The information we hear on TV or radio or read in the newspaper is usually about the national or statewide real estate market. However, the real estate market can vary from town to town. The old adage “Real Estate is local” is very true.
Below are snapshots of Wethersfield sales activity, beginning in 2003, when the market really began to take off, through the middle of this month.
Single Family Homes As of October 15, 2010
Condo Sales As of October 15, 2010
In Wethersfield, the market peaked in 2005 for single family homes. In 2009, single family home sales in Wethersfield were 71.5% of the high volume mark of 337 closed sales in 2005. Although 2010 looks like it is lagging considerably, there are 39 sales pending and two solid months before the year ends.
Condominium sales in Wethersfield also peaked in 2005. However, the growth of the mortgage crisis in the latter half of 2008 brought significant changes to mortgage underwriting guidelines, especially in the condo market. Lenders began requiring higher down payments for conventional loans for condo purchases and higher credit scores for condo buyers. In addition, lenders began to carefully scrutinize condo resale packages and budgets.
As a result of the underwriting changes made for conventional loans, FHA loans began to increase in popularity. However, HUD also began to make changes to its underwriting guidelines and condo financing policies. The first change was the virtual elimination of the “spot” approval of purchases in condo complexes that were not on the FHA list of approved complexes. This change was quickly followed by an announcement that condo complexes would have to obtain HUD re-approval to stay on the FHA approved list of condo complexes. Condo complexes were given to December 7, 2010 to renew their FHA re-approvals.
The changes to conventional and FHA underwriting guidelines at the end of 2008 and throughout 2009 affected buyer eligibility and resulted in fewer Wethersfield condo sales in the 2009. On a positive note, 2010 condo sale volumes in Wethersfield should remain level or exceed 2009 condo sale volumes.
Interest rates are near records lows. Savvy home buyers are re-entering the market to take advantage of the great low rates! Stop by next month to view single family and condo home sales volume through November 15.