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M arch 17,1993 • T he P ortland O bserver
P agi AS
Housing Market Continues To Ride
Wave Of Consumer Optimism
Sales of previously owned homes
rose sharply in January from one year
earlier, as the housing market contin
ued to ride a wave of consumer opti
mism, according to the National As
sociation of Realtors
The association recorded a sea
sonally adjusted annual sales rale of
3.78 million existing single-family
homes in January , up 14.9 percent
from January 1992, when the resale
rate was 3.29 million units. The trend
over the past four months shows the
market heading for its strongest year
since 1979.
According to NAR President
William S. Chee, homes sales have
picked up notably in markets across
the nation, due to growing consumer
confidence. “More and more' for sale'
signs are going up," he said, “We’re
seeing people w ho want to sell, not
just those who have to sell. The tim
ing is good now for both sellers and
buyers.”
Steady activity by first-time buy
ers has spurred an increase in pur
chases by those trading up to larger
homes, Chee noted.
Low mortgage rates are continu
ing to make home ow nership very
affordable. The Federal Home Loan
Mortgage Corp reported that the na
tional average commitment rate for
30-year, conventional, fixed-rate
mortgages was 8.00 percent in Janu
ary, down from 8.21 percent the pre
vious month, and down from 8.43
percent in January 1992.
NAR is predicting that mortgage
rates will keep declining, due to the
Clintonadministration’sfocusonlow-
cring the national deficit and long-
range economic growth measures.
“President Clinton's attack on the
deficit w ill yield lower interest rates,
which will ensure the continued rally
in the housing market,” Chee said
Last month’s national median
existing single-family home price was
$103,700, which was 1.6 percent
higher than one year earlier, when
the price was $102,100. The median
is the midpoint in the price range-
half the homes sold cost more, half
cost less. The year-to-year price in
crease reflects steady demand. Chee
noted.
The total number of existing
single-family home sales in 1992 was
revised to 3.52 million—the highest
yearly total since 1979, when 3.83
million homes were sold.
All the regions recorded year-to-
year increases in home sales for Janu
ary. In the Northeast, the pace for
January was 600,000 units, up an
extraordinary 25.0 percent from Janu
ary 1992. The median price for exist
ing single-family homes in the North
east was $134,400 last month, down
4.2 percent from one year earlier.
According to NAR Chief Econo
mist John A. Tuccillo, the Northeast's
economy is starting to regain mo
mentum. Much of the activity there
is due to purchases at the lower end of
the price range, he noted. “Buyers
who were priced out a few years ago
are finding they can afford tobe in the
market now,” he said.
An ample supply of affordable
housing resulted in year-to-year sales
increases for both the midwest and
South The resale rate in the Midwest
was 1.01 million units in January,
which was up 11.0 percent from one
year earlier. The median existing-
home price in the Midwest was
$82,600, up 3.8 percent from Janu
ary 1992.
The South posted a resale rate of
I. 36 million units in January, up
15.3 percent from the January 1992
pace. The region’s median price was
$90,400 last month, up 1.3 percent
from one year earlier.
Despite lackluster economic con
ditions and unseasonably bad weather
in California, home sales were strong
in the West. The resale rate for that
region was 810,000 units in January,
II. 0 percent above that for January
1992. The median price in the West
was $143,300 last month, down 4.2
percent from January 1992.
Accordingto Tuccillo, “the stage
is set” for a very healthy year in the
housing industry. “All the factors are
in place—low rates, stable home
prices, and willing consumers,” he
said.
Currently, NAR is predicting
existing single-family home sales to
total 3.69 million units this year,
representing a 4.9 percent increase
from Ihe 1992 total. The median
price for existing single-family homes
is expected to be $106,900, rising 3.1
percent above the price for last year.
Bank Of America Announces
Grants To Five Northeast
Portland Projects
Five non-profit organizations
serving North and Northeast Portland
have received grants totaling $42,500
from the BankAmerica Foundation.
The grants include:
• $20,000 to the Providence Child
Care Center for its Children’s Nurs
ing Center
• $ 15,000 to the Portland Hous
ing Center supporting continued ef
forts to promote affordable housing in
lower-income neighborhoods.
• $2,500 to Housing Our Families
to support efforts to provide safe and
affordable housing for women and
their families.
• $2,500 to Habitat for Humanity
toward rehabilitation of homes in the
Vernon Neighborhood
• $2,500 to the G arlington
Mental Health Center for the pur
chase of childrens toys, art supplies,
books, tables and chairs, and equip
ment.
“We view these contributions as
an investment in the community,”
said Rich Brown, vice president of
Corporate Community Development
for Bank of America Oregon. “In
making these grants, we commend
the tremendous efforts of each of these
To Train Applicators
(Under Supervision-
Fully Guaranteed)
To Install
NEW 1993
Vinyl Siding
Financing
O.A.C.
The foundation funds private, non
profit, tax-exempt organizations en
gaged in health and human services,
education, conserv ation and the envi
ronment, community investment and
the arts.
/ f y o u 'v e a l w a y s h a d t h e d r e a m
o f o w n in g y o u r o w n h o m e , y o u r
d re a m
m a y h a v e ju s t c o m e t r u e .
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MAIL COUPON OR CALL,
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3511 N.E. 74th Portland, OR 97213 •
F o r a s l i t t l e a s y o u 'r e p a y i n g in
ANDERSON BUILDERS & I
CONSTRUCTION, INC. ?
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(503) 281-1855
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m o n th ly r e n t a n d a m o d e s t d o w n
p a y m e n t , y o u c o u ld b u y a M U D M o m e . T h a t s r ig h t . T h e
U S
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organizations are making to create a
stronger and richer community for us
all.”
BankAmerica Foundation, estab
lished in 1968, is the philanthropic
arm of BankAmerica Corporation.
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