Connecticut Single-Family Home Sales Fall to Lowest Level Since 1996: The Warren Group

RISMEDIA, Feb. 23, 2007-Connecticut's housing market faltered in 2006 as the double-digit increases in median price that had characterized the previous four years came to a halt. The year-end median price for single-family homes rose 0.7% over 2005's prices. Sales suffered, as well, as 37,227 single-family homes were sold. This was the first time fewer than 40,000 were sold in a year since 1996, according to The Warren Group, the publisher of The Commercial Record.

The median price of single-family homes fell steadily from August to November of 2006, with a slight uptick in December. The median price for the year landed at $275,000. In 2005, the median price was $273,000.

"Overall 2006 was the worst year for Connecticut real estate in a decade," said Timothy Warren, Jr., CEO of The Warren Group. "We have to look back to 1996 to find a year in which fewer single-family homes were sold. Meanwhile, the median price gain in 2006 was the smallest since 1997. The fact that the median price rose by double digits in each of the previous four years is probably the primary reason for the slump in the market in 2006. When real estate prices are growing at a rate considerably higher than the rate of growth in personal income, the bull market can't be sustained.

"Nevertheless, the housing market in Connecticut in 2006 was better than those in neighboring states. The median price of a single family home fell last year by 5.8 percent in Massachusetts and fell by 0.4 percent in Rhode Island."

Complete statistics for cities, towns and counties available by request.

For more information, please visit www.thewarrengroup.com or call 617-428-5100.

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