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 31 1992 Date: Tue, 31 Mar 92 05:49:46 EST Message-ID: 03-31 0000 DECISIONLINE: Real Estate USA TODAY Update March 30, 1992 Source: USA TODAY:Gannett National Information Network HOME SALES EDGE DOWN IN FEB.: New homes sales fell by 2.7% in February, according to the Commerce Department. That's a 25% increase from February 1991. The department said Tuesday sales in February were at a seasonally adjusted annual rate of 613,000, down from 630,000, the revised figure for January. The numbers still are strong, but the outlook is cloudy, according to the National Association of Home Builders. (For more, see special Sales package below.) JAPANESE INVEST IN HAWAII: Japanese investment in U.S. real estate totaled $5.1 billion last year, according to Kenneth Leventhal & Co. Hawaii was the top area for investment, garnering 33% of Japanese real-estate dollars. California followed with 19% and New York was close behind at 17%. Guam got 13% and Texas finished the Top 5 with 3%. HOUSING FOR THE RECOVERED: Portland, Ore.'s Downtown Housing Preservation Partnership plans to refurbish a building to provide permanent housing for graduates of drug and alcohol recovery programs who don't have homes. The DHPP partners include the Portland Development Commission, Central City Concern, the Portland Metropolitan Chamber of Commerce and the Housing Authority of Portland. DHPP was created in 1988. PUBLIC PARK PLANNED: The Community Redevelopment Agency of the city of Los Angeles plans to develop the first major public park built in a downtown area since 1870. Grand Hope Park will be part of a mixed-use residential community in the South Park neighborhood. THIS COULD BE A GOOD YEAR: The Resolution Trust Corp. and the "REO departments of banks" are now a "major client category for services aimed at owners of real property," according to Gerry Ring Waltz of the National Network of Commercial Real Estate Women. Waltz, a senior escrow officer in Phoenix, says that title insurance professionals "with new marketing efforts" will likely have a good year this year. COLUMBIA ANNOUNCES EARNINGS: The Board of Directors of Columbia Real Estate Investments Inc. Tuesday announced net earnings of $4.4 million for the year. That generated a return of 9.42% on average net assets and compares with net earnings of $4.8 million for 1990. Net earnings per share for 1991 were .92, unchanged from 1990. That's based on 4.7 million weighted average shares outstanding vs. 5.2 million in 1990. FIXED-RATE MORTGAGES DOWN: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.98% Monday, down from Thursday and down from 9.03% the week before. They were at 9.52% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.19%, down from Thursday and down from 6.22% the week before. A year ago they were at 7.41%. ARM INDEXES DOWN: The one-year Treasury ARM index rates were listed at 4.64% Monday, down from Thursday and don from 4.73% the week before. A year ago they were at 6.34%. 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 7.848%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Monday, listing at 7.94%. That's down 0.04 from rates of 7.98% Thursday and down 0.09 from 8.03% the week before. A year ago T-bonds were at 8.25%. SPECIAL PACKAGE ON SALES: SALES `HIT A PLATEAU': Home sales have "hit a plateau," according to Robert Bucher of the National Association of Home Builders. Sales were down in February from January. Mortgage rates are near 9% after bottoming out near 8% earlier in the year. "The upward turn in rates, coupled with the political stalemate over economic stimulus" and the proposed buyer tax credits could slow sales in spring, he said. MIDWEST SEES PLUNGE: Home sales in February dropped 14.4% in the Midwest to a seasonally adjusted annual rate of 125,000 after a jump in January to 146,000. In the South, sales dropped 1.7% to 236,000. Sales rose 14.1% in the Northeast to a rate of 73,000. They remained unchanged at 180,000 in the West. The median price of a new home fell to $117,000 in February, off $6,000 from January. NEW HOMES DECLINE: The number of new homes for sale in the USA fell to 272,000 in February. Regionally, inventory levels in the Northeast and West declined to 58,000 and 74,000, respectively. Inventory improvements are "laying the groundwork for a sustained housing upswing" if demand stays, according to Buchert. He said interest rates and the homebuyer tax credit could affect demand. (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