"Private Mortgage Insurance"
Consumers' Research (08/98) Vol. 81, No. 8; P. 6; Coorsh, Richard

Last month, federal legislation was approved enabling American homeowners to suspend their private mortgage insurance once they reach a 20 percent equity share in their home. Furthermore, if equity grows beyond 22 percent, lenders are legally obligated to cancel private mortgage insurance. This regulation will apply to any new mortgages established at least a year following implementation of the measure, and will not affect "high risk" loans, or FHA loans. Typically, lenders require private mortgage insurance for borrowers who submit a down payment below 20 percent.

"Homeowner Alert: Synthetic Stucco Suit Settled"
Today's REALTOR (09/98) Vol. 31, No. 9; P. 26

Homeowners who have Synergy exterior wall systems that have sustained moisture-related damage through and around windows, doors, and other openings may be able to find relief in a $20 million national class action settlement that the subsidiary of Harris Specialty Chemicals Inc. recently reached. The synthetic stucco product Exterior and Finish System components (EIFS) in question was sold under the Synergy and ThoroWall brands. Homeowners can obtain more information as to whether they are eligible for repairs or cash payments by calling 800-441-0282. Homeowners can also point a Web browser to www.kinsella.com/eifs.

"Home Prices Hit a Snag"
New York Times (09/24/98) P. D1; Rozhon, Tracie

After a strong spring, prices are gradually declining in a number of Manhattan markets as home sellers reduce their asking prices, according to the Halstead Property Company and the Corcoran Group. The main reason for the price declines is nervousness about the stock market, although Clark Halstead, managing partner of Halstead, says the market's downturn is more of a correction than a decline. Many brokers have said their clients are waiting for the stock market to correct itself and aren't sure they want to keep their home prices as high as they would like. This trend has reduced the number of bidding wars, which were common in the spring. As a result, many agents and sellers are acting cautious, even if they say the decline isn't significant. But not all properties are feeling the market's effects. Luxury homes in suburban Connecticut have shown no effect from the market, according to some brokers.

"Fed Chairman Renews Hopes for a Rate Cut"
New York Times (09/24/98) P. A1; Stevenson, Richard W.

Federal Reserve Chairman Alan Greenspan recently made his strongest suggestion yet that interest rates may soon be reduced. Greenspan said that a struggling world economy might spur the United States to cut rates in an effort to spur international markets. His statements led the stock market to increase greatly, as the Dow was up 257 points. But Greenspan also said that strong economic conditions in the United States, including low unemployment, could mean that rates won't necessarily be reduced, despite his warning that a global financial crisis could slow growth in the United States. The Federal Reserve hasn't cut interest rates since 1996, but many analysts say that is likely to happen this year. Cutting rates could spur more domestic growth, which could lead to investments from foreign markets.

"Bergamo Publications Offers 'The Book of Home Purchase'"
Business Wire (09/22/98)

To assist and guide home buyers searching for their first home, contractors Tim Perry and Dan Prouty have released "The Book of Home Purchases." The book is to be used as an informative resource for home buyers when they are visiting homes. It provides home buyers with a checklist for potential problems, a repair/replacement cost worksheet, and information on how defects may be corrected.

"House Hunting With Cursor and Click"
New York Times (09/24/98) P. E1/2; Whitaker, Barbara

Online services are giving home buyers nationwide greater control of their home searches. Such technology, though, is also changing the rules of real estate transactions. For those who prefer to do a lot of research before even setting foot in a potential new home, they are no longer limited to visiting listed homes with a Realtor. Houston Association of Realtors Chairman George Stephens confirms, "The Realtor of yesterday was totally in control of basic information. Today, the consumer is basically controlling the information." Consumers are discovering that real estate services on the Web are highly competitive, especially since Microsoft entered the market earlier in the summer with its Home Advisor site, which can be accessed at www.homeadvisor.com. However, the Web site of the National Association of Realtors at www.realtor.com is still the largest with over 1.2 million listings. In many cases, Web listing services have made it easier on the Realtor, with many potential buyers already narrowing their searches and having an idea which house they want before they even come calling. Indeed, a recent survey of Corcoran Group buyers found that clients who used the Internet to find their new home spent only about 25 percent as much time doing so, as customers who had gone the traditional route. The company's Internet-related sales skyrocketed from $4.9 million in 1995 to $60 million last year.

"Fresh Start"
Chicago Tribune (09/20/98) P. 16-5; Adler, Jane

Realtors in the Chicago area are finding another source of new home buyers among empty-nesters. Although statistics are not yet available, empty-nesters represent a strong segment of buyers within the downtown real estate market, purchasing homes or condos closer to work and entertainment. These groups favor communities that have been specifically designed with fitness centers, security gates, and maintenance services. Furthermore, empty-nesters appear to prefer larger units with two or three bedrooms, despite the added cost. These sizable condos vary in cost from $250,000 to $500,000. Many are also discovering that without young children, they have more in common with the singles and newly married couples who settle in the city, rather than the suburbs. Other empty-nesters are finding new homes in the downtowns of suburban communities appealing. According to Optima Inc. President David Hovey, a developer of condos in North Shore downtowns, approximately 63 percent of the 600 units constructed have been purchased by empty-nesters. He estimates that between 60 percent and 90 percent of these buyers are from nearby communities. "New is attractive. There's a freshness to a new apartment. But they don't want the maintenance." Hovey explained. Suburban condos outside of Chicago range in price from $125,000 to $300,000.

"Brooklyn's Russian Residents Find a 'Suburb' in a Neighborhood Next Door"
New York Times (09/23/98) P. A29; Yardley, Jim

A number of Russian immigrants moved to the Brighton Beach neighborhood of Brooklyn at the beginning of the century. Over the years, many of them have moved up to Manhattan Beach, an affluent Jewish neighborhood nearby, and there is little barrier between the two communities. New generous homes are being constructed throughout Manhattan Beach, and many of them resemble old Russian architecture. The prices of these homes range from $400,000 to $1.2 million, and almost two-thirds of the home buyers in the area are Russians, according to local real estate agent Jon Sobel. But at the same time, tensions have evolved in both communities. In Manhattan Beach, many older residents say their city has been changed by the influx of Russian residents. Meanwhile, officials in Brighton Beach say that too many long-time residents are moving out and as a result, the community's housing stock is suffering. These officials are trying to encourage more waterfront development in an effort to attract residents. But not everyone is opposed to the changes. Sobel says that property values in Manhattan Beach have improved because many Russian movers have replaced deteriorating older homes with new residences.

Published: September 24, 1998

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