More than two years into the housing slump, the challenges facing Washington's condos are mounting. Sales prices are falling and are not expected to stabilize soon. The number of condo owners not paying their association fees is rising along with foreclosure rates, creating a budget crunch weighing down many communities.
In the face of budget shortfalls, some associations are taking drastic steps to cope, including delaying maintenance and hiking monthly assessments. Others are setting aside part of their budget to cover delinquencies for a time or looking for ways to help owners catch up on payments.... The options can often be limited by owners' personal financial realities. ...
The problem may get worse before it gets better, according to some industry watchers. Foreclosure rates for condos have been rising. By the end of October, 1,208 condominiums were in the foreclosure process in the Washington area, according to RealtyTrac, a research firm.
The average sales price of new condos fell 3.6 percent in the Washington area during the third quarter compared with the same period a year ago.... The impact on existing condos has been even more dramatic: Sales prices fell 8.1 percent during the third quarter. At the current pace, it would take 8.2 years to sell the finished and almost-completed new-construction condominiums on the market.
Saturday, November 29, 2008
Washington, DC condos are feeling the pain
From The Washington Post: