Regional Spotlight – Connecticut Home Sales Inch Up 4% in July; Median Home Prices Still Off by Double Digits

RISMEDIA, August 28, 2009-Single-family home sales in Connecticut rose 4% in July 2009, the first increase in home sales year-over-year in two years, according to a new report from The Warren Group, publisher of The Commercial Record.

“This is a significant pick-up for the housing market in Connecticut, where sales have slumped for months. The last time there was even a slight increase in monthly sales year-over-year was July 2007,” said Timothy M. Warren Jr., CEO of The Warren Group. “Still, declines in monthly median prices continue to exceed 10 percent, a clear sign that the real estate market is still struggling. We won’t see stabilization in home prices until there are consistent gains in home sales.”

Single-family home sales climbed to 2,947 in July 2009 from 2,834 in July 2008. Home sales in Tolland and Windham counties soared by more than 50% in July compared to the same month last year. Only Hartford and Fairfield counties had declines in July home sales. A total of 12,470 single-family home sales traded statewide through July, a 15.5% drop from 14,758 a year earlier.

The median selling price for single-family homes fell 11.7% to $255,000 in July from $288,750 a year ago. Monthly median home prices have been sliding by double-digit percentages year-over-year since October 2008. Year-to-date the median home price retreated 12.7% to $240,153 from $275,000 in 2008.

Condominium sales in Connecticut continued to decline in July, but at a slower rate than prior months. Condo sales slipped 7.4% to 794 from 857 in July 2008. “Even though condominium sales are still on a downward trend, this is an improvement from the first six months of the year when sales plunged by double-digit percentages,” said Warren. There were 3,577 condo sale transactions recorded from January through July, a 33% decrease from 5,339 a year earlier.

The median price for condos tumbled 15.5% to $180,000 in July from $213,000 during the same month last year. The median price for condos sold through July was $175,000, down 12.9% from $201,000 the prior year.

For more information, visit www.thewarrengroup.com.