Open House: Single Women Saying ‘I Do’ to Real Estate
Single women are becoming a more important segment of the home-buying market. Married couples still constitute 60% of home buyers, but that proportion has been dropping in recent years. Unmarried women accounted for 22% of sales last year, up from 14% in 1995. Single men, on the other hand, accounted for just 9% of home sales, a trend that has remained unchanged since the mid-1990s. This home-buying phenomenon is rooted in societal changes, including the fact that women are waiting longer to get married, analysts report. Experts say the trend is ripe with opportunities for condominium builders and sales agents who specialize in the smaller, low-maintenance homes that single women prefer. Builders are already targeting women when decorating many of their model homes, and Realtors® are emphasizing a neighborhood’s safety and the security of attached garages when talking with single women. (www.bendweekly.com)
Bend Weekly (3/23/07); Jim Woodward
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Foreclosure Wave Bears Down on Immigrants
Immigrants are emerging as among the first victims of a growing wave of home foreclosures in the Washington area as mortgage lending problems multiply locally and across the country. Nationally, 375,000 high-interest-rate loans were made to Hispanics in 2005, and nearly 73,000 of them are likely to go into foreclosure, said Aracely Panameno, director of Latino affairs for the Center for Responsible Lending. Homeownership rates among immigrants surged in the first half of the decade, making their prosperity an economic success story. Now it is becoming apparent that many people managed to buy homes by turning to the unusual new mortgages only now receiving scrutiny from regulators and legislators. (www.washingtonpost.com)
Washington Post (3/26/07); Kirsten Downey
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Priced Out of Paradise
Taxes on the two-bedroom Clearwater Beach, Fla. condo that Chris and Barbara Loulousis bought 28 years ago now top $8,200, up from $1,200 when they first bought, they say. Without the homestead tax exemption, which shields permanent residents from high tax increases, their taxes are likely to rise further. A recent two-part plan by the Florida House Republican leadership promises to provide some relief, but second-home owners could continue paying higher taxes. Part one would cut every home owner’s taxes by an average of 20%. Part two, a constitutional amendment on the statewide ballot, would eliminate property taxes for those who claim their home as their primary residence. If property values go up, as some economists predict will happen under the proposal, second-home owners would pay higher taxes and drastically alter Florida’s historically strong second-home market. Experts say competing states such as Tennessee, Georgia and North and South Carolina could lure second-home owners with cheaper taxes and home prices if the measure passes. (www.tampatrib.com)
Tampa Tribune (3/22/07); Shannon Behnken
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Husbands and Wives Need Rooms of Their Own
Both men and women like to have a space of their own. And it seems the longer we live with each other, the more we need it. There is a growing trend among couples in the U.S. of having separate bedrooms. It started with separate sinks in the bathroom. Next came separating the clothes into his and hers closets, then dual home offices and home studios. According to experts, one of the biggest causes of marital tension is a poor night’s sleep. Experts claim that sleeping in separate bedrooms, or at least having the option, has benefited many marriages. A recent survey by the National Association of Home Builders highlighted an increased demand for homes to be built with his and hers bedrooms. (www.abqjournal.com)
Albuquerque Journal (3/22/07); Jennifer Huard
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Housing Is Weak, But Not Collapsing
Housing is weak, but not collapsing — and some small indicators are more useful than the traditional national aggregates. Tightening credit standards are supposed to shut out hundreds of thousands of buyers. However, the Mortgage Bankers Association’s loan application count is steady and there’s no news of increased turn-downs. Lower-quality borrowers are finding substitutes for extreme subprimes. Fremont General, a subprime provider, this week dumped $4 billion of its subprime portfolio, taking a $140 million loss. In a true foreclosure meltdown — loans uncollectible — the discount would have been a lot deeper than 3.5%. (www.inman.com)
Inman News (3/23/07); Lou Barnes
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Financial Firewall? Concern Over Subprime Woes Begins to Recede
Investors in commercial mortgage securities have received a double shot of good news to offset the fear and uncertainty generated over the well-publicized financial woes of subprime lenders such as New Century Financial Corp. Not only did the Federal Reserve hold interest rates steady, including leaving the prime interest rate for commercial banks at 8.25% for the third time since August, it left open the possibility of a rate cut. The news followed a pair of reports issued by Fitch Ratings expressing guarded optimism that the subprime mortgage meltdown would likely not create undue hardship for holders of collateralized debt obligations and asset-based commercial paper. Along with commercial mortgage-backed securities, the pools make up the second-largest class of commercial mortgages, trailing only commercial banks. (www.costar.com)
CoStar Group (3/21/07); Randy Drummer
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