by Calculated Risk on 5/14/2008 05:29:00 PM

The NY Times has an article on the negative externalities of some Condo Life: Foreclosures, Higher Fees and Mowing the Lawn

When people buy condos, they expect their monthly fees will cover many of the responsibilities that they would otherwise have as single-family homeowners, like cutting the grass and paying the water bills. Now many find themselves nagging each other in the hallways to pay their assessments and adding special fees while haggling over chores. In Miami, Chicago and San Diego, condo owners are adjusting to the economic woes, sometimes by mowing themselves and working shifts for building security — all while lamenting their lost community.

The article also mentions that condos are not included in some of the housing stats - something I've mentioned several times. Many condos (especially high rise) are not included in the new home sales and inventory report from the Census Bureau (they are included in housing starts).

Many of the numbers compiled on home sales specifically exclude condos, which account for one out of eight homes in the nation, and that missing data may be masking just how weak the housing market really is. Sales of existing condo units were down 26 percent in March from a year earlier, compared with an 18 percent decline for single-family homes, according to the National Association of Realtors.

The pain in the condo market, mostly urban areas, may not only be deeper than the rest of the housing market during this downturn but more prolonged.

For those areas with a large number of high rise condos, the supply of housing units could be much higher than the Census Bureau statistics would indicate.