Although total 2010 condo sale volumes in Rocky Hill were below 2009 volumes, condo sales are occurring at a steady pace. The median and average condo sales prices in Rocky Hill were slightly lower in 2010 than they were in 2009. The change in the median and average sales prices of condo units selling in Rocky Hill is due to:
- A decline in purchases of higher priced units (above $250,000) in the 2nd half of 2010.
- Conventional mortgages increased down payment requirements for condo purchases and vary the down payment percentages with the buyer’s 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 has been practically eliminated by HUD’s changes to 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 the new, more stringent FHA guidelines to get or keep FHA approval status.
Historical Snapshot of Rocky Hill Sales Activity as of 12/31/2010
|Year||# Units Sold||Median Sales Price||Average Sales Price||Average Days On Market|
The changes to condo mortgage guidelines and the general decline in the housing market are driving buyers to purchase lower priced condos. The real estate market began turning in the 4th quarter of 2007/early 2008. As the chart below shows sales volumes for Rocky Hill condos below $250,000 have been steady during 2008,2009 and 2010 but there have been fewer closed sales above $250,000 during the same three years.
Sales by Price Range as of 12/31/2010
|Year/ Status||>$100K||$100K– $150K||$150K– $200K||$200K– $250K||$250K– $300K||<$300K||Total||% Change|
Some interesting statistics:
- All of the units that sold below $150,000 were either foreclosures or units in conversion complexes (complexes that at one time were apartments).
- The only Rocky Hill condo sales in the 4th quarter that were above $210,000 were either at Skyview (1) or in Active Adult Communities (3).
- Four units that sold between $250,000 and $300,000 were in Active Adult Communities.
- All six closed sales above $300,000 were also in Active Adult Communities.
It is not likely that condo mortgage guidelines will relax anytime soon. In addition, industry analyst believe that there is another wave of foreclosures that are expected to come on the market in 2011. Rocky Hill is a desirable centrally located community. Rocky Hill condo prices are expected to remain relatively level in 2011.
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