DESPITE DIP, EXISTING HOME SALES
CONTINUE STRONG
WASHINGTON, DC -- Sales of existing single-family homes decreased during
August but continued on a pace expected to challenge the record annual
total set in 1998, the National Association of Realtors said today.
Compared to the previous month, the seasonally adjusted annual rate of
existing home sales dropped by 2.8 percent in August to a level of 5.25
million units compared to the previous month. Despite the decrease, it
marks the tenth consecutive month the sales pace has been more than five
million. Compared to August 1998, existing home sales increased by 9.2
percent.
NAR President Sharon A. Millett said the decline reflects a market
settling down to a normal pace.
"Sales of existing single-family homes in August exceeded five million,
and that fact illustrates a robust and healthy housing market," she
said. "Slips in sales are common in any marketplace. In the case of
existing home sales, recent jumps in interest rates coupled with the
fact that many consumers spend August vacationing rather than home
shopping are factors that will typically impact sales."
NAR's forecast for existing-home sales is 5.2 million units, up 4.8
percent from last year's record of 4.97 million sales.
According to Dr. James F. Smith, NAR's chief economist, despite rising
interest rates that may have forced some consumers to put their
home-buying decision on hold, home sales are still on a strong track
overall and are expected to remain well ahead of 1998.
"The potential for another record year for sales of existing homes is
likely," Smith said.
U.S. ECONOMY HEADED FOR 'COLD
SHOWER?'
CHICAGO, Ill. -- The U.S. economy could be headed for a "cold shower" in
the next six months but will emerge stronger and more balanced, a
renowned economist said here this week.
Dr. Kenneth S. Courtis spoke to 600
attending Transact '99, the nation's first international
commercial real estate conference, which is sponsored by the
National Association of Realtors and the Urban Land Institute.
He said that between now and the end
of the first quarter 2000, the U.S. economy likely will
experience higher interest rates, slower economic growth,
declining profits and a decline in the equity market. He
called the slowdown "inevitable" and "healthy."
Courtis predicts the Federal Reserve
Board likely will raise interest rates further, possibly by as
much as three-quarters of 1 percent by the first quarter next
year.
However, any actions to slow economic
growth will be moderate to keep the economy from "coming down
too hard" and shaking up world-wide financial markets, said
Courtis.
The period of slow economic growth
will be short-term, said Courtis, probably lasting for the
next six months. That will be followed by a period of even
more growth synchronized with the economies of Europe and
Asia.
Courtis is first vice president of
Deutsche Bank Asia Pacific in Tokyo.
NO SINGLE SOLUTION TO SMART
GROWTH, EXPERTS SAY
CHICAGO, Ill. -- Every community or
region needs to determine its own solutions to issues
surrounding sprawl and smart growth based on the needs and
diversity of its citizens, land-use analysts said here during
Transact '99.
Experts say the definition of "smart
growth" depends on who is asked to define it.
Smart growth is more about
sustainability and the dynamic between ecology, economy and
community, said Michael Horst, Urban Land Institute vice
president. Mary White-Vasys, Bank of America senior vice
president, said smart growth was about working to see an
integrated and collaborative approach to planning and to have
voices heard by all on decisions regarding land use, housing
and transportation.
Horst told attendees that because
sprawl has multiple causes, it requires multiple solutions. He
said communities need to bring all the players together where
rhetoric can be left outside and issues discussed.
"Growth is inevitable," Horst said.
"The nation's population is growing at a tremendous rate, and
it will continue to grow; therefore, a 'no-growth' approach is
not a solution."
OFFICE MARKETS MUST ADJUST TO
TENANT NEEDS
CHICAGO, Ill. -- Office markets must
adjust rapidly to accommodate today's businesses, many of
which have space and leasing requirements vastly different
from years past, industry experts said here this week at
Transact '99, the nation's first international commercial and
real estate conference.
A sizable portion of the office market
is being reshaped by technology "dot-com" firms and
multinational firms that are heavily reliant on the Internet,
said Richard D. Kincaid of Equity Office Properties Trust. The
office needs of these firms reflect a changing workforce
culture. High priority is placed on proximity to health clubs,
good restaurants and the availability of concierge services.
Kincaid said firms often seek to use
their workspace to brand their businesses through the
selection of non-traditional interior designs featuring more
common space, less individual workspace and even
"decompression chambers" and "play rooms." They are using
space differently, and you have to be flexible to provide them
the right work environment, he said.
Because these companies work on
"Internet time," they seek far shorter lease terms, Kincaid
said. "The ten-year lease will be shortened considerably."
According to Glodie B. Wolfe of
Insignia/ESG in Chicago, these businesses tend to favor office
space that is cost-efficient.
"These companies are not looking for
trophy-type buildings," said Wolfe. "Unless a building is
priced economically, it will not do well just because it is
tall."
Wolfe predicts a strong market for
smaller "B" and "C" class buildings, many of which are being
renovated to meeting the needs of office tenants or for reuse
as apartments.
AUSTIN BREAKS GROUND ON
LARGEST DOWNTOWN APARTMENT PROJECT
AUSTIN, Tex. (BUSINESS WIRE) --
Groundbreaking ceremonies were held this week in Austin for
the largest residential apartment community built to date
downtown.
West Avenue Lofts by Post is a new
residential development located on three acres next to Shoal
Creek. It will feature access to Austin's hike and bike trail,
downtown's West 6th Street retail district, Whole Foods'
flagship store and the popular Warehouse entertainment and
dining area.
"This public-private partnership is a
first for our city, and it jump-starts our 24-hour downtown,"
Austin Mayor Kirk Watson said. "A vibrant city has a downtown
that is alive, is safe and is a place people can call home.
This project brings an excitement of things to come."
Projected cost for the project is $21
million. Among the 242 apartments will be units from two to
four stories ranging in size from efficiencies to
three-bedroom lofts. Ground floor units will have scored and
polished concrete floors while lofts will have wood floors.
CONSTRUCTION IN THE NEW
MILLENNIUM
IRVING, Tex. /PRNewswire/ -- Anyone
interested in construction trends in the new millennium should
check out the North Texas Construction EXPO slated for Oct.
26. The event, sponsored by Associated Builders and
Contractors (ABC) North Texas in partnership with Texas
Construction Magazine, will be held at the Arlington
Convention Center from 11 a.m. to 6 p.m.
Texas high school students have been
invited to attend the 3rd annual "Careers in Construction"
teleconference during the EXPO. The teleconference airs at 10
a.m. and will be broadcast nationally with a message on the
need for today's young people to meet workforce shortages,
earning potential for these careers and job satisfaction.
Students will watch ABC's second
annual craft competition as area apprentices vie for the right
to advance to ABC's National Craft Olympics.
"Constructing in the New Millennium" will
feature Dave Bush, ABC national president as moderator. Industry
experts will discuss the shape of things to come. Results of a
survey of contractors, suppliers and industry officials will discuss
alternative project delivery systems, industry consolidations,
workforce shortages and trends in North Texas. Morning and afternoon
seminars will focus on a variety of issues relevant to North Texas
contractors.
For more information, call JoAnn Ramsey at
800-627-5996, ext. 108 or visit http://www.abcnt.org.
KOHL'S ADDING 11
TEXAS STORES
MENOMONEE FALLS, Wis. /PRNewswire/ --
Seventeen new Kohl's Department Stores will have their grand
openings Oct. 8. Eleven of the new stores are in the Dallas-Fort
Worth market.
Kohl's is a 37-year-old company with
moderately priced national brand apparel, shoes, accessories and
home products.
With the new openings, Kohl's will have 257
stores in 24 states.
CLEANING UP IN
LUBBOCK
MOUNT LAUREL, N.J. /PRNewswire/ -- Crystal
Falls Car Wash of Lubbock and Cherry Hill Car Wash of Cherry Hill,
N.J., have been purchased by Mace Security International. The washes
have combined annual sales of more than $4 million and wash about
200,000 cars per year.
Crystal Falls is the third major car wash
owned by Mace in the Lubbock area. An aggressive marketing campaign
is planned to build the brand name on the Texas high plains.
SUPPLY OF
AFFORDABLE HOUSING SHRINKING
WASHINGTON, DC -- The number of houses and
apartments that families with low incomes can afford to rent is
shrinking, according to a new report from the Department of Housing
and Urban Development (HUD).
"The sad truth is that more and more people
working low-wage jobs, as well as older Americans living on fixed
incomes, are being priced out of the housing markets as rents rise,"
said HUD Secretary Andrew Cuomo.
The new report --"The Widening Gap: New
Findings on Housing Affordability in America" -- found:
-- Despite a period of robust economic
expansion, the number of affordable rental units decreased by
372,000 (5 percent) from 1991 to 1997.
-- Rents are rising at twice the rate of
general inflation. In 1997, rents increased 3.1 percent while the
overall Consumer Price Index increased by only 1.6 percent. In 1998,
rents increased 3.4 percent while the CPI increased 1.7 percent.
-- The number of renters at or below 30
percent of median income continues to grow. Between 1995 and 1997,
the number of struggling renter households increased by 3 percent to
8.87 million -- one of every four renter households in America.
-- In 1997, for every 100 households at or
having less than 30 percent of median income, there were only 36
units both affordable and available for rent.
FEDERAL REALTY
TERMINATES SALE TALKS
ROCKVILLE, Md. (BUSINESS WIRE) -- Federal
Realty Investment Trust announced today it has terminated previously
announced discussions to sell its shopping center assets, some of
which are in San Antonio.
Federal Realty officials said they were
unable to reach a definitive agreement and are reevaluating their
previously announced plan to spin off its main street retail assets.
The trust's portfolio contains 122 retail properties.
COUNTRYWIDE
STREAMLINING HOME LOANS
CALABASAS, Calif. /PRNewswire/ -- A new
program to streamline home loan applications has been announced by
Countrywide Home Loans, Inc.
Countrywide's Fast and Easy Loan allows
buyers to apply for a loan without providing documentation of income
or assets. It works well for homebuyers with solid credit histories
and for those who wish to refinance. It eliminates much of the
paperwork usually required of borrowers and reduces loan processing
time and effort -- particularly beneficial in competitive real
estate markets where timely loan funding can make or break a home
purchase.
For home loan information, call 800-570-98888
or visit http://www.countrywide.com.
ATHENS STORE IS
HIBBETT'S 200TH
BIRMINGHAM, Ala. (BUSINESS WIRE) -- The new
Hibbett Sporting Goods store in Athens is the company's 200th
overall and the sixth in Texas.
"It is only fitting that our 200th store is a
strip center location," said Michael Newsome, president and CEO.
"Since focusing our new store opportunities primarily on strip
centers, we have increased the potential number of new store
locations from 500 to 700 small and midsize markets within a
20-state area. For the last three fiscal years, our store base has
grown at a compound annual growth rate of more than 36 percent."