Path: bloom-picayune.mit.edu!enterpoop.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Mon, Nov 2 1992 Date: Mon, 2 Nov 92 04:47:35 EST Message-ID: Lines: 117 11-02 0000 DECISIONLINE: Real Estate USA TODAY Update Nov. 2, 1992 Source: USA TODAY:Gannett National Information Network NEW HOME SALES LAG: Sales of new homes fell in September for the first time in five months, the government said Friday, but analysts predicted sales would increase modestly the rest of the year. Many also said the government's report of a 1% decline was suspect because its preliminary estimates have consistently underreported actual activity this year and subsequently were revised upward. (For more, see special Sales package below.) CALIFORNIA CRACKS DOWN: The California Department of Housing and Community Development has enlisted the assistance of the Attorney General's office to enforce state laws designed to produce more housing. The unprecedented move is supposed to break down barriers many cities place in the way of the development of affordable housing. Stern warnings were issued to 47 cities throughout the state to comply. BUILDERS ARE PLEASED WITH LAW: The National Association of Home Builders said Saturday that the Housing Authorization bill, signed by President Bush Wednesday, would help homeowners get Federal Housing Administration loans in high-cost areas. The new law raises the FHA's single-family mortgage limit to reflect local housing costs. The law also repeals the 57% limitation on financial closing costs for FHA buyers. THINGS LOOK BLEAK FOR O&Y: Olympia & York Developments Corp., struggling to escape losing the Reichmann family's real estate empire, may have to do just that to emerge from bankruptcy protection, Bloomberg Business News reported Friday. For months, O&Y has tried to avoid losing control of its assets. A proposed plan offers creditors 90% of the assets. But creditors say O&Y may be worth more dead than alive. GROUP BLASTS CLINTON'S COMMENTS: Associated Builders and Contractors said comments made Thursday by Bill Clinton that he would be willing to sign legislation to preempt the right of states to enact "right to work" laws would supersede laws in 21 states. The group, which represents 16,000 open shop construction firms, said the legislation would infringe on an employee's right to refuse membership in unions. BUSH GRANTS THRIFTS EXTENSION: Savings and loan institutions have been granted extra time to sell their real estate subsidiaries by a law signed by President Bush Friday. A 1989 banking law required thrifts to deduct their investments in real estate subsidiaries from their capital by July 1, 1994, and cut 40% by November of this year. The new law extends the 40% deadline to Jan. 1. CERTIFICATES ARE REFINANCED: The U.S. General Services Administration said Friday that it has successfully refinanced $101.3 million in mortgage participation certificates. The certificates had been issued during the early 1970s to finance the development of a number of public buildings projects. Officials said GSA is taking advantage of current low interest rates to pay down obligations of the taxpayers. FORTUNE BANCORP REDIRECTS: Fortune Bancorp hopes to raise cash by increasing its investment in fixed-rate and balloon mortgages, Bloomberg Business News said Friday. The Clearwater, Fla., bank holding company, which previously stressed the sale of adjustable rate mortgages, plans to increase the amount of fixed-rate and balloon loans it pools and sells to the Federal Home Loan Mortgage Corp. BILL REDISTRIBUTES WATER: President George Bush's signing Friday of the western water omnibus bill was hailed by the Metropolitan Water District in Sacramento as the most important event in California water history in the past 20 years. The new law redirects the focus of the Central Valley Project, allowing the voluntary transfer of water from agriculture to California's water-short urban areas. SPECIAL PACKAGE ON SALES: AUGUST SALES TOTAL WAS REVISED: According to the Departments of Commerce and Housing and Urban Development, new home sales totaled 617,000 at a seasonally adjusted annual rate in September, down from a sharply revised annual rate of 623,000 in August. The revised August data showed sales actually rose 1.6%, instead of falling 6.1% to a 570,000 annual rate. BUILDERS DISCOUNT SEPT. DROP: The National Association of Home Builders discounted September's figures because of August's upward revision, saying September rates would probably also be revised. According to the Commerce Department, the annual rate of 617,000 in the third quarter is up 10% from the 561,000 rate in the second quarter. Regionally, September sales posted a 25.3% gain in the Northeast. WESTERN SALES ARE IN A RUT: Sales were up 3.6% in the South, but down 14.4% in the Midwest and 8.4% in the West. Analysts said sales have been driven in recent months by the lowest mortgage rates in nearly 20 years. Rates dropped to 7.84% during the week ended Sept. 11, the lowest since 7.76% on June 29, 1973, according to the Federal Home Loan Mortgage Corp. (End of package.) Real Estate Editor: Martin Baucom. (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