Jumping off the condo bandwagon

How are investors getting financing?

I have to admit the recent sales numbers for condominiums from the National Association of Realtors had me scratching my head.

According to a May report (published in June), existing condominium and co-op sales increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April but nevertheless were 8.9 percent below the 571,000-unit level in May 2008.

What surprised me was the amount of volume left in the condo market, especially when it’s so difficult to get financing for one of these. Indeed, in some places like South Florida, it’s probably easier to climb through an eye of a needle than to get a lender to offer a mortgage for a condominium.