Biz Break: California's weak real estate market: Cash buyers place their bets

Today: With many consumers uncertain about California realestate, the number of cash buyers rises in much of the Golden State.Plus: As Japan's nuclear power crisis intensifies, investors selloff stocks, including Yahoo. And: eBay, Apple, HP, Netflix, SiliconValley tech stocks.

Real estate update

We have two reports today showing a grim real estate market herein the Golden State:

Southern California home sales: They were at a three-year low inFebruary, according to a report today from MDA DataQuick. Sales inLos Angeles, Orange, Riverside, San Bernardino, San Diego andVentura counties were down 6.4 percent from February 2010. At$275,000, the median price was the same as a year earlier.

Cash purchases, notably, were at the highest level sinceDataQuick began keeping track of the market in 1988.

"The January and February sales data can be interesting, but wealways caution that historically they've been a poor barometer forthe rest of the year," DataQuick President John Walsh said in a newsrelease. "What the past two months do tell us is that lots of peoplehave bet, often with cash, that housing at today's prices will provea solid investment."

DataQuick typically reveals its sales data for the Bay Area acouple of days after its report for Southern California. Thecompany's data is based on transactions reported to countygovernments.

California Realtors' report: Statewide, the pace of sales inFebruary was down 4 percent from a year earlier, the CaliforniaAssociation of Realtors reported today. At $271,320, the medianresale house price fell 2.8 percent from February 2010.

The group's report is based on data from local Realtorassociations and multiple listing services.

"With continued concerns about both the economy and housingmarket, consumers remain tentative moving forward with any homebuying plans," association President Beth L. Peerce said in a newsrelease.

More real estate news: Homebuilders are slightly more optimisticabout the market than they have been in months, according to theNational Association of Home Builders.

The group's housing market index ticked up one point from themonth before to 17. It had been at 16 or below since June, aftereligibility for federal homebuyer tax credits expired. A readingbelow 50 shows pessimism in the market.

"Builders are cautiously looking forward to the spring homebuying season in hopes that improving economic conditions will helpbring more buyers to the table," Reno, Nev., homebuilder BobNielsen, the association's chairman, said in a news release."However, the same factors that have been weighing down the marketare still very much in play" -- especially competition fromforeclosures and short sales, he said.

Japan quake aftermath

As a nuclear power crisis intensified after last week's magnitude-9.0 earthquake and tsunami, Japan's Nikkei stock index plungednearly 11 percent today, according to an Associated Press report.

Investors around the world today were very worried about thetroubles in Japan. "It's a situation where you sell, and you askquestions later," Peter Cardillo, chief market economist for NewYork brokerage Avalon Partners, told AP.

Shares of Sunnyvale Internet giant Yahoo were hit especiallyhard. According to Bloomberg News, Yahoo owns about one-third ofYahoo Japan -- and gets much of its earnings from the joint venturewith wireless carrier Softbank. Yahoo stock finished regular tradingtoday at $16.33, down 98 cents, or 5.7 percent.

Federal Reserve: Here in the U.S., Fed Chairman Ben Bernanke andhis colleagues on the Federal Open Market Committee, in a regularmeeting today, decided to stay on their current course, keepingtheir key short-term interest rate near zero and going ahead withtheir plan to buy $600 billion in long-term Treasury securities bythe end of June.

In a statement today, the committee concluded that the economy"is on a firmer footing" as "household spending and businessinvestment in equipment and software continue to expand."Unemployment, though, remains high. While inflation overall is belowthe Fed's comfort level, it will "pay close attention" to higherenergy and commodity prices.

Tech headlines

eBay: The San Jose online auction house is changing its policy onlisting fees for less frequent sellers.

"We are listening to our customers and continue to tailor pricingto ensure the success of our sellers, and make eBay more convenient,accessible and relevant to their customers," Christopher Payne, eBaysenior vice president, said in a news release.

Sellers will be able to list as many as 50 items a month for free-- and add a "buy it now" option to those listings. The company isadjusting the cut it takes from transactions: Its percentage will bebased on a final price that includes shipping costs -- in an effortto encourage sellers to send items for free or at a low cost, eBayexplained.

Apple: The Cupertino company is postponing the launch of the iPad2 in Japan, according to Bloomberg News. The debut had beenscheduled for March 25.

"We are delaying the launch of the iPad 2 in Japan while thecountry and our team focuses on recovering from the recentdisaster," spokeswoman Natalie Kerris told Bloomberg. "Our hearts goout to the people of Japan, including our employees and theirfamilies who have been impacted by this terrible tragedy."

More iPad news: The new tablet computer remains in short supplyin this country, according to an analyst report today. According toan e-mail from Ticonderoga Securities analyst Brian White, someApple Store locations received limited iPad 2 shipments today, butquickly "sold out this morning" in New York and San Francisco.

Apple, though, is handing out tickets "to help people avoidwaiting in line unnecessarily," White noted.

At midday today, Apple was scheduling shipping in four to fiveweeks for online iPad 2 orders.

HP's 'cloud computing' vision

Leo Apotheker -- the new CEO of Palo Alto tech pioneer Hewlett-Packard -- detailed his strategy for the company yesterdayafternoon, offering a heavy emphasis on "cloud computing."

"We see clearly a world in which the impact of cloud andconnectivity is changing not only the user experience, but howindividuals, small businesses and enterprises will consume, deployand leverage information technology," Apotheker said, according toan HP news release. "HP is well-positioned to be the trusted leaderin addressing this opportunity."

Apotheker also said HP would include its webOS operating system(acquired in last year's purchase of Sunnyvale handheld computingpioneer Palm) in numerous devices -- including personal computersalso running Microsoft's Windows software, according to a Mercreport.

Merc columnist Chris O'Brien evaluated the former SAP CEO'spublic debut on behalf of HP. Apotheker "continued to turn the pageon the Hurd era, talking more about innovation than about cost-cutting and acquisitions," Chris wrote. "As for the vision, let'sjust say the general reaction in the press room afterward boileddown to: 'Is this it?' "

HP's shares -- along with other tech stocks -- fell today. Thestock finished regular trading at $40.93, down 56 cents, or 1.3percent.

Silicon Valley tech stocks

Netflix stock jumped higher today. According to Bloomberg News,Goldman Sachs upgraded the Los Gatos online movie pioneer's sharesto "buy" from "neutral." Netflix stock climbed $15.91, or 7.9percent, to $217.11.

However, Silicon Valley's 10 largest tech stocks by market value -- Apple, Google, Oracle, Intel, Cisco Systems, HP, eBay, VMware,Gilead Sciences and Juniper Networks -- all declined.

The tech-heavy Nasdaq composite index: Down 33.64, or 1.2percent, to 2,667.33.

The blue chip Dow Jones industrial average: Down 137.74, or 1.1percent, to 11,855.42.

And the widely watched Standard & Poor's 500 index: Down 14.52,or 1.1 percent, to 1,281.87.

Check in weekday afternoons for the 60-Second Business Break, asummary of news from Mercury News staff writers, The AssociatedPress, Bloomberg News and other wire services. Contact Frank Russellat 408-920-5876. Follow him at Twitter.com/mercspike.