Regional Spotlight: Greater Hartford, CT Home Prices Increase 5% from May to June

RISMEDIA, July 13, 2007—A 12.24% decrease in the number of new single family homes on the market in the Greater Hartford region from May to June (from 2,198 to 1,929 homes) has been accompanied by a 5.05% increase in median home prices during the same period (from $257,000 to $270,000) according to the Greater Hartford Association of Realtors®.

The number of homes sold between May and June increased by 28%, from 881 closings in May to 1,130 in June, while the total dollar volume of closed home sales in the region increased by 37.33% (from $262,544,765 to $360,551,504). The average number of days that property was on the market decreased 11.29% (from 62 days in May to 55 days in June).

The increase in real estate activity from May to June is a departure from trends for the region during the past year. From June 2006 to June 2007, the number of closed sales decreased by 12.28% (from 5,751 to 5,045 homes), and the number of new listings increased by 2.89%, from 10,523 to 10,827 properties. The median home sales price still increased overall (from $260,000 to $270,000, or 3.85%) despite these factors.

Despite reductions in the overall number of homes sold during the past year, higher priced homes now represent a larger share of total homes on the market in the Greater Hartford region. While the number of homes that sold for less than $300,000 decreased by 25.59% from June 2006 to June 2007, those that sold at or above $300,000 decreased by only 13.33%. Furthermore, in June 2006 homes that sold for $300,000 or more made up 37.74% of total sales, while in June 2007, homes in the $300,000+ range made up 41.38% of total sales.

“Although there has been recent volatility in mortgage rates, home prices for the region are remaining stable or increasing,” said Greater Hartford Association of Realtors President and CEO Jeff Arakelian. Well maintained homes in attractive neighborhoods continue to offer a solid investment for those who seek to live in a region that combines urban economic benefits and amenities with an easy commute and a smaller town lifestyle.”

Regardless of a projected decrease in existing-home sales for the remainder of this year, the National Association of Realtors projects that sales should stay at or around recent numbers in the next few months. The National Association of Realtors predicts that the movement toward less buying and selling activity will continue as buyers lose confidence in the market and lending standards become tighter. National Association of Realtors Senior Economist Lawrence Yun says that “better supervised lending will put housing in a fundamentally healthier state over the long term,” said senior economist Lawrence Yun.

Following the yearlong trend of single-family homes in Greater Hartford, the number of condominiums on the market last month increased 18.67% from June of 2006 (from 1,366 to 1,621.) Although the number of closed sales decreased from June of last year by 17.13% (from 432 to 358), the median sales price increased from $175,000 to $177,250. Since 2006, the year-to-date average days on the market for condominiums has increased by 36.17%, from 47 to 64 days.

For more information, call 1.860.561.1800 or visit www.gharonline.com.