As part of my marketing efforts, I work to compile data for condominium sales in towns in Connecticut. My intention is to use the data to demonstrate the positive effects of obtaining an FHA Condo Approval.
I was surprised to find that there are only 23 condominium projects in East Hartford; some neighboring towns have twice as many. In 2011, when all condominium projects were required to get recertified with FHA, there were 11 projects on FHA’s Approved condominiums list. That is a fairly high percentage from what I've seen.
I found it even more surprising that only ONE of the condominiums is currently approved with FHA. There have been two others that have applied for approvals but have been rejected, primarily for financial reasons. Hopefully, these and others will make a more concerted effort to get approved.
I say that because the sales figures from a closed-vs-expired approach it not flattering. The likelihood of a condominium unit listing expiring or being cancelled is slightly greater than its chances of selling.
In 2013, there were 74 condominium listings in East Hartford. Of these, only 2 were in the FHA-approved condominium; 1 sold and 1 expired.
Of the 72 in non-FHA projects, 28 resulted in closed sales (39%), 29 expired (40%), 6 are still active, 2 are under deposit and 6 were cancelled.
Of the 28 sales, 18 of them had sales prices under $90,000. Drawing on my experience in real estate, condominiums in this price range are very attractive to investors for many reasons. I would surmise that most of these purchases, if not all, were to investors.
Of the 29 expired listings, 19 of them were listed for sale in the $99,000 to $200,000 price range. 48% of existing FHA loans are in this price range. By not being on the FHA approved condominiums list, these condominiums are drastically reducing their buyer pool and, as a result, they are not selling.
Expired listings result in unit owners lowering their prices which reduces the market values of other units in the community. The bottom line is that condominium associations in East Hartford, CT, need to seriously consider obtaining an FHA condo approval. The values of their units depend upon it.
The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA. We have assisted nearly 200 condominiums and we can help your association.
ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.
Please contact us with any questions regarding FHA or VA condominium project approvals. You can email me at firstname.lastname@example.org or call me at 404-433-4565. I will be happy to answer any of your questions.
FHA/VA Condo Approval Specialist
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Check out our article in Common Interest magazine on page 19!