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 Tue, Jun 16 1992 Date: Tue, 16 Jun 92 05:20:20 EDT Message-ID: 06-16 0000 DECISIONLINE: Real Estate USA TODAY Update June 16, 1992 Source: USA TODAY:Gannett National Information Network CONDOS LOOK LIKE BARGAINS: When the Village Terrace Condominiums were built in Westerly, R.I., in 1987, they sold for $85,000. In May, one unit was sold for $64,000. But when 24 units are auctioned later this month, buyers might get a new home for about $50,000. It's a story being played out across the country, especially in areas where sales inventories of detached single-family homes increased as the market slumped. (For more, see special Condos package below.) COMPANY OFFERS FULL FINANCING: The Northern Trust Company, Chicago, Monday announced a program providing 100% home financing if a parent, relative or friend of the homebuyer deposits the 20% down payment required for a single-family home into a time deposit account. The deposit secures the loan until the balance reaches 75% of the property's appraised market value. The funds - in the depositor's name - earn interest. DEPOSITOR NOT LIABLE FOR ALL: Under Northern Trust Company's home financing program, if a buyer defaults on the mortgage, the depositor who put down the 20% down payment is liable only for the pledge. Assuming 5% annual appreciation on homes, the time-deposit account would be held for about six years on a 30-year mortgage. The program requires no extra fees or restrictions on the amount and type of home loan. MRT WANTS HOLDER ACCEPTANCES: Mortgage and Realty Trust said Monday it would solicit acceptances from holders of MRT's outstanding creditor obligations issued pursuant to a reorganization plan confirmed in February 1991 in MRT's bankruptcy case. MRT wants to modify creditor obligations to let holders receive modified securities in principal equal to the outstanding principal of the creditor obligations. PERMIT GRANTED FOR LANDFILL: Chambers Development Company Inc. announced Monday that it has been granted a permit for construction and operation of a solid waste sanitary landfill in Amelia County, Va. The permit authorizes the company to begin work on a landfill that will eventually use 404 acres on a 794-acre site. A series of wells surrounding the facility will monitor the groundwater quality. MORTGAGE PRODUCTION DOWN: The Boston Five Bancorp Inc. Monday reported that its subsidiary, the Boston Five Cents Savings Bank FSB, had residential mortgage production for the month ending May 31 of $116 million. For the seven-month period ending May 31, residential mortgage production totaled $914.8 million. For the comparable periods in 1991 The Boston Five had $123.4 million and $526.3 million. FIXED-RATE MORTGAGES DROP: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.54% Monday, down from Thursday and down from 8.59% the week before. They were at 9.66% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.90%, down from Thursday and down also from 5.94% the week before. A year ago they were at 7.22%. ARM INDEXES DECLINE: The one-year Treasury ARM index rates were listed at 4.18% Monday, down from Thursday and down also from 4.27% the week before. A year ago they were at 6.40%. For the 11th District ARM index, rates were at 5.427%, unchanged from Thursday and unchanged also from the week before. A year ago they were at 7.501%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Monday, listing at 7.85%. That's down 0.02 from rates of 7.87% Thursday but up 0.01 from 7.84% the week before. A year ago T-bonds were at 8.49%. SPECIAL PACKAGE ON CONDOS: CONDOS OFTEN MORE AFFORDABLE: During the 1980s, developers and buyers turned to condominiums as alternative housing, generally more affordable in times of double-digit interest and climbing real estate values. For many first-time buyers, it was the only home they could afford. But some developers were stuck with empty units as interest rates dived and housing went begging for buyers. MARKET BEHIND DETACHED HOMES: Although the National Association of Realtors says the condominium market is picking up, many local brokers report it's still lagging behind the single-family detached home market in most areas. That's good news for low-end buyers outside major metro or vacation resort areas. Some of the best prices are being seen at the auctions on behalf of developers and banks. AFFORDABILITY HELPS SUCCESS: Affordability seems to be a key to the success of condominium sales outside of resort areas, retirement villages and the tighter housing markets around major metro areas. The national median price of condos and co-ops was $84,100 during the first quarter of 1992, up 2.4% from the same period in 1991, according to the National Association of Realtors. That's the best since the late 1970s. (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. 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