Major problems with condos for 2011
Four Real Estate Market Predictions for Homebuyers in 2011
Check item #3. I am extremely aware of this as we just lost a sale on our MI condo because the number of delinquents are now too high. This dashes our hopes to retire in FL. We are currently in FL and have been looking at properties but now have made plans to return to MI and the snow. It also leaves me in fear of ever rising condo fees.
But on a less personal level perhaps a greater problem may be in progress. In our complex most of the delinquent accounts are banks or fannie mae that have taken over foreclosures and now refuse to pay the HOA fees. This is a vicious cycle as it locks out the ability for residents to sell and creates more forclosures - etc. etc. I know my experience is anecdotal but I have to assume this is going on in many places. I feel that this problem will greatly add to the housing problem in 2011 and perhaps create a double dip in housing.
Between this bank created problem and the shadow inventory of houses the banks must
put on the market soon - it looks to me like we are not out of the woods no matter what the economists are saying.