Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
Sharon is right on the money like usual. When she comments I learn something new. :-) As Sharon mentioned it's hard for most to acquire a loan to purchase so prices have dropped hard. If you have some cash it's a great investment.
Have a Great Day
It is practically impossible to get financing for condos in most communities right now, so the prices have dropped dramatically because the supply is so great.
Many developers of condos and condo conversions did not apply for FHA eligibility, so those units were never available for FHA or VA loans. Today, FHA and VA loans are the majority of loans, so most buyers couldn't get a loan for a condo even if they still had their eligibility.
The other problem is that those that did have FHA eligibility have lost it. They lose it when a certain percentage of owners are behind in their HOA dues and when there are too many non-occupant owners.
That's another reason the developers didn't apply for FHA - they wanted to sell to as many investors as they chose to and not be limited by FHA guidelines.
That leaves conventional loans and if you can get one, they require 30% to 50% down.
Between no FHA/VA, high conventional down payment and the risk of the condo association not being able to take care of the property due to lack of funds, buyers are wary and prices have plummeted way beyond what single family homes have.
We are actually seeing some leveling out in condo prices because they are so incredibly low and the supply is way down from what it was a year ago.
Hope this helps! If there is anything else we can help you with, give us a call at 904-673-2308.
Coldwell Banker Vanguard