Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Jun 30 1992 Date: Tue, 30 Jun 92 05:22:40 EDT Message-ID: 06-30 0000 DECISIONLINE: Real Estate USA TODAY Update June 30, 1992 Source: USA TODAY:Gannett National Information Network MAY NEW-HOME SALES FALL: New-home sales fell 5.6% in May from April, the fourth consecutive drop, the Commerce Department said Monday. The decline was expected, but the West's sharpest decline in a decade pulled the national figures down, despite gains in the Northeast and South. Nationally, May's 501,000 annual sales rate for single-family homes was the worst since 499,000 last September. POOR SALES BLAMED ON JOB FEARS: The Commerce Department's report on May new-home sales also offered soem bad news for April. The department revised April's sales from a 1.3% gain to a 2.7% decline. Lingering concerns about job security are preventing home buyers from taking advantage of a "favorable climate," says Eric Elder of Kaufman and Broad Home Corp. In May, 30-year fixed rate mortgages averaged 8.6%. WEAK LAWS HURTING BUYERS: Home buyers lose billions of dollars each year because many state's don't require real estate agents to tell buyers when they also represent home sellers, says a study out Monday. The joint study by the Consumer Federation of America and American Association of Retired Persons criticized state's for not adopting strict disclosure laws. (For more, see special Buyers package below.) HIGH COURT RULING FAVORS OWNERS: People denied the use of their property for the public good must be compensated, the Supreme Court ruled Monday. The decision stemmed from a South Carolina case in which a coastal land owner was barred from building on the land. South Carolina's Supreme Court ruled that no compensation was necessary. Monday's decision was hailed by the National Association of Home Builders. USA `UNPREPARED' FOR QUAKE: The USA is "totally unprepared" for the consequences of a large earthquake, the United Homeowners Association said Monday. The UHA, citing government figures, said that while at least 39 states could suffer earthquakes, less than 10% of the people in those states have earthquake insurance. In California, less than one in four households have earthquake insurance. UHA CALLS FOR QUAKE INSURANCE: In light of Sunday's earthquakes in California, the United Homeowners Association Monday urged passage of national Earthquake Insurance Legislation. Without such a program, the federal government and state governments will have to provide tens of billions of dollars to rebuild communities, the UHA said. The program is modeled after the existing Flood Insurance program. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.48% Monday, unchanged from Thursday and unchanged from the week before. They were at 9.67% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.84%, unchanged from Thursday and unchanged from the week before. A year ago they were at 7.25%. ARM INDEXES RISE: The one-year Treasury ARM index rates were listed at 4.14% Monday, up from rates of 4.12% Thursday and up from 4.12% the week before. A year ago they were at 6.36%. For the 11th District ARM index, rates were at 5.427%, unchanged from Thursday and unchanged from the week before. A year ago they were at 7.329%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Monday, listing at 7.77%. That's down 0.01 from rates of 7.78% Thursday and down 0.07 from rates of 7.84% a week before. A year ago T-bonds were at 8.43%. SPECIAL PACKAGE ON BUYERS: FEW STATES REQUIRE DISCLOSURES: Only six states require real estate agents to tell home buyers when they also represent sellers, says a new study. Only New York, Louisiana, Massachusetts, New Hampshire, Texas, Idaho and the District of Columbia have full disclosure laws, according to the report. Some other states require partial disclosure. Montana and Vermont have verbal disclosure laws. CONFLICT OF INTEREST CITED: Real estate agents representing both buyers and sellers are likely to favor a higher sale price, resulting in a higher commissio5qQQr the agent, says the study. But strict state disclosure laws would help consumers bargain and be less likely to give agents personal financial information that could be used by the seller, the study adds. GROUPS PLAN AWARENESS CAMPAIGN: The American Association of Retired Persons and the consumer federation have announced a publicity campaign to help buyers. It will target senior citizens, the most likely to suffer from an agent's conflicting interests, says Anne Harvey, director of AARP's programs division. The two groups also plan to lobby state governments to impose tougher disclosure laws. (End of package.) Real Estate Editor: Christopher Goldthwaite. (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