There was some hesitation in choosing to write about this topic until our most recent presentation we made for a local Condo Association in the Twin Cities. We're often invited by Condo and Townhome Associations to present a 'State of the Real Estate Market' presentation specifically associated to the Condo or Townhome association residents. We're also invited in to discuss their position to foreclose or not foreclose on their seemingly destined assets.

More often than not, the Association leadership is usually more concerned about appeasing their homeowners (particularly in a down market), than actually preserving or improving the residents ownership interests. Validating or justifying fees and potential fee increases also seems to be a very high priority. Yet, when it comes to any delinquent homeowners heading to foreclosure; many condo and townhome associations seem to leave a ton of opportunity on the table in both equity and reserves. We're helping more associations realize that foreclosures are not only a reality of the over-inflated market in the roaring 2000's; foreclosures can also be an opportunity for the entire common interest community. Part of the problem associations are experiencing with the somewhat over-correction on prices is that many Condo and Townhome Associations only focus on obtaining their rightful dues, penalties and potential assessments from the foreclosing firm when the asset is sold and transferred. Now we're helping associations consider the foreclosure destined property to also be considered an asset to the association and the common interest community. This also allows us to help them with their options associated with the decisions to retain, foreclose or apply to the appropriate investment options that could better serve their interests versus simply putting it on the market and dropping the price until someone buys it.

I wish more Condo and Townhome Associations took the time to reach outside of the box for professional support on their real estate assets. Often times, they'll resort to obtaining advice or support from the resident real estate agent or investor who again might have a conflicting interest to the remaining owners in that common interest community. Which brings me to another thought or question: Shouldn't the listing agent who is also an owner within the Condo or Townhome Association have to disclose their ownership interest on all listings they have within that same association? How about this question: Might that same agent also expose that same Condo and Townhome Association to potential liabilities associated with lack of disclosure and potential code of ethics disputes associated with that lack of disclosure? What do you think?

Fact or Fiction?  No Fiction here.  The data below clearly shows that there are actual improved median sales prices in certain neighborhoods and at certain price points.  The info sparks chart below clearly show higher median sale prices on home sold in January of 2005 increased by approximately 14% since then.  Yes increased median sales on homes price above $599,900.  Homes priced between $449,990 and $599,900 basically held there own in the Ecco Neighborhood in Uptown Minneapoils and median sale priced homes between $290,000 and $449,900 also held their own during the last seven years.  Only homes priced under $200,000 dropped in median sales price (mostly condos in this bracket).

The Real Estate Market has struggled over the last five to six years depending on where you live.  However, the current under performing markets across the nation are particularly related to the 'tighter credit and mortgage' conditions which have held back recent buyer and consumer confidence in the marketplace.

The National Association of Realtors, "The Voice of Real Estate" and Lawrence Yun, Chief Economist have noted a sizeable pent-up demand based on important economic factors such as: population growth, employment levels and a doubling-up phenomenon that can't continue indefinitely.  This demand could stimulate the market quicker than expected as these conditions improve in 2012 and beyond. More on the Housing & Economic Recovery here...

As the voice of real estate for housing stakeholders, the National Association of Realtors have been actively participating in the housing summit, advocating for practical solutions to bring housing back into a balanced state.  So, yes, our economy is under-performing and yes every indication is that we're back to a new normal and aside from the 'ski-jump' that took place in the early 2000's, we have over 80 years of history showing consistent and predicatable appreciation in real estate across the nation.

Congratulations, you've finally aligned yourself with an investor resource who does more than send you properties for you to figure out on your own if it's a good deal or not. There are so many opportunities out there they appear impossible to decipher whether it's a good investment opportunity or not. 

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