More On The Menu For Condo Homeowners To Mull Over

It’s been a bitter eighteen months for homeowners as a whole and in the same time condo homeowners have had just as an equally bitter time, maybe even more so. Over the last week a few items came about that have put condos under the main heating light with some being good and others, well, a little bit harder to sallow. One thing is for sure and that is they all give condo owners something to chew on.

Problems for condos started a little beforehand (like an appetizer) in the real estate market downturns compared to other residential property sales and condos in some parts of the country were the first to feel the wrath of banks when they started to diet on making loans. One of the only other types of residential properties to leave a bad taste on bank pallets at the same time or with more intensity was manufactured housing or HUD homes.

As of the beginning of the real estate downturn areas of the country have for the most part followed course with Southern California, Florida and other heavy retirement states showing the greatest effect from the condo trans-fatty acid.

While condos may offer specialized taste for homeowners to buy and live in, they are also still somewhat of a specialized buyer real estate market. Because of this blend and other factors, condos make for a real estate market specialty dish (same as log cabins, manufactured homes and water front property) that really does demand closer monitoring by the homeowner, property investor and real estate professional in market terms.

Recently a few items worth biting into that are condo related have been posted or covered by the media and industry players. Of the tasty tidbits one stuck out to be extremely interesting and for sure one that many homeowners and real estate professionals may not be aware of. November 7^th item from the Chicago Tribune by Pamela Dittimer McKuen titled The right of first refusal dilemma, covers the right of refusal that many associations hold and how this sours the ability of homeowners and buyers to get FHA backed financing. The item also does a great job of pointing out HUD’s salty concerns with such clauses including but not limited to fair housing.

In an item that is just as enticing to check out and even touches on some condo history, Mortgage News Daily item titled Realtors Ask Feds for Reduction in Owner-Occupancy Ratio from November 10^th the industry player gives good critic reviews on an initiative by The National Association of Realtors to convince HUD and the newly formed FHFA to reduce the owner-occupied ratio requirement for condominium complexes. The piece with the use of history does point out possible risk to the request, however in the end shows support for the NAR recipe. While homeowners may as well find the idea to be sweet, appraisers and other real estate professionals may want to keep an eye on the proposal for future market data reasons. Investors may find the proposal process of interest as per the NAR, due to inventory levels standing to be shaken if not stirred.

In relation to market and inventory levels, an item from the Tampa Bay Online by Shannon Behnken titled Condos Converted To Rentals, points out the distress that condo developers have had and condo complexes being converted to “Luxury” apartments in downtown Tampa. While the piece covers the event it does not point to the effect that the move is having on those that had already bought condos and their market values, however it can almost be imagined rather they be burnt or slightly toasted. The idea of buying a unit in a “New-High End” condo development only to be a rental community in the end is sure to put a bad taste in ones mouth one would think in terms of market value. Of course only an appraisal would be able to prove this point or at least some market research to say the least. Bon Appetite.

In the end and in this day and age real estate market, homeowners and buyers must take care to take into account all the different spices that may affect or give some heartburn to the purchase or sale rather in the short or long term. Properly staying informed is vital to this need and it is hoped that the above listed items help in doing so, if not at least, list the nutritional values. Needless to say they are all items that we will be sampling when possible as they do make for some great developments. Like reading a French Menu…. No?

Thanks for reading and as always… remember that you condo stay ahead of the trend… sorry for the play couldn’t help it and if nothing else, be sure to order desert as comfort foods go great in this market.

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