Condo Sales on the Rise in the Ocean State

Condominium sales have really come back strong this year, according to the Rhode Island Association of Realtors.   Starting with a whopping 60% year over year increase in January, sales were up nearly 32% in the first half of the year, and the prices continue to rise, 37% in the first quarter and 28% in the second. Condos are appealing to a broad section of the home ownership spectrum, from first time buyers seeking affordability, to young professionals wanting to be close to urban centers and empty nesters looking for ease of life style. It’s a matter of finding the best fit for you. A house gives you more independence, but also greater responsibility. A condo has more regular expenses and freedom from snow and   lawn care, as well as   exterior maintenance. There are other considerations when buying condos as well.   If you are using FHA financing, the complex must be HUD approved. If the complex is not HUD approved, you cannot use a low down-payment FHA loan to purchase. Fannie Mae and the FHA, generally won’t back a mortgage in a building where more than half the units are rentals, or if one landlord owns more than 10 percent of the units. They also want the homeowners association to be on firm financial footing. Research the condo association to see if there are any pending lawsuits, or deferred maintenance issues that could result in a special assessment.   If you do opt for a condo, don’t let the due diligence overwhelm you, a little research will pay off with the peace of mind of knowing you have purchased a unit in a well-run association. This week's Real Estate Insight:  While there may be many differences between house and condo ownership, the goal is always the same – finding the best home for you. Situations can change and you can always sell, so it is best to work with an experienced agent who can help you make the best informed decision you can.