From: Mike Francis
[mikefrancis] Sent: Saturday, November 06,
2004 5:59 PM To:
mikefrancis Subject: Man sues after Pulte
price reductions
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Man sues after Pulte price reductions |
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| By Jennifer Shubinski |
November 5th 2004 | |
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Friday
A California man who bought more than $1.5 million worth of Del Webb
homes -- but says he has an income of $30,000 a year -- has sued the
company alleging breach of contract after it lowered home prices
throughout Las Vegas.
The suit also names Countrywide Home Loans, alleging fraudulent
lending practices.  Presented by Mike Francis
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Pulte Reduction Finds Trouble |
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Igor Doncov, a resident of San Mateo County, Calif., alleges in the
lawsuit that because Pulte Homes, the parent company of Del Webb,
drastically cut home prices at the end of September, it "created an
instant loss of over $100,000" on four of the Del Webb properties he
owned.
That reduction, according to the lawsuit, caused Doncov to be unable to
sell two of the homes he already closed on at the time the lawsuit was
filed last month. Two other homes were in escrow.
At the end of September, Pulte reduced prices at its four Las Vegas Del
Webb communities between 5 percent and 25 percent, or $50,000 to almost
$160,000. Pulte also reduced prices in 18 of its 23 Pulte Home
communities, with reductions ranging from $25,000 to $170,000. Pulte Homes
blamed the reductions on a slowdown in demand and an over- aggressive
pricing strategy.
Sheryl Palmer, Nevada area president of Pulte Homes, said she believes
the company is close to a resolution with Doncov. Palmer said she could
not disclose any details of the possible resolution.

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Housing affordability sinks in Q3 |
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CHICAGO (CBS.MW) -- U.S. homebuyers found it more difficult to come
up with the money for their house purchases in the third quarter, although
housing affordability remained historically high in the period, the
National Association of Realtors said Monday.
The NAR's composite housing affordability index was 128.6 during the
third quarter of 2004, down 3.7 percentage points from 132.3 in the second
quarter; it was 7.6 points below the same period a year earlier when it
stood at 136.2.
The decline was blamed on rising home prices. Still, the index shows
the nation's typical household could afford to buy a home costing
$242,400, well above the national median existing-home price in the third
quarter, which was $188,500. That's up about 6.5 percent from the median
of $176,900 in the third quarter of 2003.
"Any index reading over 100 is considered sufficient for the nation as
a whole and we remain in pretty good shape," said David Lereah, NAR's
chief economist.

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Today's Rates |
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Average mortgage rates rise in latest week: Freddie Mac (FRE) By
Rachel Koning
CHICAGO (CBS.MW) -- The average 30-year fixed- rate mortgage averaged
5.70 percent for the week ending Nov. 4, up from last week when it
averaged 5.64 percent, Freddie Mac said Thursday. The average for the
15-year FRM this week is 5.08 percent, up from last week when it averaged
5.01 percent. One-year, Treasury-indexed adjustable-rate mortgages, or
ARMs, averaged 4.00 percent this week, up from last week's 3.96 percent.
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