Condominium Market Data for Manchester, CT
Because I had so much fun (sarcasm intended) compiling the market sales data for South Windsor, I decided I would tackle a larger town in the area. Manchester, CT, is our neighbor to the south and a town with a high concentration of condominium projects.
Condominium Market Data for Manchester, CT
There are 56 condominium projects in Manchester, CT. Of those, 45 of them have been approved with FHA at one time. Currently, there are 14 condominium projects approved with FHA. Incidentally, our office has handled 7 of these approvals and we are currently working on others.
Analysis of Data
I divided the numbers into those in FHA-approved projects and those in non-FHA approved projects. For my business, it is good to analyze the difference between the two.
Even though only 25% of the projects in Manchester are approved with FHA, 33% of the sales in Q4 of 2013 were in FHA-approved projects. This may or may not speak to the benefit of being approved; there could have been a higher percentage of listings in these project versus non-FHA projects. We will have to see if this trend continues.
The average FHA loan concentration in the projects that are FHA-approved is around 16% with the range from 0-33%. The larger projects (20 units or more) have an average FHA loan concentration of 16%. I separate the larger projects because the ratio on a small project (of say 6 units like Pine Street Condos) can easily be skewed by 1 unit. The largest FHA-approved project has 214 units, 31 of them are encumbered by FHA financing.
Typically, I have seen shorter marketing times in FHA-approved projects but in the previous quarter in Manchester, they appear to be about the same.
I will not speak to the difference in sales prices between those in FHA-approved projects versus non-FHA projects. One reason for this is that any comparison of this sort would not be valid. I say this because the sales prices vary in condominium from project to project.
For example, a 1000-sqft unit in a converted apartment building on a busy street could fetch a different price than a 1000-sqft townhouse-style unit in a project that is spread out over 20 wooded acres of land. Analyzing the data to provide an “apples-to-apples” comparison of sales prices is beyond the scope of this article.
Initially I had intended to compare the list price and sales price of the units but this speaks more to the compentency of the agent and the condition of the unit than it does to the relative benefit of being FHA-approved.
NOTE: In the data for Active Listings in Non-FHA approved projects, there were two high-priced listings, one listing at $329,900 and one at $289,900. These had the potential to skew the data. However, because there are 12 listings under $75,000, when all were omitted (dropping the highest and lowest) the average and median came out to around the figures presented in the table.
Currently, there is only 1 unit under deposit in FHA-approved projects in Manchester. Therefore, the average and median could not be calculated; the figure in the table is based on the one datum.
In the closed sales data, there were 4 sales in non-FHA projects that exceeded $270,000. Because there were only 34 sold units in total, these 4 skewed the data significantly. If these 4 are omitted, the average sale price for all 34 units drops to $130,200. For sales in non-FHA projects the average sale price drops to $126,400.
Data derived from CTMLS 1/18/2014
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
404-433-4565 Cell Phone
860-644-3772 Fax Phone
Check out our article in Common Interest magazine on page 19!