Here are some statistics from CoreLogic on condo lending:
- Through November 2016, lending for condo purchases was running at an annual rate of $74 billion, or 8% of total purchase originations.
- Condo sales were relatively flat through the first half of 2016, coming in at just under 600,000 units.
- Average sales price was $300,000, up 3% from 2015.
- Days on the market was a very fast 78 days, thanks to a tight condo supply.
- Congress in 2016 lessened the restrictive FHA lending rules for condos, lowering the owner occupancy threshold from 50% to 35%.
- Demographic trends show first time millennial homebuyers and down sizing baby boomers will gravitate toward the condo market.
- Though condos remain a relatively small slice of the overall single-family market, this category plays an oversized role when it comes to affordable options for first time buyers, low-to-medium income borrowers and graying baby boomers.
Selling your condo? Have a first time buyer interested who can’t get a bank loan? Don’t need the cash? Meet with him, have him give you his credit report, work out the terms, carry back the note – help the market!
Source: CoreLogic, Insights Blog, U.S. Housing Policy Update, March 2017, Condo Lending.