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Recent Changes to Condo Financing and Appraisal Requirements
Following the 2021 collapse of the Surfside, FL condominium tower, and growing concerns nationwide about aging buildings and potential issues due to deferred maintenance, lenders are now required to perform additional due diligence when approving condo units for conventional loans. Fannie Mae and Freddie Mac have issued new requirements for condo and co-op financing. These requirements specifically address significant deferred maintenance, special assessments and reserve requirements. These guidelines are designed to protect condo borrowers from unsafe or financially unstable projects as well as help manage risk to lenders and investors.
Lenders have always required completion of a condo questionnaire for conventional financing. New guidelines will request more information from HOAs and association managers, and lenders will more closely review HOA minutes, budgets and reserves for references to issues relating to deferred maintenance or conditions that could impact safety, soundness, structural integrity or habitability. If issues are found, the lender may request documentation relating to inspections, engineering or other reports, open permits for repairs, etc.
Appraisers will also be required to provide more information relating to regular and special assessments and whether assessments pertain to routine maintenance or to deferred maintenance. Anything that could potentially impact the safety or marketability of the unit or the financial stability or safety of the overall community and amenities could require additional review.
These new lending requirements apply to communities with 5 or more units and will focus on condos built 20+ years ago. Time will tell whether these guidelines will require associations and property managers to provide more detailed information in the resale disclosure documents. If a lender is unable to obtain sufficient information to satisfy the new review guidelines, loans on a unit or community could be more challenging to obtain.
Bellevue Farmers Market Opening Day – Thursday, May 12th
photo courtesy flickr
Opening day for this year’s Bellevue Farmers Market is Thursday, May 12th. The market is open every Thursday from May through October from 3:00 PM to 7:00 PM. The market is located at Bellevue Presbyterian Church at 1717 Bellevue Way NE.
The market offers a mix of local vendors offering seasonal fruits & vegetables, flowers, fresh meats and artisan goods along with live music, activities for kids, tasty cuisine and community booths. Stop at the information booth for more details. Vendors accept cash, credit and debit cards.
There’s ample free parking on site. Service dogs are permitted as well as pets. Dogs must be owner controlled and kept away from food and other shoppers. Dogs who cannot mind their manners will be required to leave the market.
This is a welcome spring/summer event, even though spring weather has been a bit slow to arrive. The market is open rain or shine.
Bellevue Outdoor Movies In the Park
Downtown Park canal and grass lawn
It’s summer and movies in the park are back! Gather family, neighbors and friends, pack a blanket, lawn chairs and snacks and head to the Downtown Park and Crossroads Park for Tuesday and Thursday night movies. A 40 foot movie screen will show movies in both locations. Seating starts at 7:30 PM and movies begin at dusk.
BELLEVUE DOWNTOWN PARK
August 10th Trolls World Tour
August 17th The Croods 2: A new Age
CROSSROADS PARK
August 12th Onward
August 19th Raya and the Last Dragon
NOTE: Movies will be cancelled in the event of rain. Movie titles are subject to change without notice.
LOCAL SUMMER DAY TRIPS
Bainbridge Island/Robin Myers
I haven’t been to Bainbridge Island in years. I recently spent the day in Winslow with a friend who is an artist to see her work on display in a local gallery. After coffee at the waterfront park overlooking Eagle Harbor we explored the Bainbridge Arts & Crafts gallery, viewing her work along with the work of other artists and learned about the history of BA&C and future exhibitions. After cruising the options downtown we settled on an outdoor table at a local winery for lunch.
There’s something about a ferry ride that is so relaxing, making you feel like you’ve really gotten away, even if just for the day. Traveling as a walk-on passenger is even more relaxing, eliminating the car line and worrying about whether you’ll make the next sailing. It’s a short but beautiful ferry ride from Seattle to Bainbridge Island and an easy walk from the ferry dock to downtown Winslow’s museum, shops, galleries, restaurants and parks.
Bainbridge is a great last minute “what should we do today” activity on a sunny day. There’s plenty to do for an afternoon or linger a bit longer and make it a dinner date.
Summer May Offer Temporary Relief for Home Buyers
Downtown Bellevue Skyline
This week’s press release from the Northwest Multiple Listing Service (NWMLS) provided a hint of hopeful news for local home buyers. NWMLS data shows the number of active listings added to the market in June was at it’s highest level in 17 months.
In the tri-county area (King, Snohomish and Pierce counties) single family and condo inventory was up 14% in June compared to May. It’s tough to know how the typical summer slowdown when buyers and sellers take a vacation break, could impact the market. With the easing of COVID restrictions, more people may choose to travel and temporarily abandon their home search.
If there’s a pause in the summer market, it isn’t likely to last long. Tech companies continue to lease large blocks of office space, so it can be expected hiring will accelerate as well which will put demand on available housing inventory. Tech industry growth may also increase demand for the urban housing market in the third and fourth quarters as employees return to downtown offices and the many buildings under construction, and already leased, are completed and occupied.
Condo sales activity was hit hard in the early days of the strict COVID restrictions, mostly due to concerns about living in a community setting and navigating elevators and common areas. As those restrictions have eased condo sales have increased – nearly 60% compared to a year ago – and prices have increased more than 20%. Interest in urban living will likely continue as employees return to downtown workplaces and companies ramp up hiring.
For buyers who decide to stay-cation and continue their home search efforts, July and August could provide opportunities. Staying ahead of the fall hiring cycle and corporate relocation schedule could pay off for buyers this summer.
Robin Myers lives and works in downtown Bellevue. She is a Realtor® with Windermere Real Estate specializing in condominiums and urban lifestyles.
Bellevue Farmers Market Opens May 13th
courtesy: flickr
It’s a sure sign spring is here . . . the 2021 Bellevue Farmers Market opens this week. The market is open every Thursday from 3:00 to 7:00 PM. You’ll find the market at the same location as years past – Bellevue Presbyterian Church located at 1717 Bellevue Way NE. Look for a variety of vendors offering fruits, vegetables and cut flowers that will change with the season. All vendors grow and/or make all featured products within Washington State.
East Link Light Rail Progress
While shops and restaurants were closed throughout 2020, construction progress for Sound Transit’s East Link Light Rail continued moving forward. Tracks have been installed across I-90 and throughout the Eastside, stations are under construction, the Bel-Red maintenance facility is complete and landscaping is beginning to frame the tracks and stations. Driving through the Bel-Red neighborhood last week it was exciting to see trains parked outside the maintenance building.
Great news for commuters . . .parking at the South Bellevue Park-and-Ride will be available to bus riders later this year. The East Link South Bellevue Station garage will open to bus service in September 2021, nearly two years before train service begins.
When East Link opens in 2023 riders will have access to nearly 40 miles of light rail from the Eastside to downtown Seattle, Northgate and Sea-Tac Airport. Trains are scheduled to run every 6 minutes at peak hours. Estimated travel time from the Redmond Technology station to Bellevue Downtown is 10 minutes – South Bellevue to Sea-Tac just under 50 minutes.
Building light rail that travels on solid ground and a floating bridge has never been done before. It has taken years to design a safe and dependable system that will integrate with the I-90 floating bridge and continue to sustain auto traffic. Learn more in this video about the design and construction process.
Matthew Gardner’s Housing & Economic Update
This week Matthew Gardner, Windermere’s Chief Economist, shares his thoughts on the latest US home sales data.
Single family and multi family home values continue to rise while available inventory levels continue to decline. What’s the news for condos? Condo prices are trending higher nationwide, up 10% year-over-year. It’s difficult to know how long this trend can be sustained as we close 2020. What could impact values next year? We may hit an affordability issue, which could push some buyers out of the market, and increasing inventory levels may create more selection for buyers but more competition for sellers.
I specialize in Bellevue’s condo and townhome communities. If you have questions about the market or what’s been happening in your community, call, text or email.
Happy Thanksgiving. While this year may be very different from years past, if you have an opportunity to safely share the holiday with family, enjoy the day. Be safe and stay healthy.
