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 Fri, Aug 7 1992 Date: Fri, 7 Aug 92 04:31:46 EDT Message-ID: 08-07 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 7-9, 1992 Source: USA TODAY:Gannett National Information Network SELLERS DON'T WANT TO GIVE UP: Many home sellers are being plagued by a single question: Whether to accept a low offer in case things get worse - or await a recovery. Sellers traditionally are reluctant to concede the tide has turned against them. That's especially true in California, where prices soared in the 1980s. The result: slumping sales - down 19%, compared with 1989 sales, in California. (For more, see special Seller package below.) 26% OF N.Y. PROPERTY TAX-EXEMPT: More than a quarter of the value of real estate in New York was exempt from taxation in 1990, according to a report released Thursday. The report, compiled by the state Division of Equalization and Assessment, found about one parcel in every five, or more than one million, received tax breaks totalling $274.5 billion. That's 26% of the total value of property in the state. MORTGAGE APPLICATIONS SLOW: Applications for mortgages slowed 3.1% the week ended July 31, the Mortgage Bankers Association says. But the volume of applications is still 150% higher than a year earlier because of falling interest rates. Refinancings accounted for nearly 58% of all applications. LAND PROGRAM DEAL SIGNED: The Irvine Co., based in Irvine, Calif., and the Nature Conservancy Thursday announced the signing of a management agreement for a land stewardship program. The 17,000-acre Irvine Company Open Space Reserve aims to "protect these natural resources in perpetuity ... and provide for early public use" of the land, said Irvine Chairman Donald Bren. ALLIANCE IS `STEWARDSHIP': The alliance between the Irvine Co. and the Nature Conservancy is "a stewardship plan" for 17,000 acres of land, Irvine Chairman Donald Bren said Thursday. Under terms of the two-year management agreement, the Nature Conservancy will manage the undeveloped reserve lands and implement the first phase of a comprehensive stewardship plan. PRUDENTIAL SIGNS LEASE FOR N.Y.: Prudential Securities has decided to keep its headquarters in Manhattan. The securities brokerage arm of Prudential Insurance Co. of America has negotiated the second-largest lease transaction in the history of New York City, Bloomberg Business News reported Thursday. Prudential will receive $106 million in tax and energy concessions from the city and state for staying. FIXED-RATE MORTGAGES UNCHANGED: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.05% Thursday, unchanged from Wednesday and down from 8.08% a week ago. They were 9.44% a year ago. For 30-year adjustable rate mortgages, the rates were 5.37%, unchanged from Wednesday and down from 5.45% a week ago. A year ago they were at 7.22%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.57% Thursday, unchanged from Wednesday and up from 3.53% a week ago. A year ago they were at 6.18%. For the 11th District ARM index, rates were at 5.258%, unchanged from Wednesday and down from 5.290% a week ago. A year ago they were at 7.155%. T-BONDS INCREASE: Treasury security rates for 30-year bonds showed an increase Thursday, listing at 7.44%. That's up 0.02 from rates of 7.42% Wednesday and down 0.01 from rates of 7.45% a week ago. A year ago T-bonds were at 8.23%. SPECIAL PACKAGE ON SELLER: SELLERS NEED TO BITE THE BULLET: A housing recovery can't begin until buyers and sellers start agreeing on prices. "Markets bounce back when reality sets in," says John Tuccillo, the NAR's chief economist. That can't happen until sellers start biting the bullet. In some hard-hit markets, that's already happening. OFFERS STILL ARE LOW: In the Boston area, where the median home price has fallen almost 10% since 1989, sales are up a bit from last year's depressed levels. In New Jersey, sales are up 24% in the first six months of 1992. But sellers are still under pressure. Offers are as much as 20% less than what sellers think is fair, says broker Bob Jaworski of Century 21. SELLERS MAY WANT TO TRADE UP: Today's sluggish market should be good news for homeowners looking to trade up. In many cases, the price of the home they want to buy has fallen sharply. But that isn't always obvious to sellers, says broker Dee Pardo. Many have their hearts set on homes they can't afford if they have to drop the price on their existing home. (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