All Forum Posts by: Troy Fowler

Florida’s overbuilding of the condo market will require strategic and proactive strategies to accelerate sales.
As condominium associations struggle with financial burdens and defaults increase, the lifestyle and environment they were built for facing increased strains.
Unlike other types of real estate, condominiums face additional challenges. Each community has an annual budget to operate. As owners fail to pay fees they are responsible for in keeping with this budget, an increased burden falls on the association and other residents. Condo associations often have the power to expedite a foreclosure process and can result in lenders being responsible for retroactive fees and maintenance fees moving forward.
With so much at stake including:

.Carrying costs
.HOA Fees
.Interest Expense
.Taxes
.Liability

The status quo for traditional marketing and sales of many condo units will result in both economic and emotional pain that could last for months or years.
In my next discussion, I will address how auctions may play a pivotal role with certain types of condominium communities to accelerate the sales process and support a return to a more balanced relationship for all parties.

One of the few sectors that is beginning to show opportunity is the multi family rental market. With more and more foreclosures and repossessions occurring and an increasing buyer base choosing to rent, the rental market in many areas of South Florida are gaining ground.

More and more South Florida residents are either choosing, or are forced to rent due to economic challenges, tight lending standards, or a continuing uncertainty about the valuations of local real estate. Rentals are providing a safe alternative for many residents either by choice or necessity.

For investors, buying power has increased. Cap rates are beginning to look very attractive, especially when compared to other rates of return in the se debt markets or risks in the securities markets.

Looking ahead, it has become clear that the housing market is going to take some time before it returns to a normal supply and demand cycle. This will undoubtedly result in an ongoing increased demand for quality rentals for years to come.

What are your thoughts regarding the temporary freeze on REO sales?

What impact do you think it will have on short sales?