RG group raises Rs 170 crore from PE firm for Noida realty project

New Delhi: Real estate company RG group has raised Rs 170 crore from a private equity firm for its housing project in Noida and clear dues to the development authority.

The Delhi-based realty firm has developed 14 commercial projects in the national capital. It is currently building two housing projects in Noida and Greater Noida.

“We have raised Rs 170 crore from a private equity firm. The fund will be utilised in our existing project at Noida,” RG Group MD Rajesh Goyal told PTI.

He declined to name the private equity firm citing confidentiality agreement.

The company has constructed 1,440 apartments in Noida project ‘RG Residency’ and the same has been handed over to the customers.

However, the registration of properties has not started as the company has some pending dues with the Noida development authority.

Goyal said the funds will be partly used to clear dues of the Noida authority, enabling buyers to register their properties.

RG group raises Rs 170 crore from PE firm for Noida realty projectThe remaining amount will be utilised in completing some remaining work in this project, he added.

“Our focus is to deliver the projects as we have promised. Our project in Noida has already been delivered and possession has been offered. By clearing off the dues we become applicable for getting the registry process started,” Goyal said.

Under the re-scheduling process initiated by the Noida authority, RG Group will clear 25 per cent of its dues and rest would be paid by regular instalments until 2020-21.

Apart from this project, RG group is developing another residential project ‘RG Luxury’ located in Greater Noida (West) where 2,145 flats are being constructed.

Mumbai real estate: `launches in Q1 of 2017 dipped by 24%’

Mumbai: The real estate project launches in Mumbai dropped by 24 percent in the first quarter of 2017, a recent survey said.

Launches dropped by 24 per cent at 4,900 units against 6,500 a year ago, a study conducted by the property consultancy firm Colliers International found.

The trend may continue for a short term as developers are adjusting to the new Real Estate Regulation and Development Act (RERA) rules, it said.

“The developers have been selling projects and units based on the marketing plan and layouts, and super built-up areas often represent a loading on the nature of amenities a project offers. Since the FSI norms and rules have been differed from sale plan and chargeable areas of projects, it is posing a challenge for developers,” Colliers International Executive Director, Office Services and Investment Sales, Ravi Ahuja said.

Developers now have to upload on website all sanctioned and approved plans and the buyer can do diligence and be privy to artificial mark-ups in such super built-up areas that sometimes go as much as 40-60 per cent higher than carpet area.

Mumbai real estate: `launches in Q1 of 2017 dipped by 24%'“There is hesitation of under-construction projects sold prior to RERA to follow RERA rules,” Ahuja added.

The rules stipulate that all new under-construction projects must register with the authority by July 31, 2017. After that date, developers without registration won’t be allowed to advertise or sell projects in the market.

“With the RERA becoming a reality now, it is important for developers to prepare for the changes promptly. The change in the real estate cycle may act as an entry barrier for small players and speculators. We believe improved project planning will help developers avoid delays and manage project funds efficiently,” Colliers International Senior Associate Director, Research, Surabhi Arora said.

Leasing the Heavy Equipment You Need for Your Construction Company’s Projects

Most construction companies want to keep operational costs as low as possible. They want to avoid buying machinery and equipment that they may only use a few times out of the year. When your company is facing a large industrial project and you need equipment like overhead bridge cranes, wrecking balls, earth movers, and more on the job site, you still may not want to spend the money to buy one of these machines brand new. You can save your company money and still get the job done by renting the equipment you need for the project at hand.

Working with an Authorized and Skilled Leasing Company

Part of keeping costs low requires that you take on as little liability yourself during the equipment lease. If you rent from a shady and questionable company, you could miss out on important protections that exonerate you in case something goes wrong with the equipment or at the job site.

A skilled leasing company will have the protective clauses in your contract to keep your costs low and also take on some of the more important liability for the machinery, such as its upkeep and repair during its use for the project. The company also will have trained staff who know how to service the machines and also set them up safely on the job site for you. Before the staff members leave, they also will test the equipment to make sure it is ready to go and safe to use.

Another aspect of avoiding liability and keeping costs low involves the safe transport of the equipment to and from the job site. You and your company may not have the resources needed to haul such massive pieces of machinery across town to the job site.

Customer Self-Service

As helpful as the company can be in helping you obtain the machinery you need, you can also help yourself by setting up a customer account. By using the customer portal on the website, you can service your own account and take care of details like payments at your convenience.

You can also contact the company at the number provided on the website. The contact tab is at the top of the page.

Renting equipment is cheaper than buying it. You can get the machinery you need today from a skilled equipment leasing company.

Discovering Flats in Navi Mumbai Made Easy

Owning a rich level in the prime area of Mumbai is no more a far off dream? With the coming up of new private tasks, manufacturers are building pads in Mumbai with world class comforts at a value that one can manage the cost of effectively. Home purchasers these days while purchasing their fantasy house select pleasantries, for example, swimming pool, kids’ pool, amphitheater, games ground and that’s only the tip of the iceberg. Be that as it may, on the off chance that you are looking for a very much outfitted 3/4 BHK loft with great rating at simple installment alternatives then scan taking the assistance of realty sites.

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Pic Credits: Akshar El Castillo

What number of us looks for the help of realty locales while searching for a level or property? Just a couple. Realty sites are for sure useful and help home purchasers in discovering pads with particular to the area, network, neighborhood, and spending plan. With its data and property postings, the entries help home purchasers to settle on sound choices about purchasing a level.

The realty locales join purchasers and merchants in a simple way. Depending on land operators in discovering a level in Mumbai could be a costly undertaking as a result of the robust commissions they charge for their administrations. By exploiting realty entries, purchasers can straightforwardly contact merchants and along these lines make a decent arrangement without paying commission.

Realty locales offer a large group of administrations to make purchasing and offering properties or land a bother free affair. Makaan.com, a main realty site that unites purchasers and dealers, makes a special case by sending cautions to its clients’ inbox. It let them stay upgraded on the evaluating and properties inclining in Mumbai and other significant urban areas. The site permits people to scan for property for offering so as to purchase, offering, leasing or PG easy to understand look choice. Furthermore, home purchasers can likewise compute they’re compared regularly scheduled payment (EMI) by utilizing the basic apparatus made accessible on the site.

Realty destinations have now disentangled discovering pads in Navi Mumbai or a planned Navi Mumbai property at reduced rates. The locales offer information of different properties in Mumbai or Navi Mumbai implied for offering/leasing/rent simply through snaps of the mouse. Exploiting a famous realty entrance you can even convey a simple and viable property exchange.

Realty business of Mumbai and Navi Mumbai termed as forceful and quickly developing. The costs of properties and pads in Mumbai met to a portion of the world class urban communities, for example, New York, Paris, London and Las Vegas. Discover your fantasy house with a component rich realty site and find it by district, territory, value, courtesies, and accessibility.

Akshar El Castillo – Apartment for Sale at Nerul, Navi Mumbai

A Premium task on the Prestigious Palm Beach Marg, having 27 stories with extravagance lofts in the scope of 6,700 Sq Ft to 11,500 Sq. Ft. (approx) and condition of workmanship luxuries without precedent for Navi Mumbai of the worldwide standard. To give some examples i.e. Swimming Pool connected with each level & Ample Car Parking and numerous another one can expect in the premium tower. Akshar Group brings a flawless equalization of joy and joy & ldquo El Castillo & rdquo. The undertaking situated at Palm Beach Road, Sec 6, Nerul, and Navi Mumbai. It offers 4.5 & 6 BHK private lofts. Lofts zone is going between 6665 12000 sq. ft.

Akshar Group has devoted and qualified colleagues who take care of smooth working of each office. We pay most extreme vital and take compelling consideration of our customers all through the purchasing procedure.

Housing by the numbers: Something is weird

Homes are selling at a faster clip this spring, but something still isn’t quite right in housing.

Thanks to the epic real estate crash of the last decade, market watchers and reporters now have a whole cottage industry of data providers to track every move in home sales and mortgage financing. But looking at all those numbers now, something doesn’t add up to a “normal” housing market.

Mortgage rates are rising, up pretty significantly in just the past two weeks from an average 3.6 percent on the 30-year fixed to just over 4 percent. In the first three months of the year, rates were lower, prompting a refinance “boomlet.”

'For Sale' sign is displayed outside of a house in Oradell, New Jersey.

Lower rates, however, did not translate into more mortgages to purchase a home. In fact, purchase loan originations were down 25 percent in the first quarter from the previous quarter and up only 1 percent from a year ago, according to new numbers from RealtyTrac.

“The purchase loan market remained largely missing in action despite tepid growth from a year ago. The prime buying season still remains ahead, providing some hope that first time homebuyers and other traditional buyers relying on traditional financing will come out of the woodwork in greater numbers in the coming months,” said RealtyTrac Vice President Daren Blomquist.

But in analyzing the numbers, Blomquist admitted that FHA insured loans, a favorite among first-time buyers due to their low minimum down payments, saw weak volume. Granted the first quarter was still winter, but the comparison to a year ago points to weakness, especially given that the economy has supposedly improved in the past year.

RealtyTrac also recorded the highest volume of nonowner occupant buyers (largely investors) in the first quarter since 2011. Investors are still in the game, and some are now starting to use mortgages again for their purchases, though that share is still small.

“Investor activity continues to represent a disproportionately high share of all home sales activity in this housing recovery, but unlike the past three years the large institutional investors are backing out while the smaller, midtier and mom-and-pop investors are remaining active,” said Blomquist.

That dovetails with a report from CoreLogic showing that all cash sales are still inordinately high. At nearly 38 percent of all sales, cash is still king. That’s down from 46.5 percent at the worst of the housing crash in 2011, but it’s still significantly higher than the normal 25 percent share. Some states, like New York, Alabama, Florida and Indiana are seeing around half of all sales in cash.

Cash may in fact play a bigger role in the coming months, as weak inventory leads to more bidding wars. All-cash buyers have a significant advantage in the competition, as sellers would rather not have to rely on borrower buyers, especially as home prices rise more dramatically, and homes don’t get appraised at deal values.

Home prices have been gaining steam this spring, rising at a far faster pace than income and employment growth. April was the third-straight month that prices grew above 6 percent, according to Redfin, a real estate brokerage. Even with three-straight months of increased listings—about 10 percent more each month, according to Redfin—supply is not keeping up with demand, not even close.

The numbers also don’t speak well of credit availability. Forty-seven percent of real estate industry experts polled by Zillow said lending is still too restrictive. Tight credit, combined with higher home prices, continue to sideline first-time buyers, at least in larger metropolitan markets. Good news for the rental market, but not for home ownership.

“Renters face several challenges,” said Zillow Chief Economist Stan Humphries. “They need enough money on hand to start to buy homes. Even as mortgage credit becomes easier to obtain and home prices level off, renters are confronted with slow income growth and high rental rates. In addition, they face sometimes fierce competition for very few available homes in the market.”

Still another survey, of demand, finds that since the end of the recession in 2009, the housing market’s capacity to support sales activity has nearly doubled. That is, people’s ability to purchase a home. This points again to the supply problem at the heart of housing today.

“The fact that actual existing home sales volumes were lower than market capacity, yet house prices are increasing, indicates that the market is experiencing supply constraints more than demand constraints,” said Mark Fleming, chief economist at First American.

Put simply, the housing market is underperforming because both homebuilders and home sellers are underperforming. Housing starts are still well below even historical norms, despite pent-up demand, and sellers, despite gains in home equity, are still not willing to list at current prices.

“Existing-homes sales are currently below expectations because it’s hard to be a buyer if at first you can’t be a seller,” said Fleming. “Without the constraint of insufficient equity, many more homeowners would be willing to sell their homes, especially given the continued low interest rate environment and increased certainty in labor markets.”

The home ownership rate now stands at the lowest level in 25 years, and it continues to drop each quarter it is measured. Next week the National Association of Realtors will report April sales of existing homes. The headline numbers will likely be better than they were a year ago and as compared to the previous month; one number, however, does not tell the whole housing story.

Home builder sentiment drops 2 points in May

In the heart of the spring housing market, home builders are less optimistic.

Builder confidence slipped two points in May on a monthly survey from the National Association of Home Builders (NAHB). It now stands at 54. Fifty is the line between positive and negative sentiment.

A contractor works on a townhouse under construction at the Pulte Homes Inc. Pepper Lane development in San Jose, California.

A contractor works on a townhouse under construction at the Pulte Homes Inc. Pepper Lane development in San Jose, California.
“Consumers are exhibiting caution, and want to be on more stable financial footing before purchasing a home,” said NAHB Chief Economist David Crowe. “On the bright side, the HMI component measuring future sales expectations has been tracking upward all year, mortgage rates remain low, and house prices are affordable. These factors should spur the release of pent-up demand moving forward.”

Perhaps they should, but they haven’t so far, as potential home buyers are still facing tight credit conditions and home prices are rising faster than income and employment growth. Sales of newly built homes in March, which represent signed contracts not closings, fell just over 11 percent month-to-month, according to the U.S. Census. Mortgage applications to purchase a home were flat in April, according to the Mortgage Bankers Association, suggesting April new home sales might be lower. The average loan size for a newly built home soared to a record $315,670, as builders continue to focus on higher end buyers, not entry level consumers.

Builders are less confident overall, but their sentiment was strangely mixed, again indicative of the still floundering recovery. Of the NAHB index’s three components, sales expectations in the next six months rose one point to 64, buyer traffic dropped one point to 39, and current sales conditions fell two points to 59.

Regionally, on a three-month moving average, builder confidence in the South and Midwest each rose one point to 57 and 55, respectively. In the Northeast, it fell by one point to 41, and in the West it dropped three points to 55.

US housing starts, permits surge in April

U.S. housing starts jumped to their highest level in nearly 7-1/2 years in April and permits soared, hopeful signs for an economy that is struggling to regain strong momentum after a dismal first quarter.

The strength in housing is in stark contrast with weakness in consumption, business spending and manufacturing, which have prompted economists to lower their second-quarter growth estimates and raised doubts that the Federal Reserve will raise interest rates before the end of the year.

Groundbreaking surged 20.2 percent to a seasonally adjusted annual pace of 1.14 million units, the highest since November 2007, the Commerce Department said on Tuesday. The percent increase was the biggest since February 1991.

March’s starts were revised up to a 944,000 unit rate instead of the previously reported 926,000 unit pace.

Starts for single-family homes, which accounts for the largest share of the market, hit their highest level since January 2008. Groundbreaking for the volatile multifamily segment also recorded hefty gains last month.

Permits for future home construction jumped 10.1 percent to a 1.14 million-unit rate, the highest since June 2008. Permits have been above a 1 million-unit pace since July.

Economists polled by Reuters had forecast groundbreaking increasing to a 1.02 million-unit pace and permits rising to a 1.06 million-unit rate last month.

The dollar rose to a session high against the euro on the data, while prices for U.S. Treasurys turned negative.

U.S. stocks index futures were trading higher, also after the European Central Bank suggested it would speed up its bond buying program.

Housing firming

The firming housing market also buoyed profits at Home Depot. The world’s largest home improvement chain by sales reported better-than-expected quarterly profit and sales, and raised its full-year sales and profit forecast on Tuesday.

While the robust data probably overstates the health of the housing market, the signs of strength fit in with views that a housing rebound is under way.

There is cautious optimism that housing, which has seen an acceleration in home sales and prices, will combine with a tightening labor market to lift the economy out of the soft patch hit at the start of the year.

The government reported last month that gross domestic product grew at a 0.2 percent annual pace in the first quarter. But weak March trade and inventories data suggested the economy actually contracted.

The government will publish its revised GDP data next week. Output at the start of the year was held down by a harsh winter, a strong dollar, a ports labor dispute and deep energy spending cuts in the first quarter.

Although growth is picking up, retail sales and industrial production data for April suggest the rebound is modest.

In April, groundbreaking rose in three of the four regions, but fell 1.8 percent in the South, where most of the home building takes place.

Single-family homes groundbreaking gained 16.7 percent. Groundbreaking for the multi-family homes segment increased 27.2 percent.

Single-family permits increased 3.7 percent last month. Multi-family permits surged 20.5 percent.

A house that thumbs its nose at the drought

Imagine a home that could recycle two-thirds of the water it uses. No need to imagine. New technology to do just that was recently approved for use in drought-parched California, and the company behind it claims it could be looking at a $15 billion business ahead.

“In five years time, every new home will have a water recycler in it,” said Ralph Petroff, chairman of Nexus eWater, the Australia-based company behind the technology.

The system, which lives under two manhole-like covers on the side of the home, pulls in soapy water from the house—that is shower, dishwasher, laundry and sink water, not toilet water—and then sends it into a cleaning system. What comes out, so-called “gray water,” is water that can be used for irrigation and for flushing toilets. The water cannot be used for washing or drinking.

California-based KB Home bought into the technology and just announced that it will be standard in over 50 homes in a new San Diego development. It is also demonstrating the system in model homes in Sacramento and Lancaster.

The cost is just under $10,000 per home to install, but Petroff said that price should go down as more builders buy in and the technology becomes more common. He sees it as having even more potential than solar panels.

“There is no alternative to water. That’s what Californians are discovering every day,” said Petroff.

In Irvine, California, developer Emile Haddad, CEO of Five Point Communities, an offshoot of Lennar, is behind the construction of thousands of new homes by various public builders. Water is not a huge problem because the Irvine water district already recycles its water through purple pipes that run through all new communities.

Read MoreHouses are about to get really, really smart

“Irvine has been way ahead in its thinking,” said Haddad, who sees the severity of this drought as an opportunity, a tipping point, for new technology in homebuilding.

“I think what we’re going to see is a much more surgical approach and we are going to put together a plan that deals with water hopefully once and forever and we’re going to see in 20 years that we talk about drought as something we all can live through,” he said.

KB Home is teaming up with the U.S. arm of an Australian company, Nexus eWater, which can recycle 2/3 of the water you use in your home on site.

KB Home is teaming up with the U.S. arm of an Australian company, Nexus eWater, which can recycle 2/3 of the water you use in your home on site.
At the Irvine water district, there is some skepticism about in-home gray water technology, since the area already recycles its water. That water, however, does not go out of the home and directly back into it. Recycled water is sold off for commercial real estate use, agriculture and some residential housing.

“Individual homes need to look at it community by community,” said Paul Cook, general manager of the Irvine Ranch Water District, who is concerned that home water recycling in some places is as redundant as it is costly.

Read MoreUS housing starts, permits surge in April

Builders, faced with a drought with no clear end in sight, are doing all they can to make their homes as water and energy efficient as possible. Not only do they have to, but it makes them more competitive.

KB Home is teaming up with the U.S. arm of an Australian company, Nexus eWater, which can recycle 2/3 of the water you use in your home on site.

KB Home is teaming up with the U.S. arm of an Australian company, Nexus eWater, which can recycle 2/3 of the water you use in your home on site.
“The biggest advantage is that new homes are way more water efficient; that they are on smaller lots with very little landscaping, they can put in very drought resistant plants, and somebody concerned about their water bill would have a huge advantage buying a new home over a resale home,” said John Burns, founder of John Burns Real Estate Consulting.

Burns, a resident of Irvine himself, saw his water bill go up 30 percent in the last few months and has been warned that it could go up more if he doesn’t curtail usage. While new construction is more expensive, he says California buyers are more willing to pay more up front in order to save in the long run. Builders know that, and that is why prices are not coming down.

“They don’t look to California for volumes, they look to California for good margins and good price appreciation,” said Burns.

So far there has been no moratorium on new construction, just delays for permits, which is costly for the builders. Burns and Haddad agree that the state would take a big risk stopping new home construction, as supply is already severely limited, demand is rising and prices are soaring again.

Housing stocks set to double—here’s why

The news that housing starts rose 20 percent in April serves as just the latest evidence that housing is set to roar back in a big way, according to Fundstrat Global Advisors’ Tom Lee. But the real key to the rally will be young people buying homes.

Lee notes that household formation numbers compiled by the U.S. Census have recently started to break out. But the usually bullish strategist says they still have a long way to go.

Based on unusually low household formation numbers, “there’s a ton of people living in basements,” Lee said Tuesday in an interview with CNBC’s “Trading Nation.” “Two quarters of pretty decent household formation isn’t getting everybody out of the basement. I think this means we have multiple years where household formations are well over 1.3 million, 1.4 million.”

Of course, if many more young people start buying homes, that’s a natural boon to the companies building them.

“I think housing and housing-related stocks are all buys,” Lee said. “If housing starts go to 2 million, which is where we think they’re going to go, the builders are going to rise almost 150 percent from here.”

And this all has very positive ramifications for the broader economy and market.

“I think it’s a very bullish sign because when you look at housing cycles… there’s so much revenue and activity generated by housing that if starts go to 2 million, it’s several hundred billion dollars of incremental revenues for that sector.”

Lee isn’t the only bull crowing about the housing market these days.

Canaccord Genuity equity strategist Tony Dwyer made a similar point Tuesday in a note to clients, writing that the “acceleration in the number of millennials turning 30 over the next six years … could ramp household formations,” particularly given the “positive employment outlook” and “low household debt service ratio.”

If young people develop a taste for houses, then, the outlook forhomebuilders could begin to look very bright indeed.

Denver housing: Rocky Mountain high and HOT

When Christopher Simmons began shopping for a home in Denver six months ago, he had no idea the risk and the frustration it would take to get one. The 27-year-old had good credit and cash to put down, but that was not enough in this red-hot market.

“One of the hardest parts is that I travel for work often and am typically out of town on the weekends, and houses are being listed Thursday afternoon, offers due by Sunday afternoon and responses back on Monday,” said Simmons.

He lost eight houses he liked, simply because he was out of town. He lost two others in bidding wars, one of which had 18 bidders. Finally, Simmons went under contract on a small home in a transitional neighborhood, but only after beating out five other bidders. He wrote a letter to the owners, describing how he had grown up in the neighborhood, and then he added a risky tactic.

“I waived the inspection and the appraisal contingencies on all of the offers I made and on this one as well,” said Simmons.

The supply of homes for sale in Denver is down 15 percent from a year ago, the number of days on the market for homes has fallen 31 percent and the median home price is up 11 percent, according to the real estate company Live Urban Real Estate. Homes are flying off the shelves, and bidding wars are the new normal.

Skyline of Denver, Colorado

“Prices are going crazy. Multiple offers, love letters, videos, all kinds of things to appeal to a seller in order to make yours stand above all the others,” said Denver real estate agent Jill Schafer.

Supply here is low for a number of reasons. Employment is growing at more than 4 percent versus a year ago, home builders really didn’t ramp up production after the recession and land prices in the Denver area are at an all-time high, according to John Burns Real Estate Consulting. Most of the available land is out by the airport, where sales are not particularly strong.

Another issue plaguing the market is a lack of condominiums. Demand for condos was weak after the housing crash and foreclosure crisis, and then a Colorado law passed in 2010 making it easier for homeowners’ associations (HOAs) to file class-action lawsuits against developers for even the smallest construction defects.

“If you can’t put a project-specific insurance policy in place to protect yourself against inevitable lawsuits, you won’t build condos,” said Christopher Waggett, CEO of D4 Urban, a Denver real estate developer, who has been fighting to have the law changed.

Standing in front of a huge construction site of rental apartments, Waggett said there is a multifamily construction boom in Denver, but just 2 percent of it is condos, and those are only on the very high end. That’s because in order to afford the insurance policies against litigation, developers would need to build million-dollar units.

“We’ve had a situation in Denver for the last five years, where vacancy rates on multifamily have stayed below 5 percent and rental growth has been above 7 percent. That is not a normal market,” said Waggett.

Rent growth is great for apartment developers, not so great for Denver renters, many of whom are young millennials coming to town for new jobs with Google and Apple.

“I don’t think incomes have been rising at that pace, and I think we all know what happened in 2008-09 where we got an imbalance between incomes and value of property, in this case rent. There is a serious issue,” added Waggett.

Over in the tony Cherry Creek neighborhood of Denver, a condo building is going up, and it is more than 80 percent sold, even though it doesn’t open until August.

“If we were 50 percent sold, we’d be just outrageously happy, but at 80-85 percent where we are right now, this market is so incredibly tight for all real estate including condos. It’s just been amazing,” said Roy Kline, managing director of Western Development Group.

Most of the condos at Kline’s 250 Columbine list at more than a million dollars, with the penthouse going for $5 million. That, he said, is what it takes to insure his company against litigation, and to test the project vigilantly for any potential defects..

Christopher Simmons has a home under contract in Denver after losing out on others in bidding wars.

Christopher Simmons has a home under contract in Denver after losing out on others in bidding wars.
“We have peer reviews, have people looking over each other’s shoulder continuously to make sure everything gets done right,” said Kline, who described going over the top by beefing up the building for sound attenuation and water resistance.

Kline, however, expects there still may be lawsuits, even though not one owner has moved in a suitcase. Lawyers, he says, target new condos, hoping to find anything wrong.

“The HOA will be approached by a litigation firm, and they’ll ask them, maybe we can help you if you have some issues with your building, and they’ll go in and literally end up taking a unit apart and looking for all the little defects in it,” said Kline.

Some say the lack of condos is less about the law and more about lack of demand, but that argument is losing steam, as home prices soar amid stiff competition.

With rents continuing to rise, it is already cheaper to buy in this market than to rent, according to Schafer, and that will only put more pressure on single-family home builders and condo developers to ramp up production. Until then, buyers will continue to bid.