As part of my marketing efforts, I work to compile data for condo sales in various towns in Connecticut. I try to pick towns that have a lot of condominiums to provide comparison data between projects that are FHA approved condos and those that are not.
Middletown CT Condo Data for 2013
Middletown has 38 condominium projects of which 11 of them are approved with FHA. Although this is a relatively high percentage compared to other towns that I have investigated, before FHA’s changes in 2011 there were 25 projects on FHA’s Approved Condominiums List.
Analysis of Data
I typically divide the listing data into those in FHA-approved condos and those that are in non-FHA projects. For my business, it’s good to analyze the difference between the two.
29% of the condominiums in Middletown are approved with FHA but accounted for 44% of the total condominium sales in 2013. The average and median sales prices were comparable between the FHA and non-FHA condominiums as were the average and median active days on the market.
However, of the sales in non-FHA projects 19 of the 46 sales were under $90,000. Units for sale in this price range are very attractive to investors for many reasons. Having an FHA approval for these projects wouldn’t impact investor-purchases. These sales were balanced out in the average by 4 sales of over $270,000, 2 of which were more than $300,000.
In contrast, only 6 units in FHA-approved projects sold for under $90,000.
The largest contrast between the FHA and non-FHA projects is in the ratio of sold listings and expired/canceled listings. In FHA-approved condominiums, units were twice as likely to sell as they were to expire. In non-FHA projects, closed sales only slightly outnumbered expired listings.
Of the 38 expired listings in non-FHA projects, 23 of them are in the price range of $9,000 - $200,000, which is FHA’s sweet spot for loans. 48% of existing FHA loans nationally are in this price range. One would have to wonder if having an FHA approval would have impacted these listings.
It is also worthy to point out that there were 644 single-family home listings in Middletown in 2013. Of these, 227 were in the typical condominium price range of $0-200,000. Of these, the closed vs expired ratio is 59% to 31%, respectively. This is on target with the ratio for condominiums in FHA-approved projects and far better than listings in non-FHA projects.
*NOTE: Closed, Expired and Cancelled listing percentages are calculated by removing the currently Active and Pending Sale data to account only for listings that are no longer on the market.
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!