Condo Relief

The condo market can be one fickle little creature.  Some years, condos are hot. Everybody wants one.  Then, it goes cold and nobody will even look at them.  But, over the last few years, something else has been happening to the condo market. Something kind of scary.

Condo complexes or neighborhoods are subject to a lot of scrutiny when it comes to financing.  For someone to obtain an FHA mortgage on a condo, the complex must appear on the "HUD list" which is something the HOA has to apply for and maintain.  This has proven to be problematic in recent years because many HOAs either don't know they are supposed to be doing this, or they do know that their neighborhood no longer qualifies.  And since the majority of people are getting FHA financing these days, this presents a problem

But what about buyers using conventional loan products?  Well, we run into the same problem.  Even the conventional lenders want to follow the same guidelines. So, if the complex has too high a ratio of owner occupants to renters, no dice.  If the complex has too little money in their reserves, or if their insurance is less than $1M, sorry Charlie.  So, as you see, it was becoming an environment that if you owned a condo, you couldn't sell it because no one could buy it. And what happens then if someone can no longer afford their condo...foreclosures go up.  The situation was looking pretty dire.

Well, today I was talking to one of my lender friends. He and I had previously had this gloom and doom conversation about the condo situation.  He shared my concerns. Well, now, he's found a loan program that will allow a buyer, who intends to be an owner occupant, to purchase a condo regardless of the owner/renter ratio. This is huge, because that's usually the part of the equation that hangs everyone up.  This is really good news for condo owners and purchasers.  And, just in the nick of time. I'm meeting with a client tomorrow who I sold a condo several years ago.  He's ready to move on to something bigger, so this is really good news.

Anyone in the market for a cool condo near the Zoo?

Two signs the Spring Market is upon us!

  
As soon as these happy little faces start showing up in our gardens and our yards, we know spring is finally here.  With the warmer weather, blooming shrub & trees and fragrant blossoms comes that spring real estate fever. We'll begin seeing cars slowly cruising neighborhoods, increased visitors on our websites and more inquiries.  

Bring it!  We are ready for you buyers. Interest rates are still at historic and unbelievable lows. We have a healthy inventory with lots of great choices. Let the spring fever grip you and help you take advantage of these opportunities!

Wexford on the Lake

Stately, brick 3-story home on large corner lot. Luxurious master suite, formal rooms, two bonus rooms, large kitchen, inground pool and screened porch. 

$375,000

 Fresh paint throughout, side entry garage with new floor surface, lake access neighborhood.

Seller's Market?

I admit it.  I don't always see trends until they are obvious.  Dottie, on the other hand, almost has real estate clairvoyance.  A week of so ago, she casually mentioned to me that the market seems to be turning toward a seller's market and various sources are predicting that we're moving toward a shortage of available homes.

Since then, I've been thinking about this and realized that she's right.  As usual.  Very subtly, sellers are gaining more power and control in the transaction.  Depending on where you are, sellers have been getting beat up pretty badly over the course of the last 6 years or so.  Buyers developed a sense of control that they wielded mightily.  Low offers, walking away from a counter, requesting outlandish concessions and expecting sellers to bow down and kiss their feet for the privilege of selling their house way below market or for less than they paid for it.

But...

lately, sellers are standing firm and it's the buyers who are starting to take a little whipping.  Buyers who have been waiting for rates to go lower (really?  is that possible?), buyers who have been offer-hopping trying to get steals, and buyers who have simply been slow to act may soon find themselves in a much different position.  Why is that?  Well, a few reasons.

First, in the past, a family who needed or wanted to move up quite often ended up in new construction because it's less expensive than existing homes.  Existing homes appreciate over time, you see.  When the recession came along, builders were going bankrupt right and left.  There simply aren't as many of them out there anymore.  The majority of new construction today is being built by the big companies that were able to weather the storm.And, viola, not as much new construction for existing homeowners to compete with .

Second, many people who wanted to sell their homes but couldn't for one reason or another went the route of that show, "Love it or List it."  You improve your kitchen, update the baths, add a screened porch, put it new flooring and all of a sudden you realize you no longer NEED to sell your house and can stay put. This certainly takes the pressure off someone who thought they had to sell when they realize they are ok where they are.  So, what this results in is less and less homes coming on the market, thus creating shortage of inventory.  Of the ones who went this route and decided they still wanted to sell are now in a position to say, "No. I'm not having a fire sale on my house.  Thank you for playing. Don't let the door hit you on the way out."

I actually hate to hear people in any sales profession say "Now's the time to buy.  Now's the time to sell."  Someone is always buying and someone is always selling.  You can't have one without the other.  However, buyers who have been waiting around should sit up and take notice.  Keep your eye on the ball because the game is changing.  Interest rates have been low to help people sell, not to help people buy. That's going to change as the shortage grows. Wait too long and you'll wake up realizing that the tables have turned and the sellers have all the power.

Lake Carolina for two different budgets

We've got two wonderful homes available in N.E. Columbia's Lake Carolina.

Located in Centennial $140,000

This is one of those homes where you feel like you could eat off the kitchen floor!  Neat and tidy is an understatement.  Features include`4 bedrooms, 2 1/2 baths, fantastic master suite, bonus loft area, laminate floors, upgraded appliances, fenced backyard with deck, sprinkler system and house is located on a corner lot.

Berkeley  $224,900

This is a dynamite home, also located on a corner.  Features include a recently remodeled kitchen with granite, breakfast nook, computer desk & tons of cabinets, 2-story greatroom with fireplace, master on main level, 5 bedrooms in total, formal dining room, and patio with pergola.  Side entry garage, fenced backyard and a nice storage building.

Both homes are move-in ready and bargain priced.  Home prices are on the move...UP.  So, strike while the iron is hot!