Ominous signs for new condos

 
From the November issue: In recent months, buyers’ struggles to finance new homes have dominated the headlines, but a far more ominous problem has now reared its head among prospective buyers of the city’s new condominium developments.Despite buyers’ desire to purchase the apartments, banks — under intense pressure to ensure returns on their loans — are increasingly unwilling to write mortgages for some new buildings, especially those that have sold only a small percentage of their units. That, in turn, makes it harder for the buildings to sell out, leading to a chicken-and-egg problem that’s likely to pose significant obstacles for new developments in the coming months.