Financial Woes Spark Revolt at Hopkins Condo [Star Tribune]
A cautionary tale for condo owners – understand that when you buy into a project, you also buy risk associated with the project itself. This article also illustrates why condo lending is subject to tougher standards and higher rates than traditional single family detached homes.
As Home Values Fall, Some Taxes Increase [Strib]
Steve Brandt has put together a nice piece on the how’s and why’s. Big picture: Residential property has not lost as much value as other property classes, so home owners will carry a larger share of the city’s revenue burden – 56%, up from 54% the previous year.
Shadow Inventory Imperils Housing [Strib]
Jim Buchta adds some local color to this national story. Shadow Inventory: The housing market is a little like a backed-up sewer – millions of homes in some stage of foreclosure or delinquency. Mothballed new construction condos. Accidental landlords and other eager sellers ”waiting for the market to improve.” All of these will add to inventory for years to come and likely put downward pressure on prices. Good news is the bulk of shadow inventory is concentrated in a few markets, and ours is not one.
Dodd-Frank: The Lobbyists Mescaline [BLB]
If you think the final stages (or even beginning stages) of enacting the Dodd-Frank Financial Reform Bill will have anything to do with reform, or looking out for main street, you should read this piece of nightmare fuel.
NAR: October Existing Home Sales Decline [CR]
Inventory levels dropped slightly, but are still extremely high at 10.5 months. Normal is something like 5-6 months. Suggests further price declines.