hess of WEFA Group Inc. Homebuilders agree, but say the revival has been strongest in the demand for affordable, low-end homes. Demand for high-priced homes remains sluggish in many markets. Also, many apartment projects are lagging. Some markets still are glutted from the 1980s boom. (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