It used to be relatively easy for a condo complex (or “project” in FHA parlance) to get certified by the FHA, meaning the agency would loan money to qualified buyers of units there. But with the burst of the housing bubble, FHA realized that a lot of delinquent and foreclosed properties were condos. So it tightened its rules.

Essentially, it ‘de-certified’ every condo and townhome and required each one to re-apply for certification, giving plenty of notice about what was going to happen. And in May it did just that.

Some condo associations and management were on the ball and immediately applied for recertification. But many, for whatever reason,  did not. Some may have not realized they had to get recertified. Others may have had officers concerned about liability issues if they signed certification documents. And of course some condos simply don’t meet the FHA’s requirements.

Whatever the reason, the end result is that buyers are ineligible for FHA financing to buy a unit there; something many sellers don’t discover until late in the process when they learn that their pool of prospective buyers has shrunk considerably.

And because the certification process can take months, deals fall through or never get off the ground in the first place. Fewer buyers means prices will have to go down.

Bottom line: We need to get the word out to condo owners, condo associations, property managers, and anyone who is involved in buying or selling a condo or townhome: Find out whether your condo community is FHA certified.

Get in touch with the condo board or association.  There’s a good chance they’re not even aware of the issue.

Requirements for FHA certification

• For a condo complex (or “project”) to have its units qualify for FHA loans, it must meet the following requirements:

• Insurance Coverage: Projects must be covered by hazard and liability insurance and, when applicable, flood and fidelity insurance.

• Commercial Space: No more than 25 percent of the property’s total floor area in a project can be used for commercial purposes.

• Investor Ownership: No more than 10 percent of the units may be owned by one investor. This limitation also applies to developers/builders that subsequently rent vacant and unsold units.

• Delinquent Home Owners Association (HOA) Dues: No more than 15 percent of the total units can be in arrears (more than 30 days past due) of their condominium association fee payments.

• Pre-sales: At least 50 percent of the total units must be sold prior to endorsement of a mortgage on any unit.

• Owner-occupancy Ratios: At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units.

• FHA Concentration: No more than 30 percent of the total units can be encumbered with FHA insurance.

• Budget Review: The homeowners association budget must include sufficient funds to “maintain and preserve all amenities and features unique to the condominium project” as well as insurance coverage.

For the details, click here to a one-page HUD PDF.

July solds (transactions actually closed) were down by 14 units, or about 6% vs June. Year to date (YTD) through July for 2011 had 1340 units sold, up 31 units or about 2% from the same period last year. (There were 1318 during this period in 2010, 1117 in 2009, and 1370 in 2008.)

As of 07-31-11, there were 1423 active (for sale) properties listed on the market, with an average list price of $143,900.

Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of July 2011 were 2994,compared to 3125 for the same period in 2775 and 3127 in 2009.

The absorption rate for the current inventory of single family units is 6.0 months, compared to 6.5 months in 2010. In 2009, we were at 4.3 months, and in 2008 we were at 4.1 months.

Average days on the market (DOM) for sold units was 75 for 2011 at the end of July compared to 76 in 2010, 66 in 2009 and 66 in 2008. As of July 31, there were 355 sales pending (sold, but not yet closed), with an average LIST price of $126,297. (This would be the LIST price at the time the property went from an “active” to “pending” status and would not account for any price reductions, etc. The actual sold price is not available until after the transaction closes).

YTD through July, 2011, 313 closed sales were reported as foreclosure properties, 13 short sales (lender agrees to take less than seller owes) and 14 non-arms length (non traditional) transactions.

June solds (transactions actually closed) were down by 7 units, or about 3% vs May. Year to date (YTD) through June for 2011 had 1124 units sold, down 194 units or about 14.7% from the same period last year. (There were 1117 during this period in 2009, and 1370 in 2008.)

As of 06-30-11, there were 1427 active (for sale) properties listed on the market, with an average list price of $146,105. Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of June 2011 were 2574, compared to 2646 for the same period in 2010 and 2361 in 2009.

The absorption rate for the current inventory of single family units is 5.8 months, compared to 4.7 months in 2010. In 2009, we were at 4.7 months, and in 2008 we were at 4.8 months.

Average days on the market (DOM) for sold units was 81 for 2011 at the end of June compared to 76 in 2010, 76 in 2009 and 76 in 2008. As of June 30, there were 306 sales pending (sold, but not yet closed), with an average LIST price of $128,530. (This would be the LIST price at the time the property went from an “active” to “pending” status and would not account for any price reductions, etc. The actual sold price is not available until after the transaction closes).

YTD through June, 2011, 280 closed sales were reported as foreclosure properties, 10 short sales (lender agrees to take less than seller owes) and 8 non-arms length (non traditional) transactions.

As of 05-31-11, there were 1417 active (for sale) properties listed on the market, with an average list price of $145,415. Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of May 2011 were 2012, compared to 2212 for the same period in 2010 and 1899 in 2009.

The absorption rate for the current inventory of single family units is 5.4 months, compared to 4.6 months in 2010. In 2009, we were at 5.4 months, and in 2008 we were at 5.0 months.

Average days on the market (DOM) for sold units was 81 for 2011 at the end of May compared to 75 in 2010, 79 in 2009 and 76 in 2008. As of May 31, there were 366 sales pending (sold, but not yet closed).

YTD through May, 2011, 226 closed sales were reported as foreclosure properties, 7 short sales (lender agrees to take less than seller owes) and 6 non-arms length (non traditional) transactions.

April solds (transactions actually closed) were up by 35 units, or about 16% vs March.  Year to date (YTD) through April for 2011 had 717 units sold, down 57 units or about 7% from the same period last year. (There were 634 during this period in 2009, and 832 in 2008.) This is undoubtedly attributable mostly to the $8000 & $6500 tax credits that were available last year.

As of 04-30-11, there were 1366 active (for sale) properties listed on the market, with an average list price of $143,403.  Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of April 2011 were 1658, compared to 1860 for the same period in 2010 and 1478 in 2009.

The absorption rate for the current inventory of single family units is 5.8 months, compared to 4.9 months in 2010. In 2009, we were at 6.5 months, and in 2008 we were at 5.2 months.

Average days on the market (DOM) for sold units was 85 for 2011 at the end of April compared to 81 in 2010, 81 in 2009 and 78 in 2008. As of April 30, there were 370 sales pending (sold, but not yet closed).

YTD through April, 2011, 250 closed sales were reported as foreclosure properties, 6 short sales (lender agrees to take less than seller owes) and 6 non-arms length (non traditional) transactions.

For the 13th consecutive year, nobody sells more real estate than RE/MAX!

3-24-11 Press Release

Compare RE/MAX vs the rest of the leading brands

Year to date (YTD) through March for 2011 had 469 units sold, down 6 units or about 1% from the same period last year. (There were 445 during this period in 2009, and 571 in 2008.)

As of 03-31-11, there were 1305 active (for sale) properties listed on the market, with an average list price of $141,792. Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of March 2011 were 1170, compared to 1270 for the same period in 2010 and 1045 in 2009.

The absorption rate for the current inventory of single family units is 6.6 months, compared to 5.8 months in 2010. In 2009, we were at 5.6 months, and in 2008 we were at 5.9 months.

Average days on the market (DOM) for sold units was 88 for 2011 at the end of March compared to 84 in 2010, 76 in 2009 and 77 in 2008. As of March 31, 2011, there were 343 sales pending (sold, but not yet closed).

YTD through March, 111 closed sales were reported as foreclosure properties, 6 short sales (lender agrees to take less than seller owes) and 3 non-arms length (non traditional) transactions.

Laundry is in the basement.  2 bedrooms are on the main floor, and one is on an upper level with a loft-style overlook to a section of the living room.  There is lots of storage space.

One full bathroom is off the main floor hallway, another off the main floor master bedroom, and another off the 3rd bedroom (upstairs).

This unit is very dated and is priced accordingly so that the buyer can have it professionally painted inside, and update countertops and flooring as they desire.

I anticipate that at the time of availability, we’ll have a professional home inspection available and possibly other information.

The homeowner association dues at Pepper Tree are $295/mo. and include exterior maintenance (exterior painting, mowing, snow removal, roof replacement currently being done over a 7-year period, water, sprinklers, pool, community streets, trash, etc.)  For complete details about the home owners association and the community in general, visit the Pepper Tree website.

This property is not yet available, but will be soon.  To get on the list to be notified,
send an email to Jerry Long with Pepper Tree Notification as the subject line.

February solds (transactions actually closed) were up by 33 units, or about 30% vs January.  This is very common at this time of year, as more buyers enter the market place, and some sellers still think it might not yet be time to put their home on the market.  I do feel the activity picking up and the energy rising – in my own business, through the office, and through my colleagues throughout the city.

Year to date (YTD) through February for 2011 had 253 units sold, up 17 units or about 7% from the same period last year. (There were 236 during this period in 2010, and 238 in 2009.)

As of 02-28-11, there were 1346 active (for sale) properties listed on the market, with an average list price of $135,879. Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of February 2011 were 690, compared to 703 for the same period in 2010 and 672 in 2009.

The absorption rate for the current inventory of single family units is 9.4 months, compared to 9.1 months in 2010. In 2009, we were at 7.3 months, and in 2008 we were at 5.7 months.

Average days on the market (DOM) for sold units was 83 for 2011 at the end of February compared to 73 in 2010, 83 in 2009 and 83 in 2008. As of February 28, 2011, there were 238 sales pending (sold, but not yet closed).

YTD through February, 83 closed sales were reported as foreclosure properties, 2 short sales (lender agrees to take less than seller owes) and 3 non-arms length (non traditional) transactions.

The numbers are in for January, and my analysis is in line with the top economists that I follow – we’re on the road to a slow….but SURE….housing stablization in Topeka. When you look at these numbers, remember what kind of weather we had in January!

Year to date (YTD) through January for 2011 had 110 units sold, up 16 units or about 17% from the same period last year. (There were 94 during this period in 2010, and 84 in 2009.) The average sale price of the solds (YTD) was $107,957 compared to $109,051 in 2010.

As of 01-31-11, there were 1362 active (for sale) properties listed on the market, with an average list price of $134,001. Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of January 2011 were 366, compared to 352 for the same period in 2010 and 342 in 2009.

The absorption rate for the current inventory of single family units is 12.4 months, compared to 13.7 months in 2010. In 2009, we were at 13.9 months, and in 2008 we were at 9.3 months.

Average days on the market (DOM) for sold units was 94 for 2011 at the end of January compared to 62 in 2010, 89 in 2009 and 94 in 2008. As of January 31, 2011, there were 223 sales pending (sold, but not yet closed).

YTD through January, 32 closed sales were reported as foreclosure properties, 1 short sale (lender agrees to take less than seller owes) and 2 non-arms length (non traditional) transactions.