"HomeShark Garner $20M in 3rd Round of Financing"

HomeShark Inc., an online discount mortgage broker and national home listings service, has closed on a $20-million third round financing, co-led by Weiss, Peck & Greer Venture Partners and Hyperion Partners.

"We have had significant interest from the investment community to participate in our third round of financing, but because of their partnership strengths we chose Weiss, Peck & Greer Venture Partners and Hyperion Partners to lead the way," said Ned Hoyt, HomeShark's founder and CEO.

Weiss, Peck & Greer is a recognized technology venture capital leader, and Hyperion is a recognized leader in funding and growing innovative financial services companies.

"They bring to HomeShark a wealth of experience, resources, and affiliations," Hoyt said.

HomeShark, http://www.homeshark.com, allows consumers to shop for a new home and a discount mortgage. HomeShark's core offerings are discounted mortgages from national lenders at less than half of traditional mortgage fees, and the HomeScout search engine that delivers the largest selection of online home listings from top real estate sites.

"GMAC, Case Enter Alliance for Farm Real Estate Market"

GMAC Commercial Mortgage Corp. and Case Credit Corp. have formed a strategic marketing alliance to offer GMAC Farmer's Advantage to farmers nationwide through Case Credit's dealer network. ``This program brings together two leaders in the financing industry,'' said GMACCM president David E. Creamer. ``GMAC Farmer's Advantage offers farmers efficient, flexible financing at competitive rates. Our commitment to this initiative is unparalleled.''

"Canadian P/C Insurers Win Praise for Ice Storm Buyouts"
Journal of Commerce (09/15/98) P. 5A; Tower, Courtney

Canada's property and casualty insurance industry paid $1.4 billion Canadian for damage caused by ice storms in January, according to Standard & Poor's DRI. The storms were located primarily in Quebec and Ontario and produced the most significant losses ever for the industry. But the Insurance Bureau of Canada praised the industry for its efforts in supplying the funds to allow Canadian residents to restore their homes. Canada's gross domestic product would have lost $2 billion Canadian without help from the insurance industry, according to the report.

"Lakefront Land Is New Frontier for Home Buyers"
Miami Herald (09/13/98) P. 1H; White, Donna Gehrke

Real estate professionals in Florida say that a lakefront view is almost synonymous with housing these days. "When you are in Florida you think of living on the water," says Lani Kahn, marketing and sales vice president for Lowell Homes. These days, "people come in saying, I want to live on the water," adds Yaznae Tauler, customer service representative for Atlantic Gulf Communities. Housing market observers estimate that today there are more than twice as many waterfront home as there were 20 years ago. And a large number of the waterways are man-made, which prospective homebuyers don't appear to mind. According to David Dabby, senior vice president of Miami-based Appraisal and Real Estate Economics Associates, 25 percent of homes in new developments have a waterfront view. Waterfront views tend to add anywhere from $15,000 to $40,000 to the cost of a home.

"Web to Offer National Home Appraisal Data"
Baltimore Sun (09/13/98) P. 1M; Harney, Kenneth R.

A joint venture to be formed by the Appraisal Institute and FNC Inc., an Internet software firm, will create the first national online database of appraisal information. The service will cover millions of homes and will allow both individual home buyers and professional lenders and brokers to determine the value of a home. This type of service has always been available, but only to professional appraisers and not on a national basis. Users of the service pay between $5 and $10 to view a property. Information on the home includes its price and tax information, a neighborhood description, and a detailed description of the home itself. Visitors can also look at comparable homes to determine the market value of a home. The service on the Web site, which has yet to be named, will likely only be used by a small fraction of individual consumers, but will be used mostly by lending institutions, according to William B. Rayburn, head of FNC.

"Housing Options Changing for Aging Population"
Washington Times (09/11/98) P. F35; Reeves, Pamela

With more and more Americans surviving well into their 80s and 90s, housing options for the elderly are increasing. Indeed, the choice is no longer just between a standard house and a nursing home. Harvard University's Joint Center for Housing Studies reports, "Growing demand for different levels of care has spawned a broader range of options. These new assisted-living facilities combine several levels of care in a residential rather than an institutional setting." Those interested in exploring the various assisted-living options available can visit the Assisted Living Facilities Association of America's Web site at www.alfa.org. For current data on reverse mortgages, log on to the National Center for Home Equity Conversion's Web site at www.reverse.org. Analysts report that the highest number of assisted-living facilities are in such states as Texas, Florida, California, Arizona, North and South Carolina, and Pennsylvania.

"Cecil County OKs Tax Break Meant to Curb Development"
Baltimore Sun (09/11/98) P. 3C; Shelsby, Ted

The Cecil County (Md.) Board of Commissioners recently approved a measure that offers farmers a 50 percent to 75 percent reduction in property taxes in return for their participation in a land preservation program. The law was developed, in part, to focus attention on the importance of the county's remaining farmland and compel the Maryland Agricultural Land Preservation Foundation to serve a greater role in protecting this land. Agriculture is a $54.4 million business in Cecil County and accounts for 60 percent of its complete industrial production. Yet as much as 700 acres are lost every year to development, according to William Kilby, president of the Cecil Land Trust. If a full countywide program is created, it will provide the region with $500,000 in state funding for preservation. Only $31,000 will be lost to the county due to annually reduced tax revenue.

"Market Turmoil May Allow U.S. Homeowners to Refinance"
Reuters (09/10/98) ; Rozens, Aleksandrs

Global economic turmoil may be hurting stock market investors, but homeowners only stand to benefit from the fluctuations. Problems around the world have led investors to reconsider U.S. Treasury securities, a change which has stimulated low bond yields and record low interest rates. Homeowners can save money over the term of the loan by refinancing to a lower interest rate during this period. Many consumers are already learning more about the refinancing process, and it is anticipated that the amount of refinancing activity will intensify in the next few months, as homeowners return from summer vacation and take advantage of the low rates.

"Builders Set Record in Permits"
National Mortgage News (09/07/98) Vol. 22, No. 50; P. 12; Avidon, Eric

Single-family residential construction permits reached an all-time high in the first half of 1998, as the number of permits rose 11 percent from the first half of 1997, according to the U.S. Housing Markets report by Hanley Wood Inc. The report indicated the success of the nation's homebuilding market despite an unstable stock market and international financial crises. Low mortgage rates, increased employment, and consumer confidence helped the market and could keep it strong for the rest of the year, according to the report. All nine Census Bureau regions experienced growth in housing permits, with the most growth occurring in the West South Central region, where permit volume rose 22 percent. The busiest city in terms of homebuilding was Atlanta, followed by Phoenix-Mesa, Houston, Dallas, and Las Vegas.

"Basking in Bright Sunshine of Nonstop Economic Good Times"
Los Angeles Times--Washington Edition (09/08/98) P. A5; Cart, Julie

Despite the risk of international economic problems and recent collapses in the U.S. stock market, residents of Tuscon, Ariz. have yet to feel any negative economic impact. While consumers across the rest of the country worry about further economic problems, Tuscon is benefiting from a booming economy, a 2.6 percent unemployment rate, and rapid job growth. Arizona is one of the fastest-growing states in the nation, and the attitude of its residents is representative of the confidence expressed in many high-tech communities in the Sun Belt. Tuscon is currently benefiting from a strong manufacturing base and a booming construction industry that is trying to keep up with the demand for housing, despite a shortage of labor. Consumer spending in Tuscon is at record levels, and many residents simply feel that the economy will correct itself, should it falter.

"Up Front: Back-to-Back-to-Back Records?"
Today's REALTOR (09/98) Vol. 31, No. 9; P. 9

As a result of a surge in mortgage applications in May and June, economists at the National Association of Realtors now expect that there will be a 10.2 percent increase in the sales of existing homes in 1998 from a year ago. If existing homes were to change hands at an annual pace of 4.64 million units, this would mean that for the third consecutive year a record for the number of resales will be set. Low interest rates and high consumer confidence in job security, income, and the stock market are believed to be the greatest factors influencing consumers to purchase a home.

"West Coast Optimism"
Builder (09/98) Vol. 21, No. 11; P. 54; O'Malley, Susan

The 7th annual California New Home Buyer Preference Survey is good news for real estate professionals because it can be seen as an indication that consumers are more confident about the economic outlook of the state. In fact, 69 percent of respondents believe that the economy will continue to improve over the next six months. Two years ago, just 33 percent the survey's participant felt the same. "The response was the highest we've seen in seven years," said John Schleimer, founder of Roseville, Calif.-based Market Perspectives, which is one of the companies that produced the survey. "The recession is over in California, or at least that's what people believe." Among the other findings of the survey, for 14 percent of respondents the Internet is their primary source of information on new homes. One year ago, only 4 percent said that they relied on the Internet.

Published: September 15, 1998

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