Saturday, November 28, 2009
The Mortgage Bankers Association of Hawaii fears that 545 Hawai'i condo projects will automatically lose their eligibility for FHA lending next year under revised rules proposed by the agency.
FHA loans are available for single-family home and condo purchases. For condos, the loans are limited to projects that meet certain requirements, such as those with no less than 50 percent of units occupied by owners, no more than 15 percent of units delinquent on association fees and no more than 10 percent of units owned by one investor. But in some cases these requirements haven't been reviewed after condos obtained initial FHA lending approval years or decades ago.
Under proposed rule changes, all condos automatically would be removed from FHA's approved lending list two years after a project was placed on the list. In Hawai'i, that would mean virtually every condo project on FHA's approved list, or 545 projects, would be removed.
The Mortgage Bankers Association of Hawaii had asked that previously approved condos in the state remain on the FHA's approved list for two years to allow time for more orderly reapprovals. Initially, the removal was slated to take effect Dec. 7 upon implementation of the new rules. However, recently the agency granted a grace period of one year before condos with old approvals will become ineligible for FHA loans unless they are reapproved.
Contact me for more information on how this proposed change may affect your purchase or sale of a Hawaii Kai condo.
Barbara Abe, Realtor
(resource: Honolulu Advertiser)
Friday, November 20, 2009
This cycle will continue now that the federal government has extended the credit to mid-2010 and expanded it to make a smaller credit available to repeat buyers and to households with higher incomes. “The key is stabilizing prices and preserving household wealth,” he says.
Thursday, November 5, 2009
The current rate of sales for both single-family homes and condominiums were both slightly up in October, which is truly encouraging in light of the current economy," said Sandra "Sam" Bangerter, president of the Honolulu Board of Realtors. "The median prices for single-family homes were up a bit and down for condominiums, but still within relatively stable price ranges. The first-time homebuyers federal tax credit has been helpful in raising buyer awareness."
There were 281 sales of single-family homes during October, or almost 16 percent more than a year earlier. It was the highest volume since March 2008, or 19 months.
- The median price of single-family homes was $605,000. Although that was down from last October's median of $625,000, it marked a high point for this year. The median is the point where half of the prices are below and half are above.
- There were 381 sales of condominiums, the most since May 2008, or 17 months.
- The median condominium price was $295,000. That compared with the year earlier median of $325,000.
Kapahulu/Diamond Head, Kahala and Hawaii Kai posted their highest single-family home sales of the year.
In October, months of remaining inventory for single-family homes fell to 4.6 from the prior year's 9.8, according to the HBR. Likewise, remaining condominium inventory fell to 4.8 months from the year-ago 8.7 months, HBR said.
The Board publishes very extensive statistics for every community on Oahu. Contact me for your free copy.
Barbara Abe, Realtor