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 Thu, May 7 1992 Date: Thu, 7 May 92 05:31:39 EDT Message-ID: 05-07 0000 DECISIONLINE: Real Estate USA TODAY Update May 7, 1992 Source: USA TODAY:Gannett National Information Network ECONOMIC RECOVERY CONTINUES: The economic recovery has spread to nearly every corner of the USA, the Federal Reserve reported Wednesday. Home sales and home construction have picked up in most states. The West was the one weak region, partly because of a weak California real-estate market. But there is moderate growth elsewhere in the West in such states as Nevada and Utah that are attracting businesses. (For more, see special Report package below.) SALES OF USED HOMES RISE: Waterloo, Iowa; Biloxi, Miss.; Spokane, Wash.; and Pittsburgh led their regions with the lowest median prices for previously owned homes in the January-March quarter, according to a survey by the National Association of Realtors. Top prices were found in: Chicago; Washington, D.C.; Honolulu; and Newark, N.J. Sales of used homes rose in 44 states, the Realtors said. BANKS SQUARE OFF OVER DEVELOPER: Bankers Wednesday accused the Canadian Imperial Bank of Commerce of threatening to put Olympia & York's Canary Wharf Holdings into bankruptcy. O&Y Canary Wharf is a subsidiary of Olympia & York Developments, which is meeting Thursday with its 15 biggest bank creditors to discuss its plan to ease its financial difficulties by restructuring $12 billion of its debt. LOAN MEETING IS THURSDAY: The Olympia & York meeting with bankers Thursday will discuss prospects for the contributors to a loan to an O&Y subsidiary. One banker has said contributors to the loan could lose a third of their money. Tuesday at a meeting, 10 of 11 providers of bank finance for Canary Wharf indicated they would support a plan to provide Canary Wharf with $53.7 million. ADDITIONAL DEFERRALS POSSIBLE: Mortgage and Realty Trust said Wednesday that representatives of its creditors' committee have agreed to recommend to their respective institutions the approval of a proposal that would temporarily allow additional deferrals of scheduled principal amortization. Other adjustments include a plan to reduce non-performing assets and a temporary ceiling on debt interest rate. BILL WOULD HIKE PROPERTY TAXES: A bill introduced in the Baltimore City Council would raise property taxes in a 90-block commercial area to pay for increased security and sanitation services. Under the plan an additional 30 cents would be levied for each $100 of assessed property value. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.84% Wednesday, unchanged from Tuesday but down from 8.85% the week before. They were at 9.47% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.10%, unchanged from Tuesday but down from 6.13% the week before. A year ago they were at 7.23%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.34% Wednesday, unchanged from Tuesday but up from 4.32% the week before. A year ago they were at 6.11%. For the 11th District ARM index, rates were at 5.611%, unchanged from Tuesday but down from 5.800% the week before. A year ago they were at 7.654%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Wednesday, listing at 7.96%. That's down 0.04 from rates of 8.00% Tuesday and down 0.10 from 8.06% the week before. A year ago T-bonds were at 8.22%. SPECIAL PACKAGE ON REPORT: DEMAND INCREASES FOR PARTS: In the Northeast and East, manufacturers say demand is increasing for parts in the housing industries, according to a new Federal report. Early signs of strength in the New York area include declines in Manhattan and Long Island office-vacancy rates. Realtors say homes are selling quickly. In the Cincinnati area, housing starts in March were double those of March '91. GOOD NEWS IN SOUTHEAST: Real estate agents in the Southeast say home sales and starts continue to rise moderately. Carpet makers say orders from home builders are up and "momentum is now said to be building in the trade-up market," according to the Federal report out Wednesday. Memphis builders also report that trade-up buyers are re-entering the housing market and bankers say loan demand is up. SIGNS OF STRENGTH IN MIDWEST: A major Realtor in the Midwest region reports that sales of existing homes continued to strengthen in March and April. And a large construction contractor says bankers appear to be more willing to make loans. The northern Midwest reports signs of recovery. Sales of existing homes in Minneapolis-St. Paul are up 36% so far this year compared with the same period last year. WEST REPORTS ARE MIXED: Housing starts in the West are up sharply from last year but farmland prices are unchanged. Demand for lumber in the Texas area is strong. Building permits for single-family homes are rising strongly. But it's weaker in the far West. Commercial construction is weak and construction employment is falling in Hawaii "for the first time in years." Japanese developers are investing less. (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. 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