Historical Snapshot of Wethersfield Sales Activity as of 12/31/2010
|Year||# Units Sold||Median Sales Price||Average Sales Price||Average Days On Market|
2010 condo unit sale volumes were slightly below 2009 sale volumes. More importantly, the median and average sales prices declined in 2010. The lower sales volumes and the decline in the median and average sales prices are attributable to:
- Conventional mortgages increased down payment requirements for condo purchases which vary now based on the Buyers’ credit scores.
- Both conventional and government mortgage lenders are more carefully reviewing condo documents and financial statements, with a keen focus on reserves.
- “Spot” approval of non-FHA approved condo complexes was practically eliminated when HUD changed the “spot” approval rules.
- HUD approval of condo complexes for FHA mortgages is no longer evergreen. FHA approved condo complexes now have to renew their approvals every two years or fall off the FHA approved list. In addition, condo complexes need to comply with new, more stringent, FHA guidelines to get or keep FHA approval status.
- Competition from smaller single family homes.
The above changes to condo mortgage guidelines and the general decline in the housing market were the basis for Buyers’ purchases of lower priced condos in less expensive complexes or on foreclosure/short sale deals in 2010.
The median and average sales prices for Wethersfield condos are close to 2004 levels. Do you think Wethersfield condo sales have hit bottom? Please share your thoughts by posting your comments below or on my Facebook page, Maria Hagan’s Guide to Living in Greater Hartford.
What Price Ranges Sold?
As the chart below indicates, Wethersfield condos are selling below $200,000. In addition, sales have shifted down from $150,000+ to under $150,000 for the reasons noted above.
Sales by Price Range as of 12/31/2010
|Year/ Status||>$100K||$100K– $150K||$150K– $200K||$200K– $250K||$250K– $300K||<$300K||Total||% Change|
It is unlikely that mortgage guidelines for condo purchases will relax anytime soon. In addition, industry analyst believe another wave of foreclosures will come on the market in 2011. The forecast for the Wethersfield condo market is for prices to remain relatively level in 2011.
Please share your predictions for the Wethersfield Condo Market in 2011 by posting your comments below or on my Facebook page, Maria Hagan’s Guide to Living in Greater Hartford.
Maria HaganPrudential Connecticut Realty 1142d Silas Deane Hwy Wethersfield, CT 06109 Cell: 860-305-8044 Email: email@example.com