Bubble, Bubble, Toil and Trouble...........HOA Board, APPROVE on the Double!!
I have a condo listing in a large, very nicely planned complex.
Well, the HOA Board and management company of this building let the FHA Approval on the complex lapse as of 12/31/10.
Myself, along with other agents and homeowners have been getting on the case of the HOA board and management company regarding this because in general, 70-80% of the buyers in this area are FHA buyers.
What has happened in this complex because of the lapse of FHA Approval is that a "Bubble within a Bubble" has occured.
By cutting of 70-80% of the buyer pool from not having the FHA Approval on the building, this complex went through a DRASTIC plunge in selling price due to the desperation of those sellers wanting to sell - which are inclusive of standard, REO, and short sales.
Well, as of a week or so ago, the Board and management company finally got their act together and the building is now FHA approved.
Funny thing is after just 48 hours of the new approval, buyers started coming out of the woodwork! News travels fast!
But the question is, how long will it take for this complex to recover from this bubble that occured during the present bigger bubble of our current real estate market?
Should the current sellers increase their list price back up due to the pool of buyers being opened up again?
