Later marriage trends don’t postpone homeownership

NEW YORK – April 24, 2013
A study conducted looked a changing marriage trends in America and how they impact the purchase of a first home.

According to the study, the timing of a first-home purchase hasn’t changed a lot over the years, but an upswing in later marriages means more couples are buying a home before they walk down the aisle – if they ever do – or making a purchase earlier in the marriage.

About one in four married couples between the ages of 18 to 34 purchased their first home together before their wedding date, compared to 14 percent of those ages 45 and older. According to the survey, 35 percent of all married couples purchased their first home together by their second wedding anniversary; 80 percent of these married homeowners said it strengthened their relationship more than any other purchase.

“What we’re seeing is that young couples are switching up the order and purchasing their first home regardless of whether or not they have set a wedding date,” says Dr. Robi Ludwig, a psychotherapist and lifestyle correspondent.

“This is a huge movement within the American culture,” Ludwig adds. “While younger generations may be focusing more on their career, and in turn waiting longer to get married and have children, they are not delaying their dream of homeownership.”

Other survey trends

• 17 percent of all married couples surveyed purchased a home together before their wedding day.

• 72 percent of married Americans in the South waited until after they were married to purchase a home, compared to 60 percent of Americans in the Northeast.

• Only 16 percent of married U.S. adults have not purchased a home together with their current spouse.

Ludwig says the tasks involved with a home purchase can strengthen a marriage. “(Married couples) not only learn about each other’s wishes and dreams during this process, but they also learn how to be practical with each other and compromise,” he says. “Buying a home has more of an impact on a couple’s relationship than any other purchase they will ever make.”

Impact of home buying on a marriage

• 93 percent of homeowners who purchased their first home while married always planned on owning a home after marrying.

• 80 percent said purchasing a home with their spouse did more to strengthen their relationship as a couple and family than any other purchase they have made together.

• Over one-third of married homeowners (35 percent) wish they had taken the plunge (into homeownership) sooner than they actually did.

Ludwig offers the following tips for couples buying their first home together:

1. Decide “needs” vs. “wants,” and be willing to compromise. Ludwig says it’s common for a couple to uncover conflicting values, interests, likes, dislikes and tastes to come that create tension. But no one gets everything on their checklist, so it’s important to compromise to get a home that pleases both people. Patience, understanding, compassion and compromise are key.

2. Work together to prioritize what’s important in a home. Make an independent list and compare notes. Even the closest couples are still two people with separate ideas and agendas. Searching for a home can bring up a couple’s different priorities and ideas about life. Working together to decide what is best for a combined future strengthens the bond between individuals and prepares couples to effectively deal with future disagreements.

3. Be open, honest and organized with finances. This includes the ability to talk about personal savings, debts, budgets and credit ratings. Money is one of the leading causes of marital discord.

4. Think about the future for three, five and even 10 years down the road. Before buying a home, talk about plans for careers, having a family, and what that means in terms of neighborhood and space. For some people, talking about their future needs creates anxiety. Support each other if it does.

© 2013 Florida Realtors®

Porsche Design Tower Miami opens sales center in Sunny Isles

 

A rendering of Porsche’s robotic parking garag

The Porsche Design Tower Miami has opened its sales center, Porsche Design Group and Dezer Development announced. The 60-story, 132-unit tower, which will have a robotic garage, will be located at 18555 Collins Avenue. It will launch construction in mid-2013, with move-in scheduled for 2016. The sales center will include small models of the residences, along with a video display of the parking technology. — Alexander Britell

Sky-high parking at Porsche Design tower

April 19, 2013 02:00PM                                    

Porsche Design Tower

Among the most buzzed-about amenities of the Porsche Design Tower Miami, which breaks ground today, is the robotic automobile lift, which allows drivers to pull right up to their doorstep, however many stories high, the Wall Street Journal reported.
Residents will be able to park their cars right outside of their units, according to the Journal.
The 60-story tower will have 132 residences, ranging from $4.5 million to $25 million, according to Gil Dezer, whose company Dezer Development is behind the project. Though construction is not expected to be complete until the first quarter of 2016, half of the units are under contract, representing $400 million in sales, Dezer said in a press release.
The apartments will range in size from 4,200 to 17,000 square feet, and in price from $4.5 million to $25 million. In a nod to Porsche Design and its first foray into real estate, the tower will have a “car concierge” responsible for coordinating washes, detailing, tire rotation and other maintenance. [WSJ] –Emily Schmall

Selecting the Ideal Short Sale Offer

Most real estate professionals equate the term “best offer” with the highest price, and in a normal transaction this is often the case. But in short sales the highest offer received is not always the best offer. Certain offers are much stronger for the purposes of a short sale because they ensure the buyer is committed and able to close. Here’s what we recommend for a strong short sale offer.

    

1)     Large deposit: Buyers who “put some skin in the game” with large deposits are going to stick around until closing. We recommend obtaining a deposit of at least 10% when possible.
2)     90 day timeline for approval: Most short sales take less than 90 days for an approval but that isn’t a given. Protect yourself and your seller by requesting a 90 day window instead of 45 or 60. Disclosing upfront that you can’t guarantee the speed of the short sale also helps maintain a smooth transaction and cuts down on frustration.
3)     30 day timeline to close:  Again, it’s important to ensure your buyer will come to the closing table. Even after an approval there is no guarantee the short sale will close. Many elements outside our control, such as financing, can delay or kill a deal. In order to make sure there’s enough time to deal with any unforeseen issues, it’s prudent to request an additional 30 days to close.
4)     Early Inspection: By completing the inspection early on, you avoid any “surprises” later on down the line and reduce the possibility the buyer will choose to walk before the closing.
Some of the offers you receive may meet these guidelines and some may not. If you receive an offer that doesn’t and/or is unable to meet the specifications above it may still be worth a look over.
Mark Greene: From the Short Sale Frontlines
Remember- you’ve got an entire short sale team behind you! We’re always available to review offers and help determine which one will be the best for your short sale.

Is housing on a 'sugar high'?

The strong home price increases of recent months are raising questions about whether a new housing bubble is on the way. But analysts still see problems ahead.

Apr 8, 2013

 

Just a few years ago, no one could have imagined that we’d be writing headlines about rising home prices. The evil "shadow inventory" loomed, and the chance that your underwater home would peek its head above the surface any time soon was slim.

But real estate is ever surprising, and just a few years after the real-estate bust and plunging values, home prices are rising again nearly everywhere in the United States. "Home prices are on a tear – thanks to the Fed," The Wall Street Journal wrote in Monday’s editions.

The rising prices mask some of the volatility that still exists in the market. First-time homebuyers have yet to come back to the market in large numbers, partly because they can’t get a mortgage in today’s environment. Many homeowners in hard-hit areas still have homes that are double digits under water. Much of the demand for homes is coming from investors.

The WSJ noted "murmurs of concern that the Federal Reserve's campaign to reduce interest rates could be giving the housing market a sugar high." But the Fed may not be the only culprit. These are the reasons the WSJ lists for rising prices:

• The number of homes for sale is at a 20-year low. That is partly because few new homes have been built in the past four years. Would-be sellers are still hesitant to sell at prices well below 2006 levels or fear they can’t get a mortgage to buy another home. And investors are scooping up much of what is offered for sale.
• Demand is rising. Investors are playing a major factor, but rising rents have encouraged more first-time buyers to enter the market.
• Low mortgage rates have increased purchasing power by one-third. At a 6.1% interest rate, a monthly payment of $1,000 will get you a $165,000 mortgage, The WSJ calculated. At a 3.5% rate, you can borrow $222,000 and still keep your payment around $1,000.

Are we heading for a new bubble? Experts interviewed said no. In fact, things may get worse, and the inventory of homes for sale is likely to rise soon.
"This is not a 2005 market," Rick Sharga, executive vice president of Carrington Mortgage Holdings, said at the real-estate expo in Dallas, as reported by Housing Wire. "A lot of what’s driving home-price increases is lack of available inventory. … Very few markets are anywhere near where we were at the peak."
By Teresa at MSN Real Estate 

U.S. hedge funds eye Florida, as they buy up distressed single-family homes

April 16, 2013 01:00PM                                      

Warren Buffett

 

Hedge funds are snapping up discounted single-family homes in South Florida to feed a growing appetite for rental properties, the Palm Beach Post reported.
A comment by Berkshire Hathaway Chairman Warren Buffett last year appears to have inspired heavyweight private equity funds like Blackstone Group and the Connecticut-based Starwood Property Group to sink money into the distressed residential real estate market, and, perhaps due to the number of distressed properties available, South Florida has been a favorite spot for such investments, the Post said.
Buffett told CNBC’s Squawk Box that if he could find a way to manage them, he would buy “a couple hundred thousand single-family homes.”
Blackstone Group created housing firm Invitation Homes to invest more than $3 billion in single-family homes nationwide, according to the Post. The private equity giant has purchased about 150 homes in Palm Beach County and another 500 in Broward and Miami-Dade counties, the newspaper said, citing property appraiser records.
“This is a growing market where people, more and more, are becoming renters either by choice or because of economic circumstances,” said Invitation Homes chief operating officer Marcus Ridgway. [Palm Beach Post] --Emily Schmall

Demand for South Florida property shrinks inventory and drives up prices

April 18, 2013 10:00AM
By Emily Schmall                       

Waterfront properties on Star Island

 

Waterfront properties are driving up sales prices in South Florida as inventory — from luxury to low-income — declines, according to first-quarter market reports released today by Douglas Elliman.
The gain in Miami-area sales prices coincides with a sharp decline in inventory, particularly of distressed properties, which fell 24.7 percent since the same period a year ago, the reports show.
The median sales price of short-sale and foreclosed condos in the Miami area has jumped from $95,000 to $111,500, a gain of 17.4 percent, while the sales price for the median non-distressed condo rose 7.4 percent, from $256,000 to $275,000.
South Florida’s 37.8 percent share of the U.S. distressed property market is at its lowest in three years, real estate appraiser Jonathan Miller told The Real Deal.
“Miami used to be the poster child for distressed inventory. That’s no longer the case,” Miller said.
As the supply of distressed properties declines, investors are shifting toward a different kind of housing stock, Miller said. The average non-distressed property is 29 percent larger than the average distressed property selling in South Florida, he said.
International investors continue strengthening South Florida’s coastal communities, Miller said, and without much use of credit. More than three out of four condo sales in Miami in the first quarter were purchased with cash.