Match Game: The sequel

Back in January, we used past and present headlines to create this post, which pointed out that today's issues tend to have parallels to the 1990s downturn that plagued the area. Now, we're back with some more examples of stories from the present, and how they link up with the past - specifically, early-to-mid 1991 (and one story from 1992). Enjoy...

Today's story: NAR public awareness campaign - Good Time to Buy
Date: Ongoing
"Many real estate markets across the country have recently experienced rising home inventories and stabilizing prices. In these markets, home buyers have increased negotiating power, but may be unsure of how to structure the best deal – they need a professional to help guide them through the transaction. 'Good Time to Buy' emphasizes the value that REALTORS® bring to home buyers in this environment. Of course, every market is different, which is why the ads recommend that potential home buyers call a REALTOR® in their local market to learn more about what’s happening with real estate in his or her community."

Yesterday's story: Making the best of it
Date: Feb. 13, 1991
"Coldwell Banker Residential Group, the Mission Viejo-based real estate giant, will begin a groundbreaking national advertising campaign this week that acknowledges the sluggishness of the current housing market while suggesting that there's never been a better time to buy or sell. While many advertising and real estate experts agree with the campaign's central theme -- 'Now's the time to make your move' -- some consider the campaign risky because it's pegged to what might be a temporary market condition and it might generate business for Coldwell Banker's competitors."

The connection: Whenever conditions exist that may threaten a group's business, they rush to convince the public that, contrary to what many think, real estate is still a great buy - and it's important to utilize their expertise to do so.

Today's story: No relief on mortgage rates this week
Date: March 6, 2008
"Homeowners and would-be buyers hoping to take advantage of lower mortgage rates were disappointed –again — this week. Orange County mortgage rates climbed for the fourth week in a row." Conforming rate: 5.929%. Jumbo: 6.983%

Yesterday's story: Home mortgages get more expensive
Date: March 7, 1992
"One-year start rates for adjustable home loans averaged 5.764 percent March 5, up from the 5.398 percent average Feb. 28. The average fixed-rate loan jumped to 8.829 percent, up from 8.720 percent."

The connection: As always, financing plays a crucial role in the home buying process. If mortgage rates rise, it is more difficult for borrowers to afford properties.

Today's story: Downey Financial swings to a loss
"Downey Financial in Newport Beach said today it lost $56.6 million in 2007, which compares to a profit of $199.7 million the prior year...The big culprit: a $283.5 million addition to loan loss reserves, which dings earnings. And the lender suffered from a $94.8 million drop, or 18.3%, in net interest income due to a drop in assets that earn interest and a lower interest-rate spread."
Date: Jan. 23, 2008


Yesterday's story: Downey Savings sells properties at a loss
Date: Feb. 13, 1991
"Downey Savings and Loan Association said Tuesday that it generated $10.2 million in the fourth quarter by selling off troubled real estate properties originally valued at $42.2 million...However, the lender said it still owns substantial amounts of real estate, much of which it already has recorded as a loss."

The connection: When things go bad, local companies that invested heavily in local real estate or made lots of loans can get burned.

Today's story: O.C. home reportedly goes for record $35 million
Date: Jan. 11, 2008
"Nicolas Cage sold his Newport Beach, Calif., house last week for $35 million — a new record for Orange County, local brokers say. The movie star, who has bought and sold many houses, paid $25 million for the nearly 0.6-acre property in 2005."

Yesterday's story: Home's record-setting sale has OC agents optimistic
Date: Feb. 5, 1991
"Whether it'll kick off a new frenzy of trophy-house buying is debatable, but a few real estate agents are happy that a price record has been set in Orange County's housing market."

The connection: No matter how bad things may be for virtually everyone, excessively rich people still have loads of dough and can buy really expensive stuff whenever they darn well please.

Today's story: Home buyer who overpaid sues real estate agent
Date: Jan. 25, 2008
"Legal and real estate experts say that Ummel and her husband, Vernon Ummel, should have done their homework better before purchasing their four-bedroom home in a luxury development outside of San Diego in 2005 for $1.2 million, a price that the Ummels say was as much as $175,000 more than what similar houses in the development sold for. They contend it was not their fault."

Yesterday's story: More buyers unhappy with agents
Date: June 10, 1991
"In the past two years the action in Orange County's housing market has shifted from writhing disco to ballroom dance. Now it looks like real estate agents are getting the rap. In a survey of home-shopper attitudes conducted in April for The Orange County Register, nearly 46 percent of the respondents who bought a house in the past year said they wouldn't use the same agent again."

The connection: Mad about a poor home purchase decision? Duh - blame anyone else but yourself...starting with your real estate agent!