Regional Spotlight: Connecticut Home Sales Rise 11.5% in October 2009; Condo Sales Increase 10%

RISMEDIA, December 9, 2009—Sales of single-family homes and condominiums in Connecticut jumped by double-digit percentages in October 2009 from a year earlier, according to The Warren Group, publisher of The Commercial Record. October was the third month in 2009 that single-family home sales have risen year-over-year.

Despite the increase in sales volume, median prices for both single-family homes and condominiums statewide continued to drop from year-ago levels.

“The tax credit that’s being offered to homebuyers has certainly stimulated home sales in Connecticut and elsewhere. And while unemployment remains a concern, I think people who have jobs are probably feeling a bit more optimistic about the financial markets and the overall economy. That’s making them more willing to go out and make big purchases like buying a home,” said Timothy M. Warren Jr., CEO of The Warren Group.

Single-family home sales shot up 11.5% to 2,371 in October from 2,126 in October 2008. October was the third month that year-over-year sales have increased. Sales in September were down 1.4% from last year, while sales volume increased in July and August. October’s 11.5% increase was the biggest percentage increase in monthly sales year-over-year since June 2004.

Middlesex, Windham and Fairfield counties had the biggest increases in sales activity in October. In Middlesex County, sales escalated 36.7%, while in Windham County, sales increased 23.8%. Fairfield County sales were up 19.4% in October from the same month last year. Statewide, year-to-date home sales dropped 9.1% to 19,565 from 21,524.

“While gains in sales volume are pointing to a housing recovery, we have to keep in mind that home prices are still declining year-over-year, so the housing market hasn’t completely turned a corner,” Warren noted.

The median price for single-family homes sold in October slipped 4.4% to $239,000 from $250,000. The decrease in median home prices has narrowed, with October’s 4.4% decrease the smallest so far this year. In the first eight months of 2009, the price declines exceeded 10%. The median price for homes sold from January through October tumbled 11.3% to $242,140 from $273,000 a year ago.

Condominium sales also rose in October, posting the first increase in monthly sales year-over-year in more than three years. Unit sales rose 10.2% to 802 from 728 in October 2008. October’s sales increase is a sharp contrast to the first five months of 2009 when sales were off by more than 30%. Condo sales have plunged 23.2% to 5,814 in the first 10 months of 2009 from 7,572 a year earlier.

October’s median selling price for condos dipped 5.3% to $180,000 from $190,000 the previous October. The year-to-date median condo price is down 11% to $178,000 from $200,000.

For more information, visit www.thewarrengroup.com.

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