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 Mon, May 4 1992 Date: Mon, 4 May 92 05:17:38 EDT Message-ID: 05-04 0000 DECISIONLINE: Real Estate USA TODAY Update May 4, 1992 Source: USA TODAY:Gannett National Information Network L.A.'S RECOVERY MAY SLOW: The Los Angeles riots may set the region's economic recovery back months or years, experts say. The area's housing market, once red-hot, has been chilled by oversupply, sky-high prices and congestion, and oversupply from the 1980s has left commercial real estate crippled. Japanese investment has also declined, tightening the flow of money into southern California. (For more, see special Damage package below.) BRANCHING REGULATION OPPOSED: A regulation granting nationwide branching privileges to federally chartered, healthy S&Ls would make thrifts less vulnerable to downturns in local economies, says Office of Thrift Supervision Director Timothy Ryan. Two banking groups plan to file lawsuits to block the regulation, saying big banks and thrifts will drain money from small towns, hurting community lending needs. CONSTRUCTION SPENDING RISES: Aided by a 3.6% rise in spending on single-family homes, spending on residential, commercial and government construction rose 1.6% to a seasonally adjusted annual rate of $420 billion, the Commerce Department says. The figure is the third monthly increase in construction spending and its highest level in 15 months. February spending was revised to a 0.9% gain from a 0.4% drop. AVERAGE FIXED-RATE DOWN: Thirty-year, fixed-rate mortgages averaged 8.84% last week, down from 8.85% a week earlier, the Federal Home Loan Mortgage Corp. says. One-year adjustable rate mortgages averaged 6.10%, compared to 6.13%. from the previous week. AVERAGE SALE PRICE ROSE IN 1991: The average sale price of existing single-family homes rose in 38 states in 1991, an increase from 37 in 1990, reports the Century 21 Real Estate Corp. Alaska had the highest rate of appreciation with a 16% jump. South Dakota was next with a 13.7% increase. The survey was based on more than 600,000 "sides" of real estate transactions in the past two years. HOME-EQUITY LOANS INCREASE: While home values have generally fallen in many areas over the past few years, homeowners are borrowing more against their homes, reports David Olson Research. As of April 1992, the value of of home-equity loans outstanding was $365 billion, compared to $232 billion in 1987. MAINE CONSIDERS LAND BUY: On May 11, the Maine Land Board will discuss the purchase of a 523-acre peninsula jutting out into Spednic Lake, on the New Brunswick border. The land would be kept in its natural state. The cost of the purchase is estimated at $272,000. DEVELOPERS EYE HISTORIC SITE: A group working to develop Vore Buffalo Jump, where Native Americans drove buffalo to their death, near Spearfish, South Dakota, has asked the city to donate $475,000 to the project over the next 10 years. The development, which could attract 500,000 tourists yearly, would provide an economic boost to the city, the group says. SITES BATTLE FOR WESTERN RESORT: Two undisclosed Wyoming sites and one in South Dakota are being considered for the "Wild West World" resort. A decision between the sites is expected by the year's end. Legalized gambling is needed, says local developer Clarke Richter. SPECIAL PACKAGE ON DAMAGE: BUYERS, RENTERS MAY BE SKITTISH: Prospective buyers or renters may be fearful of sinking money into L.A. property, hurting values further, say experts. To limit long-term harm, says David Stewart, a University of Southern California psychologist and finance professor, leaders must show that damage, while extensive, was largely confined to residential and retail neighborhoods, not factories and downtown offices. OWNERS ELIGIBLE FOR SBA LOANS: Property damage estimates have reached $550 million in Los Angeles. Home insurance policies generally cover riot damage, but business insurance policies exclude riot and civil disorders unless the owner pays extra for the coverage. Los Angeles business and property owners are eligible for loans under the Small Business Administration's disaster relief program. UNINSURED OWNERS ELIGIBLE ALSO: The SBA program offers uninsured business owners a maximum loan of $500,000. It also provides a maximum loan of $100,000 to repair or replace uninsured real estate and a maximum of $20,000 for uninsured personal property. Interest rates range from 4% to 8.5%. L.A. residents can apply for the loans since it has been declared a disaster area by President Bush, the SBA says. (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