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Where Are the Bellevue Condominiums?
An article in the Puget Sound Business Journal this week compared the available local condominium inventory to New York City. Granted, NYC is a much larger and more expensive market, but currently NYC has 388 condos for sale priced less than $500,00. At the time the article was written there were only five condos available for sale in Seattle priced under $500,000. Here on the greater Eastside there are less than 100 condos available for sale – not nearly enough to satisfy demand.
We are fortunate to live in a region where the economy is thriving, employers are hiring, housing is relatively affordable (compared to some other major metropolitan areas) and its a beautiful place to live with a temperate climate and year-round recreation options. Recent U.S. Census Bureau reports show that nearly 250 people move to the Seattle/Bellevue metropolitan area every week (for all the reasons just mentioned). Its also a great place to retire because of the mild climate, vibrant arts, entertainment and social scene and world class health care services, so people aren’t leaving in great numbers either. Because retirees stay in the area and because job opportunities bring hundreds of people a day to the area, it doesn’t appear there will be much change or relief to the tight inventory or escalating housing prices in the near future. Continue reading
Buying a Home with Less than 20% Down
It’s a common misconception that a minimum 20% down payment is required to purchase a home. Buyers, saving to put 20% down on a home purchase, could be missing the opportunity to buy a home, and instead are watching prices continue to escalate.
There are excellent loan programs available with 5% or 10% down (even as little as 3.5%), requiring less cash out-of-pocket for buyers. A lower down payment may likely result in a somewhat higher monthly payment, but when you consider that houses and condos in the Seattle/Bellevue area have increased in value 14% or more so far this year, and expected to continue to increase in value next year, waiting to buy could prove to be more costly. With rents also on the rise, it could make more sense to buy this year and start putting money toward building equity rather than toward another rent increase next year. Continue reading
2016 Strong for Condo Sellers
With only 24 resale condos listed for sale in downtown Bellevue there are very few choices for buyers ready to purchase. (Add in the 39 developer owned units still available at Washington Square and the total is barely over 60 in the entire downtown marketplace).
Inventory is at historic lows, prices are at or near record highs, multiple offers are the norm, higher buyer demand continues and there's no new condo construction in site . . . this year may well be your best time to sell your home or investment property. Bellevue is continuing to grow, more companies are moving to the city than are leaving, the arts and social scene is thriving, some of the best shopping and dining north of San Francisco can be found in Bellevue and the city is in the center of an award winning school district. The city has so much to offer for a variety of lifestyles and budgets. Condo prices start in the mid $300,000s (yes, there are affordable condos downtown) and can skyrocket to several million for a view penthouse. Don't miss the opportunity to maximize your return on investment if you're ready to make a change, find more space, move up to a view or reinvest in another rental property. 2016 could be the year.
Condo Financing and the FHA
Condominiums offer a great opportunity for first time buyers to enter homeownership and begin to build wealth, equity and credit. FHA (Federal Housing Administration) loans were a popuilar option for financing as they often offered more favorable interest rates and down payment options than conventional loans. In recent years FHA has placed significant restrictions on the purchase and sale of condominiums, preventing buyers from purchasing condos, harming homeowners who want to sell and limiting the ability of condominium communities to attract buyers. In order to obtain FHA financing on a condominium, the community must meet a strict list of requirements and obtain FHA certification (a labor intensive process and expensive for the HOA) and recertification is required every several years. As a result, communities have let their certification lapse and FHA insured condo mortgages have plummeted in recent years.
Lawmakers are urging FHA to review these guidelines and ease restrictions on condominium community certification requirements in an effort to make FHA financing an easier process and promote affordable home ownership opportunities. The National Association of Realtors® (NAR) has also been pushing FHA on many of these proposed changes for over three years.
Condos are a critical part of the natural progression of home ownership. Reducing the current restrictions impacting FHA condo financing will go a long way in assisting first time buyers who are entering the market, current condo owners who are ready to sell and move up to a larger home and seasoned homeowners who are ready to downsize to a lower maintenance lifestyle.
Condos Fill Affordability Niche in Bellevue
Housing prices keep going up and available inventory keeps shrinking . . . this combination continues to drive prices upward with no immediate relief in sight. With Eastside home values appreciating on average 10%+ per year, finding an affordable home can be challenging.
While the suburbs are popular with some buyers, the demand for urban living is on the rise. Buyers are seeking communities walk-able to workplaces, nightlife, arts and entertainment, transportation, schools ad parks. Downtown Bellevue checks off all those boxes which is what makes it an increasingly high demand place to live. While "affordable" may not be the first word that comes to mind when thinking about downtown Bellevue real estate, there are many condo communities in or within a block or two of downtown with homes priced under $500,000. So far this year 166 condos have sold in the 98004 zip code; 45% of those sold for under $500,000. There are less than 80 condos currently on the market in the downtown marketplace (about half of normal); nearly 20% are priced under $500,000. Expanding the search to condo and townhome communities within a mile of downtown significantly increases the choices and still keeps the commute to work, restaurants, shopping and events at less than five minutes.
Whether you're a first time buyer, relocating here for a new job, downsizing from a larger home or giving up the "burbs" for city living, its possible to find the right fit for your lifestyle without braking the bank.
Condo Insurance – what you need to know
Condo insurance, what could be more boring. Did you know . . .
Most homeowner associations carry a master insurance policy which covers damage to a community's residential buildings and parking structures. The HOA may also carry additional earthquake insurance. As a homeowner you need to understand what coverage falls under the HOA's master policy and what coverage you are responsible for having.
- Mold is almost always excluded on the HOA general liability insurance policy. Other exclusions may include damage from water incidents, insects, animals, "acts of God" and vandalism.
- While some condo insurance policies may provide some amount of coverage for damage within a unit, the HOA's general liability insurance policy almost never covers an owner's personal property.
- Condo owners are strongly encouraged to obtain their own personal insurance policy to cover their personal property as well as provide coverage for items/circumstances not covered in the association's policy and deductibles. (Some HOAs may require owners to provide proof of insurance.)
- Definitions of unit boundaries for HOA policy insurance coverage vs. owner policy insurance coverage can be found in the association's Declarations (also called the Covenants, Conditions and Restrictions or CC&Rs.)
- If a condo owner rents the condo, it is a good idea to require and obtain proof that the tenant has a renter's policy to insure the tenant's personal property.
If you are selling a condo, the HOA master insurance policy is one of the documents a seller must provide to the buyer. This document will be required by the buyer's lender and escrow as part of the buyer's loan approval and closing documents.
For more information about your condo's insurance coverage contact your association manager or your insurance agent.
