Condos seem an excellent middle ground between apartment living and home ownership. Owners live in a cooperative community and share monthly maintenance fees. But what happens when foreclosures hit condo owners? There is collateral damage: fees rise for occupants who decide to stay or the building gets in disrepair or both. Condo owners all over the US have taken to mowing their own lawns, working security shifts, nagging each other for maintenance fee payments or simply dealing with it.
However Hessam Nadji, managing director of research services at Marcus & Millichap Real Estate Investment Services delivers the most sobering news, “We have not even approached the bottom and will not approach the bottom until 2009.”
Sales of existing condos were down 26 per cent year over year, compared to an 18% drop in single-family home sales. About 574,000 new condo units have been brought to market the last 5 years and nearly 300,000 new condo units are expected to be added to the pool in the next 2 years.