Path: bloom-picayune.mit.edu!snorkelwacker.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 Thu, Nov 5 1992 Date: Thu, 5 Nov 92 05:22:46 EST Message-ID: 11-05 0000 DECISIONLINE: Real Estate USA TODAY Update Nov. 5, 1992 Source: USA TODAY:Gannett National Information Network ECONOMIC GROWTH REMAINS UNEVEN: The economy continues to grow at a slow and uneven pace, the Federal Reserve said Wednesday in its latest review of conditions across the USA. The report was written for Fed policymakers who meet eight times a year. Encouraging were reports of stronger home sales in many regions, including New England, the Southeast and much of the Midwest. Sales are sluggish in the West. (For more, see special Report package below.) INDUSTRY WANTS QUICK ACTION: Real-estate industry officials hope Bill Clinton moves quickly to boost sagging real-estate values and increase funding for federal housing programs. But they don't want a bigger budget deficit. That would mean higher interest rates, including mortgage rates. Few experts expect higher rates. "Rates are going to go down because inflation is low," says one stock analyst. TAX BREAKS TOP WISH LIST: The real-estate industry has a wish list for President-elect Clinton. Topping the list: Tax breaks for commercial real estate, more generous terms for Federal Housing Authority loans and more federal housing support for low- and middle-income people. "We think Clinton doesn't have (Bush's) prejudice against investment in housing," says Ken Beirne of the National Association of Realtors. CALDOR BIDS FOR ALEXANDER'S: Caldor Corp. Wednesday bid $92 million in bankruptcy court for six Alexander's Inc. properties in the New York City area. The previous bid had been $82 million offered by Bradlees Inc. The six stores are in New York City, Yonkers, N.Y., and Valley Stream, Long Island. Separately, Alexander's reached an agreement to sell its World Trade Center mall lease to retailer Daffy Dan's. ERA TO OPEN IN FRANCE: Electronic Realty Associates LP Wednesday announced an agreement with the Group Pelloux of France to open a network of Electronic Realty offices in Common Market countries. France would be the first, in 1993. Electronic Realty is the USA's second-largest real estate franchise company. The first office is scheduled to open in Paris in May. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.21% Wednesday, unchanged from Monday and unchanged also from the week before. They were at 8.78% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.12%, unchanged from Tuesday and down from 5.13% the week before. A year ago they were at 6.58%. ARM INDEXES STABLE: The one-year Treasury ARM index rates were listed at 3.50% Wednesday, unchanged from Tuesday but up from 3.48% the week before. A year ago they were at 5.15%. For the 11th District ARM index, rates were at 4.874%, unchanged from Tuesday and unchanged from the week before. A year ago they were at 6.714%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds increased Wednesday, listing at 7.67%. That's up 0.01 from 7.66% Tuesday and up 0.07 from 7.60% the week before. A year ago the rates were at 8.00%. SPECIAL PACKAGE ON REPORT: NORTHEAST SHOWS HOPE: New England is seeing glimmers of home. Most places, prices have stopped falling. The volume of home sales is up 20% to 30% over 1991. Exception: Connecticut, where prices and sales are falling. New York office vacancy rates are falling in mid-Manhattan and surrounding suburban areas. Construction employment could get a boost. Expansion is planned at the three major airports. SLOW PROGRESS IN SOUTHEAST: Sales of low- to mid-price homes in the South and Southeast are strong, especially in Raleigh, N.C., thanks to demand from first-time buyers. The Raleigh economy, dependent on high-technology- and education-related jobs, escaped much of the recession. Realtors say it could take three years to replace all the homes destroyed by Hurricane Andrew. MIDWEST REPORTS ARE STRONG: In the Midwest, things look generally strong. A large real-estate firm reports record regional home sales in September. Construction activity, including casino projects by Native Americans, are under way. Sales of new homes in the region including Oklahoma and Wyoming are reported to be strong. Bankers say loan demand is up and orders for building products are up. CALIFORNIA STILL IS WEAK: Although most other parts of the country - even beleaguered New England and the rest of the Northeast - are showing at least faint signs of strength, California remains depressed. Home foreclosures in southern California have risen 74% in the first nine months compared to the period in 1991. Sales are strong in other parts of the region, including parts of Oregon and Utah. (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