THE FUTURE OF ST PETE CONDO SALESis still up in the air. With some noted sales improvement of St Pete Condos end 0f 2010 , 2011 will present its own set of challenges in the St Pete Condo Market. Devaluation of Currency overseas has slowed the demand for St Pete Condos from our European buyer markets. However, with some economic improvements in the jobs markets consumer confidence may improve the demand for condos overall including St Pete Condos and the entire states condo market. The BP spill slowed demand and supply for sometime and once confirmed the St Petersburg market was not impacted directly by the spill improvement was noted. The St Pete Condo market is and will be impacted by tougher financial requirements by lenders. The 2nd and 3rd home St Pete Condo market is impacted by new 25 to 35% down requirements. Tougher lending guidelines make purchasing in the sunshine state more difficult and for some impossible. The St Pete Condo Market needs reasonable requirements both on deposits and lending guidelines. Lenders are almost making it prohibitive to buy. Another area impacting the condo market overall including the St Pete Condo Market is appraisers are still able to use short sale and or bank owned sales to derive value. This has far reaching impact to sellers and owners. Sellers requiring a certain amount to clear all debt at closings may find themselves pushed into a short sale situation due to one unit in the entire complex that had to go short. Owners wanting to refinance to reduce overall costs to maintain the home find refinancing almost impossible in the 2nd and 3rd home markets. Also, St Pete Condo owners and those statewide, find previous short sales have reduced equity so they cannot meet the new 25 to 35% equity requirements. The entire condo market needs easier access to financing and refinancing to stabilize the condo markets. What do you think, any chance of that happening.
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