I recently compiled the data for condominium sales and came to a very definitive conclusion: Manchester Connecticut Condos NEED to get FHA-approved. And, I’m not just saying that because I help condominiums to get approved with FHA.
I have done a lot of market research in Connecticut in order to provide data to contrast FHA-approved and non-FHA condominiums. In most towns in which I have done research, the data point to an obvious benefit by displaying better sales figures (more closed sales, fewer expired listings) in FHA-approved condominiums. This has been true in every town except one.
However, Manchester’s data provided another interesting discovery altogether: the average list price of expired listings was nearly $30,000 higher than the average for closed sales in non-FHA projects.
First off, in FHA-approved condo units, the average list price was $131,000; the average close sale price was $130,000; and the average listing price of an expired listing was $127,000 in 2013. The median values were also in the range of $130,000 for list, sold and expired listings. These numbers are all right in line with each other; no major variances here.
FHA’s “sweet spot” for loan amounts is in the range of $100,000 - $250,000 nationally so these closed sales fall within this range. It all makes perfect sense.
However, in projects that are not FHA-approved, the average list price of units was $119,000; the average sale price was $95,000; and the average listing price of expired listings was $123,000. This displays that the majority of the units sold in Manchester were under $100,000 (suggesting investor-purchases) and the majority of expired listings were over $100,000, which are more commonly owner-occupied purchases.
The median (middle number) data further demonstrates this conclusion. The median list price was $116,000; the median sale price was $60,000; and the median expired listing price was $124,000. This means that there were as many units sold for less than $60,000 as sold for more than this price.
The average and median expired listing prices fall in FHA’s sweet spot for owner-occupied purchases and is close to the average and median sales prices for the units in FHA-approved projects.
There can only be one conclusion drawn here: any condominium projects whose unit values are in the $100,000 to $200,000 NEED to get approved with FHA. I would wager that if these particular projects got approved with FHA, more of their listings would result in closed sales and fewer would expire.
To further this point, of those projects that are or were previously approved with FHA, the average FHA concentration is 20%. Many of them have an FHA concentration of 25% up to 38%. Thus, not only are the units in these projects selling, FHA financing is being utilized.
Condominium projects in the majority of towns in CT would benefit from an FHA approval. It has been shown time and time again that they bring more buyers resulting in more sales and fewer expired listings. But, in Manchester CT Condos NEED to get approved with FHA to protect the values of their units.
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 email@example.com 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!