Eurozone slips back into recession

Protesters hold placards reading "Stop evictions" as they attend a demonstration during a general strike in Valencia, Spain. (Jose Jordan, AFP/Getty Images / November 14, 2012)

By Tiffany Hsu, Los Angeles Times

November 15, 2012, 4:03 p.m.

The Eurozone is back in a recession, its first in three years, as gross domestic product for the debt-plagued 17-nation bloc contracted 0.1% in the third quarter from the earlier quarter.

Two consecutive quarterly slips make a recession — in the second quarter, the currency collective tightened 0.2%, according to the official European Union statistics agency Eurostat. Compared with the third quarter last year, the Eurozone's GDP was down 0.6%.

It's one more piece of bad economic news for the Eurozone. Eurostat said last month that unemployment in the bloc was at a record high of 11.6%. Protests and strikes rippled across Europe on Wednesday.

Growth in core countries such as Germany and France couldn't counteract the plunges in long-struggling, austerity-bound nations such as Spain and Italy. Portugal took an especially nasty 0.8% dive.

Even countries that had been expanding took a dive, with the Netherlands experiencing a 1.1% squeeze and Austria contracting 0.1%. Germany's growth slowed to 0.2% in the third quarter from 0.3% in the second.

France, however, reversed a string of flat or down quarters with a 0.2% expansion.

The wider, 27-member European Union escaped recession, its GDP advancing 0.1% in the third quarter after tightening 0.2% in the second. In Britain, fresh off the Summer Olympics, the economy boomed 1% after a 0.4% drop.

A separate Eurostat report Thursday showed annual inflation in the euro-currency area down to 2.5% in October, from 2.6% the previous month.

In a speech Thursday, European Central Bank President Mario Draghi urged governments to avoid tax hikes in favor of spending cuts as a strategy for fiscal consolidation. He also stressed the need for "calm pragmatism" going forward.

"It is essential that all parties involved in Europe's large and complex path of reforms stick to their commitments," Draghi said.

tiffany.hsu@latimes.com

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October home sales hit 3-year high; prices up 17% year over year

Consumer columnist David Lazarus talks with real estate reporter Alejandro Lazo, DataQuick analyst Andrew LePage and Bill McBride of the Calculated Risk blog about the strong October real estate numbers.

Southern California's real estate market bucked the typical fall slowdown last month, with buyers snapping up pricier homes and sales roaring up 18% over the prior month.

Sales hit a three-year high for an October, rising 25% from the same month last year. The median sale price for a Southland house last month was $315,000, equal to September and up 17% from October 2011, according to real estate research firm DataQuick.

A decline in the number of foreclosed homes has caused a shortage of inventory in entry-level neighborhoods, pushing up home prices. Demand from investors also remains strong, with these buyers snapping up a near-record level of homes last month.

"There is a growing appreciation of the fact that we've come to a sort of a point of inflection in the housing market," Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, said. "The housing market, for a large number of factors, is perceived as having turned a corner."

The region's median hit bottom at $247,000 in April 2009 and has slowly crawled its way up since. The median is the point at which half the homes in the area sold for more and half for less.

Quiz: Test your knowledge of business news

The rebound stems from more people chasing fewer homes. Interest rates remain near record-low levels, luring buyers. Investors with cash have poured into the market looking for cheap properties to flip or rent. And foreclosure resales have sunk to a five-year low, tightening the supply of cheap homes.

An estimated 21,075 newly built and previously owned houses and condominiums sold throughout the region last month. Coastal markets saw the biggest increases in sales — though every county posted double-digit gains compared with October last year. Orange County saw the biggest surge, with sales up 41%. Ventura rose 35%, San Diego, 31%, Los Angeles, 25%, San Bernardino, 18% and Riverside 13%.

Absentee buyers — investors and some second-home buyers — snapped up a near-record 28% of homes throughout the Southland last month. These investors paid a median $245,000, a 23% increase from October last year.

A recent report by real estate website Zillow showed that many investors and others are paying market value for foreclosed homes in the region, erasing the discount between foreclosed homes and regular properties. Discounts were marginal on bank-owned homes in September, with the discount in the Inland Empire just 2% and in the Los Angeles area 4% in September, Zillow said.

Bruce Norris, president of Norris Group, an investment company in Riverside that buys foreclosed homes, said he expects prices to increase in coming years as the Obama administration has encouraged banks to curtail foreclosures. That will push up prices, he said.

"It is policy driven," Norris said. "Since the policy is going to continue … you are about to see a pretty substantial price increase within the next two years."

Indeed, the high level of affordability ushered in by the housing crash could erode quickly in California. This week the California Assn. of Realtors reported that homes in the state are getting less affordable as property values rise. The group estimated that 49% of home buyers in the third quarter could afford a median-priced house in California, a decline from 51% last quarter. The rise in prices is offsetting the benefit to home shoppers from low mortgage interest rates.

Christopher Thornberg, a principal at Beacon Economics and one of the first to call attention to the housing bubble, said home shoppers should expect expensive housing in the Golden State for the foreseeable future. The reason: Construction of new homes remains highly expensive for builders.

"Why would it stop?" he said. "The economy is growing. Short of a fiscally led second recession, there is no reason in the world that it's going to do anything but to continue."

The region's lowest-cost areas — often those the most starved for inventory these days — posted the weakest sales numbers last month, according to DataQuick. The number of homes that sold below $200,000 in the region dropped 11% from October last year. Sales in these markets have slowed because of the drop in foreclosures, while increased demand has pushed up prices.

Sales of previously foreclosed-upon homes made up just 16% of the resale market last month, a drop from 17% last month and 33% in October 2011. Foreclosure resales peaked at 57% in February 2009.

In the meantime, sales surged in several mid- and higher-cost neighborhoods throughout Southern California in October, DataQuick said. Sales of homes between $300,000 and $800,000 increased 42% year over year. Sales of homes costing more than $500,000 were up 55% and sales of homes more than $800,000 rose 52%.

Bill McBride, lead writer for the housing blog Calculated Risk, said that with the upswing in prices homeowners are encouraged to keep their homes off the market.

"Why is there no inventory? I ask every real estate agent that, just to hear what they tell me. And they say people don't have enough equity in their homes and so they aren't listing them," McBride said. "That is a solid argument. But I also think the people are sensing that prices are going up and there is no urgency to sell."

alejandro.lazo@latimes.com

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Shania Twain makes horseback arrival for Vegas gig

LAS VEGAS (AP) — Country music star Shania Twain arrived on horseback Wednesday for a two-year headline gig at Caesars Palace, parading up the Las Vegas Strip with a herd of 40 horses.

Promoters called the event a stampede, but hooves were kept to a steady, slow gait by nine wranglers who escorted Twain to a reception crowd of several hundred people in front of the famous Caesars fountains. Dozens more people watched from the sidewalk of the Flamingo resort across Las Vegas Boulevard.

"We could either lose a few hundred dollars inside or come out and see what kind of spectacle she puts on," said Steve Huffman, a UPS manager from Charleston, W.Va., who watched with his wife, Debi, from an overhead pedestrian walkway.

The couple was in town for his 52nd birthday and learned through a Twitter message that Twain planned to arrive on a horse. They identified Twain's hit, "Man, I Feel Like a Woman," as the country singer rode up the street, and they said they'll plan to see the show next year.

"Still The One" blasted on speakers as Twain stepped onto a temporary outdoor stage near fountains made famous by events including daredevil Evel Knievel's motorcycle crash during a stunt on New Year's Eve 1967.

To some, Twain's arrival echoed singer Frank Sinatra's heralded arrival on a camel at the old Dunes hotel in September 1955.

Twain's show titled "Shania: Still the One" opens Dec. 1 at the nearly 4,300-seat Colosseum at Caesars Palace. The venue also hosts entertainers Celine Dion, Elton John, Jerry Seinfeld and others.

Twain, 47, is touted as one of the best-selling female country artists of all time. The Canadian singer-songwriter has sold more than 75 million albums worldwide.

Las Vegas police, including several on horseback, diverted traffic on the busy casino corridor for about 30 minutes for the spectacle.

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Recurring Lyme Disease Symptoms Caused by New Infection, Study Finds

When people who have been treated for Lyme disease recover but later come down with its symptoms again, is the illness a relapse or a new infection?

The question has lingered for years. Now, a new study finds that repeat symptoms are from new infections, not from relapses.

The results challenge the notion, strongly held by some patients and advocacy groups, that Lyme disease, a bacterial infection, has a tendency to resist the usual antibiotic treatment and turn into a chronic illness that requires months or even years of antibiotic therapy.

The conclusion that new symptoms come from new infections is based on genetically fingerprinting the Lyme bacteria in people who have had the illness more than once, and finding that the fingerprints do not match. The result means that different episodes of Lyme in each patient were caused by different strains of the bacteria, and could not have been relapses.

The study, by researchers at the University of Pennsylvania and New York Medical College, in Valhalla, was published online on Wednesday in The New England Journal of Medicine.

An estimated 20,000 to 30,000 cases of Lyme disease occur each year in the United States. The disease is caused by a bacterium, Borrelia burgdorferi, that is carried by deer ticks. It often begins with an expanding zone of red skin — a symptom called erythema migrans — around the tick bite, but sometimes in other areas too. Fever, headaches, fatigue and aches and pains often follow.

Untreated, the disease can cause heart and neurological problems and arthritis, with symptoms that can come and go for years. Advanced cases that have gone months or years before being treated are most likely to result in persistent arthritis.

But when the disease is detected earlier, treatment with an antibiotic, usually two to four weeks of doxycycline, can get rid of the bacteria, according to infectious disease experts. Even advanced cases can be cleared by the drugs, doctors say, though an extra month or so of treatment may be needed. Symptoms like pain and fatigue can linger even after the bacteria are gone, possibly because the infection caused abnormalities in the immune system.

However, some doctors, patients and advocacy groups think that the bacteria themselves can somehow hang on despite treatment, even in cases caught early, and cause a chronic infection that requires long-term treatment with antibiotics. In some cases, people with unexplained pain, fatigue and cognitive problems have been told they had chronic Lyme disease even though blood tests found no evidence of the infection.

Several controlled studies have found that long-term antibiotics did not help people who had already been treated for Lyme disease but had such lingering problems.

Despite the data, the belief has hung on that Lyme disease bacteria can cause a chronic infection even after treatment.

The researchers who conducted the new study wanted to test that idea by finding out whether people who had repeated bouts of the disease were actually having relapses. They identified 17 patients who had erythema migrans — the rash — more than once between 1991 and 2011. Most had it twice, at least a year apart, but a few patients had it three times and one had four cases. Many had other symptoms as well, and more than half had signs of widespread systemic infection. All were treated, and recovered fully.

Lyme bacteria were grown from skin or blood samples taken from the patients when they had the rash, and the researchers analyzed a bacterial gene that varies from one strain to another. For each patient, they compared the genes from different cases of the rash. The genotypes did not match, which the researchers said proved that each rash represented a new infection, not a relapse.

In an editorial accompanying the article, Dr. Allen C. Steere, a Harvard professor who was the first to identify Lyme disease, said the new study supported previous research suggesting that new infections, not relapses, were the cause of new symptoms in people who had taken antibiotics to treat earlier cases of the disease.

Dr. Steere acknowledged that symptoms, sometimes disabling ones, do linger for months after treatment in as many as 10 percent of patients. Doctors do not know why. But, Dr. Steere said, “antibiotics are not the answer.”

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FCC media ownership survey reveals lack of diversity

The FCC, headed by Julius Genachowski, released results of a media ownership survey. (Bloomberg / November 14, 2012)

Bill O'Reilly can breathe a little easier.

Last week while speaking about the reelection of President Obama, the Fox News commentator said, "The white establishment is now the minority." 

But when it comes to who owns the nation's TV and radio stations, whites -- and white males in particular -- are still the majority.

The Federal Communications Commission just released its report on the ownership of commercial broadcast stations which reveals that as of 2011, whites own 69.4% of the nation's 1,348 television stations. That's up from 63.4% in 2009, when there were 1,187 stations. 

While white ownership increased, most minority ownership decreased. Blacks went from owning 1% of all commercial TV stations in 2009 to just 0.7% in 2011. Asian ownership slipped from 0.8% in 2009 to 0.5% last year. Latino ownership increased slightly from 2.5% to 2.9%.

Females owned 6.8% of all commercial TV stations in 2011, compared to 5.6% in 2009.

It is a similar story in radio. Whites own almost 80% of all AM and FM radio stations, with more than 70% being owned by men.

Media watchdog group Free Press said the data indicate that ownership of "broadcast radio and television stations by women and minorities remains at abysmally low levels."

The report comes at a time when the FCC is considering further deregulation of its media ownership rules, which many fear could lead to even less diversity of ownership.

ALSO:

FCC appears likely to ease media ownership rules

Former lobbyist Preston Padden looking for spectrum sellers

Follow Joe Flint on Twitter @JBFlint.

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Kupchak: If Phil Jackson hadn't hesitated he might be Lakers coach

History could have been different if Phil Jackson had said he was ready to coach the Lakers while meeting informally with two team executives on Saturday morning.

He might be the Lakers' coach right now, Lakers General Manager Mitch Kupchak said Tuesday.

"We would have gone back immediately and gone back and holed up with Dr. [Jerry] Buss and decided what we were going to do that day," Kupchak said.

Instead, Jackson asked Kupchak and team executive Jim Buss for two more days to think about a return after an 18-month layoff. The Lakers waited about 30 hours, didn't hear from him, and decided to hire Mike D'Antoni on Sunday night.

"There was no agreement to wait for [Jackson's] response on Monday," Kupchak said. "He told us that's when he would get back to us. I could see where he might interpret that as 'You guys would wait for me.' But I thought when I said I had to go on and interview other candidates that it was clear I had a job to do."

The Lakers interviewed D'Antoni by phone Saturday afternoon not long after meeting with Jackson at his Playa del Rey home. D'Antoni could not fly to Los Angeles last weekend because of recent knee-replacement surgery.

The Lakers hired D'Antoni mainly because of his high-flying offense. "He plays the way we see our team playing and our personnel executing," Kupchak said.

Kupchak himself wasn't sold on meshing Jackson's share-the-ball triangle offense with the Lakers' present-day roster. "I know the triangle," he said. "Obviously I wasn't convinced."

The Lakers decided to hire D'Antoni at 6 p.m. Sunday, half an hour before they tipped off against Sacramento at Staples Center.

Negotiations took some time, and then an unexpected electronic gaffe delayed the process once the sides agreed to a three-year, $12-million contact with a team option for a fourth year.

D'Antoni's fax machine was not working properly and could not transmit his signed contract back to the Lakers, according to a team spokesman. Finally, by 11:30 p.m. Sunday, the Lakers officially had a new coach, hiring D'Antoni despite the "We Want Phil!" chants by Lakers fans at Staples Center.

Kupchak acknowledged the "groundswell of support" for Jackson, who had the popular vote from the fans and received positive reviews from Kobe Bryant, Steve Nash and Dwight Howard, though Bryant and Nash also endorsed D'Antoni.

"There was a lot of pressure to seriously consider bringing Phil back," Kupchak said. "We sorted through the PR backlash and decided that we ultimately could withstand it."

They still had to withstand one other thing. They had to call Jackson on Sunday near midnight. He was sleeping.

"In those kind of situations, there's not a lot of small talk," Kupchak said. "He was very complimentary of Mike under the circumstances. I just told him . . . that we just felt the present makeup of the team and the kind of basketball we wanted to play going forward, we just felt that Mike D'Antoni was the choice.

"I didn't look forward to calling somebody at midnight to tell him that he's not going to get a job that he might or might not accept," Kupchak said. "But the only other thing I could do was wait until Monday morning and that would have been worse."

Jackson told The Times on Monday that the midnight phone call seemed "slimy."

"I wish it would have been a little bit cleaner," he said. "It would have been much more circumspect and respectful of everybody that's involved. It seemed slimy to be awoken with this kind of news. It's just weird."

Kupchak confirmed what was already stated by Jackson to The Times — salary wasn't discussed in their Saturday morning meeting. Neither was the concept of Jackson missing games on the road.

Jackson told Jim Buss and Kupchak he wanted the same communication between them on personnel decisions that he held in his second tenure with the team from 2005-11.

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RIM sees BB10 devices in stores soon after launch

WATERLOO, Ontario (Reuters) – Research In Motion is confident its new BlackBerry 10 devices will be 100 percent ready for the January 30 launch and available in stores “not too long after” that, Chief Operating Officer Kristian Tear said on Tuesday.

“We’re working hard right now to make sure all the bits and pieces and all the details are in place for the date, when the devices will be available for consumers and enterprises,” Tear told Reuters in an interview.

RIM, which virtually invented the concept of mobile email with its first line of BlackBerry devices more than a decade ago, was roundly criticized for the botched 2011 launch of its PlayBook tablet computer, which RIM had hoped would compete with Apple’s blockbuster iPad.

The PlayBook looked pretty and had top-of-the-line hardware. But its software was far from complete at the launch and needed multiple updates.

The device also lacked the library of apps available on the iPad and on devices that run on Google Inc’s competing Android operating system.

RIM says its the new devices will be faster and smoother than its existing phones and have a large catalog of applications that are crucial to the success of any smartphone.

The company hopes the new devices will allow it to claw back some of the market share it has lost to Android and Apple phones.

Tear said RIM has used input from current BlackBerry users to influence the design of the new devices, The new phones both build on the strengths of RIM’s existing operating system and improve on its weak points, he said.

RIM last month began carrier testing on the new devices, with an initial rollout to more than 50 carriers. Tear, who joined RIM a few months ago from Sony Mobile Communications, said RIM was expanding that to a wider group of carriers across the globe.

“We submitted to 50 carriers to begin with, and obviously that number is increasing as we move forward,” he said. “Our ambition is to make this a global launch, everything will not happen at the same time, but it will be a global launch.”

RIM has said it initially plans to roll out a high-end touchscreen version of the device. Phones with the mini QWERTY keyboards that many long-time BlackBerry users adore will come a few weeks later, while lower-end versions of both devices will be launched later in the year.

The company has yet to say exactly when the devices will be available in stores worldwide or how much they will cost.

“We have to agree with carriers as well on what they want to announce when, so it’s not absolutely to our own discretion,” Tear said.

COST CUTTING

RIM, whose share price has fallen more than 90 percent from a 2008 peak around $ 148, is part way through a major restructuring, as it seeks to trim costs in the run-up to the launch of the new devices.

The company, which has also said it is examining its strategic options, is lowering operating costs by about $ 1 billion and cutting about 5,000 jobs, or about 30 percent of its workforce, by the time its fiscal year ends in early March.

“We are on track to deliver on that,” said Tear. “It is an ongoing process, when it comes to efficiencies and costs.”

RIM’s Chief Legal Officer Steve Zipperstein said the company is pushing ahead with its strategic review.

“The process is ongoing and it continues to be a focus on RIM’s senior management, but we have nothing to report at this moment,” said Zipperstein.

RIM shares, which have risen slightly over the last couple of months in the run-up to the launch of BB10 devices, closed 4.7 percent lower at $ 8.40 on Nasdaq. RIM’s Toronto-listed shares fell by a similar margin to C$ 8.40.

(Reporting by Euan Rocha; Editing by Janet Guttsman, Leslie Adler and Tim Dobbyn)

Gadgets News Headlines – Yahoo! News

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is "relieved that this painful allegation has been put to rest." He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces "Sesame Street" in New York, soon followed by saying, "We are happy that Kevin can move on from this unfortunate episode."

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from "Sesame Street" in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop "to deal with this false and defamatory allegation."

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of "Sesame Street."

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, "My Life as a Furry Red Monster," and he was the subject of the 2011 documentary "Being Elmo: A Puppeteer's Journey."

He has won 23 daytime Emmy awards and one prime-time Emmy.

___

Online:

http://www.sesamestreet.org

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Kidney Donors Given Mandatory Safeguards

ST. LOUIS — Addressing long-held concerns about whether organ donors have adequate protections, the country’s transplant regulators acted late Monday to require that hospitals thoroughly inform living kidney donors of the risks they face, fully evaluate their medical and psychological suitability, and then track their health for two years after donation.

Enactment of the policies by the United Network for Organ Sharing, which manages the transplant system under a federal contract, followed six years of halting development and debate.

Meeting at a St. Louis hotel, the group’s board voted to establish uniform minimum standards for a field long regarded as a medical and ethical Wild West. The organ network, whose initial purpose was to oversee donation from people who had just died, has struggled at times to keep pace with rapid developments in donations from the living.

“There is no question that this is a major development in living donor protection,” said Dr. Christie P. Thomas, a nephrologist at the University of Iowa and the chairman of the network’s living donor committee.

Yet some donor advocates complained that the measures did not go far enough, and argued that the organ network, in its mission to encourage transplants, has a conflict of interest when it comes to safeguarding donors.

Three years ago, the network issued some of the same policies as voluntary guidelines, only to have the Department of Health and Human Services insist they be made mandatory.

Although long-term data on the subject is scarce, few living kidney donors are thought to suffer lasting physical or psychological effects. Kidney donations, known as nephrectomies, are typically done laparoscopically these days through a series of small incisions. The typical patient may spend only a few nights in a hospital and feel largely recovered after several months.

Kidneys are by far the most transplanted organs, and there have been nearly as many living donors as deceased ones over the last decade. What data is available suggests that those with one kidney typically live as long as those with two, and that the risk of a donor dying during the procedure is roughly 3 in 10,000.

But kidney transplants, like all surgery, can sometimes end in catastrophe.

In May at Montefiore Medical Center in the Bronx, a 41-year-old mother of three died when her aorta was accidentally cut during surgery to donate a kidney to her brother. In other recent isolated cases, patients have received donor kidneys infected with undetected H.I.V. or hepatitis C.

Less clear are any longer-term effects on donors. Research conducted by the United Network for Organ Sharing shows that of roughly 70,000 people who donated kidneys between late 1999 and early 2011, 27 died within two years of medical causes that may — or may not — have been related to donation. For a small number of donors, their remaining kidney failed, and they required dialysis or a transplant.

The number of living donors — 5,770 in 2011 — has dropped 10 percent over the last two years, possibly because the struggling economy has made it difficult for prospective donors to take time off from work to recuperate. With the national kidney waiting list now stretching past 94,000 people, and thousands on the list dying each year, transplant officials have said they must improve confidence in the system so more people will donate.

The average age of donors has been rising, posing additional medical risks. And new ethical questions have been raised by the emergence of paired kidney exchanges and transplant chains started by good Samaritans who give an organ to a stranger.

Brad Kornfeld, who donated a kidney to his father in 2004, told the board that it had been impossible to find good information about what to expect, leaving him to search for answers on unreliable Internet chat rooms. He said he had almost backed out.

“If information is power,” said Mr. Kornfeld, a Coloradan who serves on the living donor committee, “the lack of information is crippling.”

Under the policies approved this week, the organ network will require hospitals to collect medical data, including laboratory test results, on most living donors to study lasting effects. Results must be reported at six months, one year and two years.

Similar regulations have been in place since 2000, but they did not require blood and urine testing, and hospitals were allowed to report donors who could not be found as simply lost.

That happened often. In recent years, hospitals have submitted basic clinical information — like whether donors were alive or dead — for only 65 percent of donors and lab data for fewer than 40 percent, according to the organ network. Although the network holds the authority, no hospital has ever been seriously sanctioned for noncompliance.

“It’s time we put some teeth into our policy,” said Jill McMaster, a board member from Tennessee.

By 2015, transplant programs will have to report thorough clinical information on at least 80 percent of donors and lab results on at least 70 percent. The requirements phase in at lower levels for the next two years.

Dr. Stuart M. Flechner of the Cleveland Clinic, the chairman of a coalition of medical societies that made recommendations to the organ network, said 9 of 10 hospitals would currently not meet the new requirement.

Donna Luebke, a kidney donor from Ohio who once served on the organ network’s board, said the new standards would matter only if enforcement were more rigorous. She noted that the organization was dominated by transplant doctors: “UNOS is nothing but the foxes watching the henhouse,” she said.

Another of the new regulations prescribes in detail the medical and psychological screenings that hospitals must conduct for potential donors. It requires automatic exclusion if the potential donor has diabetes, uncontrolled hypertension or H.I.V., among other conditions.

The new policies also require that hospitals appoint an independent advocate to counsel and represent donors, and that donors receive detailed information in advance about medical, psychological and financial risks.

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October home sales hit 3-year high; prices up 17% year over year

Consumer columnist David Lazarus talks with real estate reporter Alejandro Lazo, DataQuick analyst Andrew LePage and Bill McBride of the Calculated Risk blog about the strong October real estate numbers.

Southern California's real estate market bucked the typical fall slowdown last month, with buyers snapping up pricier homes and sales roaring up 18% over the prior month.

Sales hit a three-year high for an October, rising 25% from the same month last year. The median sale price for a Southland house last month was $315,000, equal to September and up 17% from October 2011, according to real estate research firm DataQuick.

A decline in the number of foreclosed homes has caused a shortage of inventory in entry-level neighborhoods, pushing up home prices. Demand from investors also remains strong, with these buyers snapping up a near-record level of homes last month.

"There is a growing appreciation of the fact that we've come to a sort of a point of inflection in the housing market," Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, said. "The housing market, for a large number of factors, is perceived as having turned a corner."

The region's median hit bottom at $247,000 in April 2009 and has slowly crawled its way up since. The median is the point at which half the homes in the area sold for more and half for less.

Quiz: Test your knowledge of business news

The rebound stems from more people chasing fewer homes. Interest rates remain near record-low levels, luring buyers. Investors with cash have poured into the market looking for cheap properties to flip or rent. And foreclosure resales have sunk to a five-year low, tightening the supply of cheap homes.

An estimated 21,075 newly built and previously owned houses and condominiums sold throughout the region last month. Coastal markets saw the biggest increases in sales — though every county posted double-digit gains compared with October last year. Orange County saw the biggest surge, with sales up 41%. Ventura rose 35%, San Diego, 31%, Los Angeles, 25%, San Bernardino, 18% and Riverside 13%.

Absentee buyers — investors and some second-home buyers — snapped up a near-record 28% of homes throughout the Southland last month. These investors paid a median $245,000, a 23% increase from October last year.

A recent report by real estate website Zillow showed that many investors and others are paying market value for foreclosed homes in the region, erasing the discount between foreclosed homes and regular properties. Discounts were marginal on bank-owned homes in September, with the discount in the Inland Empire just 2% and in the Los Angeles area 4% in September, Zillow said.

Bruce Norris, president of Norris Group, an investment company in Riverside that buys foreclosed homes, said he expects prices to increase in coming years as the Obama administration has encouraged banks to curtail foreclosures. That will push up prices, he said.

"It is policy driven," Norris said. "Since the policy is going to continue … you are about to see a pretty substantial price increase within the next two years."

Indeed, the high level of affordability ushered in by the housing crash could erode quickly in California. This week the California Assn. of Realtors reported that homes in the state are getting less affordable as property values rise. The group estimated that 49% of home buyers in the third quarter could afford a median-priced house in California, a decline from 51% last quarter. The rise in prices is offsetting the benefit to home shoppers from low mortgage interest rates.

Christopher Thornberg, a principal at Beacon Economics and one of the first to call attention to the housing bubble, said home shoppers should expect expensive housing in the Golden State for the foreseeable future. The reason: Construction of new homes remains highly expensive for builders.

"Why would it stop?" he said. "The economy is growing. Short of a fiscally led second recession, there is no reason in the world that it's going to do anything but to continue."

The region's lowest-cost areas — often those the most starved for inventory these days — posted the weakest sales numbers last month, according to DataQuick. The number of homes that sold below $200,000 in the region dropped 11% from October last year. Sales in these markets have slowed because of the drop in foreclosures, while increased demand has pushed up prices.

Sales of previously foreclosed-upon homes made up just 16% of the resale market last month, a drop from 17% last month and 33% in October 2011. Foreclosure resales peaked at 57% in February 2009.

In the meantime, sales surged in several mid- and higher-cost neighborhoods throughout Southern California in October, DataQuick said. Sales of homes between $300,000 and $800,000 increased 42% year over year. Sales of homes costing more than $500,000 were up 55% and sales of homes more than $800,000 rose 52%.

Bill McBride, lead writer for the housing blog Calculated Risk, said that with the upswing in prices homeowners are encouraged to keep their homes off the market.

"Why is there no inventory? I ask every real estate agent that, just to hear what they tell me. And they say people don't have enough equity in their homes and so they aren't listing them," McBride said. "That is a solid argument. But I also think the people are sensing that prices are going up and there is no urgency to sell."

alejandro.lazo@latimes.com

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