Review Of Condominium And Townhouse Sales In Concord For The First Three Months Of 2009 Sees Strength In March
April 14th, 2009by Bethany Brenner
It appears the New Year had buyers somewhat reluctant to spring forward with much of any condo purchases, but with a huge jump from an average of 2.5 closings to thirteen (13) in the month of March alone (compared to 2 and 3 for January and February), it may be signs of a good Spring. Sales of condominiums, while fewer than single-family residences, have increased almost as proportionately as single-family residences in Concord.
First Quarter 2009 Snapshot Of Condominium Sales In Concord NH
While quarter one of 2009 remains positive, condo sales are still 54% lower than the first quarter of 2008 (28 compared to 13 in 2009). Closing prices for the first quarter of 2009 resulted in a median price of $119,000, a 19% decrease over the median for last year’s first quarter ($146,950 in 2008). Condo closing prices, between Q1 2008 and Q1 2009 decreased much more significantly than single-family residences in Concord during that same time period (7% versus 19%). Closed sale prices ranged from a low of $75,000 to a high of $235,200. The lowest property sold was located at 12 East Side Drive in the East Regency Estates (built in 1985). The highest property sold was located at 11 Cabernet Drive in The Vineyards development, (constructed in 2006).
Twenty-three percent (23%) of condo purchases were at the McKennas Purchase development on Branch Turnpike. Regency Hill Estates on East Side Drive and Mast Yard West on Alice Drive were two other developments seeing the most amount of purchase activity in the first quarter of 2009 (15% of sales for each). Other popular developments include: Oak Bridge, Island Shores, Alden Place, The Vineyards, Edgewood Heights, and Briarwood.
In 2008, 14% of condo sales occurred at The Vineyards. Due to additional phases being built and increased marketing, it is not surprising that this development saw a substantial number of sales during this time period. Oak Bridge, a recently converted apartment complex to condos, saw 11% of the sales. Mast Yard West and Island Shores Estate also saw 11% of the purchases. Mulberry Village and McKennas Purchase remain popular as well.
The desirability of units in these developments is, not surprisingly, representative of the closed price trends seen for both 2008 and 2009. Affordability is seen in Mast Yard West and Regency Estates, with purchases below $100,000, a more popular price point in 2009 compared to the popularity of The Vineyards priced in the mid to high twos – a more common price point purchase in 2008. Island Shores and McKennas Purchase remain a middle of the road price point comparatively.
Market data demonstrates that condos closed at 98% of their listing prices. This is 2% higher than in 2008 (96%); however the listing to closed ratio for Q1 may have other factors contributing to this percentage increase than buyers willing to pay full price for a property. With a rise in foreclosures, listing prices may start out lower than non-foreclosed properties therefore creating multiple and competing offers to drive a closing price above 100% of listing price. Additionally, with some new construction on the market, listing price may reflect a base model whereby adding additional features would further drive the final closing cost above listing price. Lastly, final closing prices may be inflated to include credits from Sellers to Buyers to cover closing and pre-paid costs. This is not uncommon for first time homebuyers with shortened cash flow amounts.
Average days on the market for condominiums sold over the last three months (Jan – Mar.) was 144. The shortest length of time a property was on the market was 30 days and the maximum was 259 days. This number is not much different from Q1 2008 where the average number of days on the market was 130.
Currently For Sale In Concord
As of the publishing of this Market Watch, there are 90 condominium listings in Concord. The median listing price is $155,700. The average number of days these properties have been on the market is 150.
Current condominium prices are evenly distributed within their various price points. Seventeen (17%) fall, both, below $100,000 and between $100,000 and $140,000. The largest price point range is between $140,000 and $175,000. The number of units between $175,000 and below $200,000 falls to only 9% of all condo listings. A total of 37% of condo listings are over $200,000. (14% between $200,000 and $249,999, 19% between $250,000 and $350,000, and 4% over 350,000). It is important to note that of the ninety active listings, thirteen (13), or 14% are detached units in condominium developments, thereby contributing to the higher price points.
It is not then surprising, that of the thirteen (13) condominiums that sold in Q1 of 2009, that the spread of price ranges would be equally distributed as well. Thirty one (31%) of condos sold for below $100,000. Thirty-eight (38%) sold between $100,000 and $150,000 and 15% sold in the range $150,000 and $199,999. It is positive that 15% of the sold condos were over $200,000.
While similar, to 2008, there are some notable differences in the closed pricing trends. In Q1 of 2008, not unlike the same time period of 2009, the largest number of sales were in the ? middle of the road? between $100,000 and $150,000. Interestingly, the second largest selling category of condos in 2008 (29%) were those priced above $200,000 (compared to those below $100,000 for 2009). This could be an indication of falling values or affordability thus far in 2009.
Condominiums remain a worthwhile investment for individuals looking to purchase their first property at an affordable price or those looking to downsize. With the increased number of detached condos on the market, buyers now have the luxury of additional space and privacy with the conveniences and security of condominium living. Financing for condos still exists, but certainly financial institutions are inquisitive to the ownership and usage demographics of each development they are asked to finance a unit for. Buyers having a 20% down payment will see less resistance than those who do not. Additionally, new construction condominiums may be more difficult to secure financing for than existing units.
Based on information from the Northern New England Real Estate Network, Inc. for the period January 1, 2008 to March 31, 2009.
Contributed By Bethany Brenner, GRI, SRES, Bean Group
