CT Single-Family Median Home Sale Price Drops for First Time Since 1998, Warren Group Reports

Single-family home prices slip 0.9 percent in August; home sales fall 21 percent, the steepest one-month drop since 2000; condo sales slip, prices remain flat
Single-family home prices slip 0.9 percent in August; home sales fall 21 percent, the steepest one-month drop since 2000; condo sales slip, prices remain flat

RISMEDIA, October 11, 2006?The statewide median sale price of single-family homes in Connecticut fell 0.9 percent in August from the same period a year ago, marking the state’s first monthly price decline since 1998, according to a report released yesterday by The Warren Group, publishers of The Commercial Record.

In addition, single-family home sales continued their long slump, falling 21 percent in August, according to statistics compiled by The Warren Group, the premier provider of real estate and financial data throughout New England. The 21 percent decline was the biggest since 2000, slightly exceeding a 20.4 percent drop-off in December 2005.

The state’s single-family median sale price dipped to $287,500 from $290,000 in August 2005. The median sale price had risen steadily since November 1998, to a high of $296,250 in July 2006.

Overall, 3,875 single-family homes were sold in August 2006, down from 4,903 sales a year ago. The sales figure is the lowest posted in August since 1995. Statewide single-family home sales now have dropped 11 straight months and 17 out of the last 19 months dating back to February 2005.

Meanwhile, condominium sales in August fell 10.8 percent, with 1,557 units sold. Condo sales have now fallen 10 straight months, according to The Warren Group. The median sale price rose just 0.5 percent, to $192,500 from $191,638.

For the first eight months of the year, Connecticut’s single-family home sales have dropped 14.1 percent while the median sale price has risen 2.8 percent to $280,000.

Condo sales have fared a little better, as year-to-date sales have dropped 8.4 percent and median sale prices have risen 4.7 percent to $191,000.

Timothy Warren Jr., CEO of The Warren Group, said Connecticut’s August numbers show buyers are starting to gain the upper hand.

?Home sales have been falling for well over a year, and now we’re seeing sale prices starting to fall,? Warren said. As we’ve seen in Massachusetts, where prices are now falling 5 to 10 percent from year-before periods, buyers are taking their time and driving hard bargains. We expect to see more of this in Connecticut over the next few months.

Each of Connecticut’s eight counties has seen single-family home sales fall the first eight months of 2006. Fairfield County continues to experience the steepest decline, with sales dropping 22 percent for the year-to-date period ? and 29.6 percent in August alone.

Hartford County sales fell by the smallest margin ? 6.6 percent. Windham, New Haven, Middlesex, New London and Litchfield counties all posted double-digit percentage declines in single-family home sales.

Median home sale prices, meanwhile, have risen in each county for the eight-month period. New Haven County posted the strongest gain: 8.6 percent, to $255,000. Hartford and Middlesex counties were the only ones in which prices fell in August. Although Fairfield County?s unit sales have fallen dramatically, its median sale price rose 6.6 percent during the year’s first eight months. Fairfield’s $560,000 median sale price is nearly twice as high as the next highest county?s, Middlesex, at $285,000.

Six of Connecticut’s eight counties saw condo sales fall during the first eight months of the year. Fairfield County experienced the biggest percentage drop ? 15.2 percent ? followed closely by Windham (15.1 percent), New Haven (11.2 percent), Middlesex (10.9 percent) and Litchfield (10.4 percent) counties. Tolland and New London counties posted the only increases, at 10.7 and 4.8 percent, respectively. Tolland County?s unit sales rose 23.3 percent in August.

Condo median sale prices rose in each of the eight counties over the eight-month period. New London’s 18.3 percent hike, up to $188,105, led the pack, while Fairfield (up 0.9 percent to $293,000) and Windham (up 1.2 percent to $163,000) counties posted the smallest increases. Fairfield County?s condo median sale prices remain the state’s highest, while Litchfield?s are the state’s lowest at $152,000.

For the full chart detailing median prices and sales figures for each county in Connecticut, contact Mike O?Connell at PAN Communications at (978) 474-1900 or at
thewarrengroup@pancomm.com

For more information about The Warren Group, visit www.thewarrengroup.com or call (617) 428-5100.

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