As part of my marketing efforts as an FHA condo approval specialist, 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.
Manchester CT Condo Data for 2013
Manchester has 54 condominium projects of which 15 of them are approved with FHA. (Of those, our office has handled 9 of them.) Before FHA’s changes in 2011 there were 45 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.
In Manchester, condominiums do not have a high closing percentage overall. In FHA-approved projects just under 60% of the units listed for sale resulted in closed sales. In non-FHA projects, the rate of closed listings is less than 50%.
This was curious to me so I gathered the data in Manchester for single-family homes in the price range of condominiums ($250,000 and below) to draw a comparison. In 2013, there were 663 single-family home listings and of those, only 62% resulted in closed sales. This is only slightly better than units in FHA approved projects and 14% higher than units in non-FHA projects.
In Manchester CT, if a unit is listed in a non-FHA project, it has a greater chance of not being sold (53%) than resulting in a closed sale (47%).
The average and median sales prices were highly in the favor of FHA-approved condominiums. This provided a stark contrast between units that sold in FHA and non-FHA projects. The average closed unit sold for $35,000 more in FHA projects than in non-FHA projects. The median closed unit was $70,000 higher in FHA projects than in non-FHA projects.
This would signify to me that the majority of the units sold in non-FHA projects were sold to investors. Investors are drawn to condominium units under $100,000 as these result in a greater return on their investment.
The average and median days on the market for closed units are comparable between FHA and non-FHA projects. Incidentally, the average active days on the market for closed sales of single-family homes is also around 60 days.
*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. This is why the percentage of closed sales plus the percentage of NOT closed sales does not equal 100%. There are currently 17 units still on the market that were listed during 2013.
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
404-433-4565 Cell Phone
860-644-3772 Fax Phone
Check out our article in Common Interest magazine on page 19!