As of January 1, there were 976 active listings in our market area and 221 sales pending with an average price of $121,915. 2592 properties were sold and closed in 2011, of which 481 were foreclosures and 24 were short sales. The current absorption rate is 5.0 months, with an average days on the market of 81. 4489 listings were input during 2011.

*Market Area includes Shawnee, Douglas, Jackson, Jefferson, Osage, Pottawatomie and Wabaunsee Counties

As of 10-31-11, there were 1226 active (for sale) properties listed on the market, with an average list price of $142,193. Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of October 2011 were 4045,compared to 4324 for the same period in 2010 and 4112 in 2009.

The absorption rate for the current inventory of single family units is 7.0 months, compared to 8.0 months in 2010. In 2009, we were at 4.7 months, and in 2008 we were at 5.7 months.  Average days on the market (DOM) for sold units was 80 for 2011 at the end of October compared to 76 in 2010, 70 in 2009 and 71 in 2008. As of October 31, there were 259 sales pending (sold, but not yet closed), with an average LIST price of $132,972. (This would be the LIST price at the time the property went from an “active” to “pending” status and would not account for any price reductions, etc. The actual sold price is not available until after the transaction closes).

YTD through October, 2011, 600 closed sales were reported as foreclosure properties, 19 short sales (lender agrees to take less than seller owes) and 19 non-arms length (non traditional) transactions. All these make the YTD total distressed sales as 638, or 26% of total sales.

It used to be relatively easy for a condo complex (or “project” in FHA parlance) to get certified by the FHA, meaning the agency would loan money to qualified buyers of units there. But with the burst of the housing bubble, FHA realized that a lot of delinquent and foreclosed properties were condos. So it tightened its rules.

Essentially, it ‘de-certified’ every condo and townhome and required each one to re-apply for certification, giving plenty of notice about what was going to happen. And in May it did just that.

Some condo associations and management were on the ball and immediately applied for recertification. But many, for whatever reason,  did not. Some may have not realized they had to get recertified. Others may have had officers concerned about liability issues if they signed certification documents. And of course some condos simply don’t meet the FHA’s requirements.

Whatever the reason, the end result is that buyers are ineligible for FHA financing to buy a unit there; something many sellers don’t discover until late in the process when they learn that their pool of prospective buyers has shrunk considerably.

And because the certification process can take months, deals fall through or never get off the ground in the first place. Fewer buyers means prices will have to go down.

Bottom line: We need to get the word out to condo owners, condo associations, property managers, and anyone who is involved in buying or selling a condo or townhome: Find out whether your condo community is FHA certified.

Get in touch with the condo board or association.  There’s a good chance they’re not even aware of the issue.

Requirements for FHA certification

• For a condo complex (or “project”) to have its units qualify for FHA loans, it must meet the following requirements:

• Insurance Coverage: Projects must be covered by hazard and liability insurance and, when applicable, flood and fidelity insurance.

• Commercial Space: No more than 25 percent of the property’s total floor area in a project can be used for commercial purposes.

• Investor Ownership: No more than 10 percent of the units may be owned by one investor. This limitation also applies to developers/builders that subsequently rent vacant and unsold units.

• Delinquent Home Owners Association (HOA) Dues: No more than 15 percent of the total units can be in arrears (more than 30 days past due) of their condominium association fee payments.

• Pre-sales: At least 50 percent of the total units must be sold prior to endorsement of a mortgage on any unit.

• Owner-occupancy Ratios: At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units.

• FHA Concentration: No more than 30 percent of the total units can be encumbered with FHA insurance.

• Budget Review: The homeowners association budget must include sufficient funds to “maintain and preserve all amenities and features unique to the condominium project” as well as insurance coverage.

For the details, click here to a one-page HUD PDF.

July solds (transactions actually closed) were down by 14 units, or about 6% vs June. Year to date (YTD) through July for 2011 had 1340 units sold, up 31 units or about 2% from the same period last year. (There were 1318 during this period in 2010, 1117 in 2009, and 1370 in 2008.)

As of 07-31-11, there were 1423 active (for sale) properties listed on the market, with an average list price of $143,900.

Total listings input (includes currently active, sold, pending, expired & withdrawn) as of the end of July 2011 were 2994,compared to 3125 for the same period in 2775 and 3127 in 2009.

The absorption rate for the current inventory of single family units is 6.0 months, compared to 6.5 months in 2010. In 2009, we were at 4.3 months, and in 2008 we were at 4.1 months.

Average days on the market (DOM) for sold units was 75 for 2011 at the end of July compared to 76 in 2010, 66 in 2009 and 66 in 2008. As of July 31, there were 355 sales pending (sold, but not yet closed), with an average LIST price of $126,297. (This would be the LIST price at the time the property went from an “active” to “pending” status and would not account for any price reductions, etc. The actual sold price is not available until after the transaction closes).

YTD through July, 2011, 313 closed sales were reported as foreclosure properties, 13 short sales (lender agrees to take less than seller owes) and 14 non-arms length (non traditional) transactions.