HOA's etc... Condominiums and Townhomes

What's in an HOA - Homeowners' Association?

Even though the old timer always said: "the land, son, it's the land that matters", nowadays a lot of real estate is in the form of condominiums and townhomes.  In fact in recent years, nationally, the appreciation is actually higher for condos and townhomes than for traditional houses, called SFR  (single family residences), a term which implies that there is a piece of land that comes with it.  The reason is because since they were cheaper to start with, and they are usually "starter homes", they were more in demand because more affordable.  Also, lifestyles have evolved and many more people live in cities where density is higher (hint: like in the Silicon Valley).

What do homeowners think of their HOA? The following information is provided by the California Association of Realtors.





if you are considering a purchase of a planned unit development ("PUD"), you may want to look at one of my older posts regarding condominiums in the Silicon Valley, or another one regarding the difference between condominiums and townhouses.

Thank you for reading, and share my blog if you like it!
Let me know how I can help you with your real estate needs,
Best regards,
Francis

Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   (going up...)

A worthy local non-profit to remember: Community Services Agency in Mountain View.

Condos are "back" !... and other real estate surprises

Bay area condos’ tight supply has buyers scrambling.
And prices are going up a lot as a result.

Across the Bay Area, buyers are fighting for a limited supply of new and existing condos.

Several factors are combining to create this situation:

  -  investors have already snapped up many foreclosures and short sales and are renting them out.

  -  homeowners who might sell in a typical market are either still on the sidelines watching prices rise or are underwater and can’t afford to sell (much fewer now than yesterday!),

  -  those homeowners who do want to move up cannot do so, as they question rightfully their ability to purchase a "replacement property" in this one-sided market (the lack of bridge loans does not help),

  -  demand has been growing, because of the good job market in the bay area, and also - interesting trend - because many buyers who went through short sales or foreclosures are becoming homeowners again, thanks in part to loans from the Federal Housing Administration.

  -  finally, as housing starts have risen in the past year or so, home sales haven’t kept up. The gap suggests that builders are overwhelmingly building for renters, not buyers.  This trend is better studied in this article by Nin-Hai Tseng of CNN.

Investors as well as builders did not fail to notice the significant increase in rental prices that we witnessed in the past 2 years (locally certainly, but nationwide too).  In a way, we can see a small part of this phenomenon unravelling in my last blog about the San Antonio shopping center, where for the time being the only residential units being built there are for rent.

Need to know the value of your condo?  Do not hesitate to contact me,

Thanks for reading, as always!
Francis

Silicon Valley real estate

Trends: Local prices and graphs.

Coming soon: The Peninsula French Fair  - Art, food, and good company!!
Sat. March 23rd, all day.