I admit sleeping thru the mobile home/mortgage loan spasm of 2009 till present. Making it almost impossible to get any kind of loan on singles, doubles, triple wides, and even modulars. Banks tightened up for good reason, they are a foreclosing/depreciating nightmare for banks. "I understand that."
Next comes the Banking Industry Crackdown on Large/Estate Homes priced over $417,000. Just google Jumbo Loans and you will fully understand the Hardships of Executive Homes still sitting on the market waiting for potential buyers.
Thirdly I have the deepest sympathy for Condo Owners across the U.S. especially those in heavily populated tourist areas. Why is that you Ask? It's kinda like being on a Fantastic Vacation and then suddenly boom a flat tire. Condo Owners in Miami, Gatlinburg, Charlotte, Detroit have all received that flat tire and did not see it coming. Will Johnson City, TN get as bad as the areas mentioned, probably not, actually I am positive it want.
What has caused the recent decline in condo sales in Johnson City and the Tri-Cities? Let me set the stage
1) The Powerful Mortgage Brokers, Fannie Mae, Freddie Mac, and of course the U.S Government. Banks want 20% down unless your a PUD (Planned Urban Devlelopment) which most Condo Associations in this area are not. They have also raised the credit score limit on purchasing a condo
2) OverConstruction of Condo type Subdivisions/Patio Homes by Local Builders.
Mainly these are the two culprits that began the decline which leads to number 3, 4, and 5
3) Added Inventory to Condo Market with seller's desperate to sale and no room to negotiate, not to mention tumbling appraisals and limited/qualified buyers.
4) Builder's slashing prices on the development that they created, where many residence reside that paid top dollar a year or two earlier
5) The Added Inventory of Desperate Seller's needing to sell leads to Foreclosure.
Johnson City, TN and the Tri-Ciites are unfortunately entering stage 5 of this equation.
Condos are nice in alot of ways. Have Associations do the lawn care, travel to places without worry of maintenance needs, Social Atmospheres, Sometimes swimming pools and tennis courts, more time to do other objectives. Builder's picked up on this need and spent 2005-2009 as a primary goal to build as many condos as possible. At the time, nobody was thinking about the banks tightening up their money and locking the safe. Which makes my point!
Busy Lifestyles > Overdevelopment > Economic Slowdown> New Bank Guidelines > Foreclosure
Which opens up a new growing fad> Apartment Homes like the Haven or Value Place
There is a Solution to the problem! Loosen the Condo Guidelines or this may be a long ride
Thanks for Reading and Visit us on the web at www.yourjohnsoncity.com
Team Haynes/Workman REMAX Checkmate