Real Estate

When China releases its third-quarter gross domestic product figures Thursday, it's likely to post growth that's the envy of a recession-weary globe. Some analysts project the world's third-largest economy will easily surpass the government's 8% expansion target. China's exports are rebounding. Tens of thousands of laid-off workers are being rehired. Stocks and real estate have been on a tear. Though economists credit Beijing's policies for carrying the country through the worst of the global crisis, some question the sustainability of the recovery.

The confident smile Sam Rivero wore as he hunted for his first house had a lot to do with the buzz thumping in his ears. Ever since home values began sinking, pundits have touted the juicy opportunities for aspiring buyers priced out of the market before, and the young business-development executive heard that cue like a sonic boom.

Despite carnage on Wall Street, vacant storefronts on Madison Avenue and pricey restaurants offering "grill menus" (read: cheap burgers), some things remain unchanged in the great metropolis. The price of the average Manhattan apartment is still hovering at more than $1 million.

As a homeowner, I know it's counterproductive to take delight in the real estate misfortunes of my neighbors. But massive price reductions on a house down the street from me have left a lot of us in the neighborhood gloating. A hulking McMonstrosity that's jaw-droppingly out of place among the modest bungalows that surround it, the house was clearly intended by its owner/builder to be a cash cow.

California Atty. Gen. Jerry Brown today increased the heat on businesses that prey on struggling homeowners, ordering nearly 400 mortgage foreclosure consultant companies to post $100,000 bonds and register with his office or risk prosecution. "The time for accountability is at hand, and this rogue industry must clean itself up or face legal action," Brown said. At a news conference in Los Angeles, Brown said he was giving the companies, which can be found on a list posted on his website, 10 days to "get their act together" or his office will take legal action.

As lawmakers look for a way out of the recession, it's worth remembering how we got into this mess in the first place. The collapse of the housing market sucked trillions of dollars worth of real estate wealth out of the economy, starting a vicious cycle of cutbacks by consumers, lenders and businesses. But the collapse wasn't a one-time event.

Roving through the halls of the Glendale Galleria one night earlier this year were about a dozen wannabe cops trying, with varying degrees of ridiculousness, to be covert. I know, because I was one of them. I was there as a student in an eight-week Citizens' Academy held by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, better known as the ATF.

When Vicky Black's one-story home in Port Richey, Fla., was on the market, prospective buyers told her they liked it. Unfortunately, they made negative comments about her neighbor's home, which has a stone lawn and little curb appeal. "They said I was the gem of the neighborhood, and it was too bad I had eyesores around me," recalled Black, who took her house off the market last year. The appearance of nearby homes absolutely influences homeowners' ability to sell, said Pat Vredevoogd Combs, former president of the National Assn.

A Beverly Hills real estate agent to the stars and an appraiser were convicted Monday on federal charges of conspiracy and bank fraud for their roles in a multimillion-dollar Westside real estate fraud ring, but jurors couldn't reach a verdict on another prominent agent accused of being part of the scheme. Real estate agent Kyle Grasso, 38, and licensed appraiser Lila Rizk, 42, were found guilty of multiple counts of conspiracy, bank fraud and loan fraud for their participation in a scheme in which banks lost more than $40 million on loans totaling $142 million.

Mollie Bell has a plan the next time a real estate infomercial flashes on her TV: She's "flipping to the cartoon channel." After being burned by a negative-amortization loan that left her owing more on her Compton home than it was worth, Bell, 62, has soured on the home-refinancing craze. Never a big spender anyway, she has clamped down even harder -- deferring painting and other repairs on her modest three-bedroom home. Sadly, she's also postponed retirement. "From top to bottom, I'm reexamining how I spent before, and am trying to save at every turn to put away 10% a year.