I did an extensive search for a client who was pretty dead set on buying a downtown condo about 3 months ago. He had some really strong connections with alot of attorneys as he is one himself as his biggest concern was liability with regards to builders defects lawsuits in some of the more recent developments. Moreover with the financial stresses on some of the original developers his concern would be a liability that the HOA would have to assume if the original builder was insolvent.
That alone did not stop him from buying but it did make him quite wary. I believe we could very well see more substantial downward movement downtown. It is still the hallmark of the excess speculation that occurred. Per the previous post one sobering thing you can do is have your realtor bring you downtown and take a look at the closets that house the lockboxes. They are full and in some cases overflowing.
No doubt the HOA fees are outrageous and you should be quite wary of them. Of course foreclosures will add to the stress of the HOA and possible assessments could be levied if the budget needs to maintain a certain reserve level. Asking what drives the rates could be answered in a speculative manner. To be honest you would be better served looking at the HOA financials for an individual development that you would be interested in for your purchase.
At any rate I can see at least another 20% downtown with a possibility for more after it is all said and done. Just my guess for what it is worth.
