Regional Spotlight: Connecticut Home Sales Slip 1.9 Percent in 2009; December Home, Condo Sales Surge by Double-Digits

RISMEDIA, February 3, 2010—A strong showing in December 2009 helped Connecticut’s single-family housing market level off from 2008, with year-over-year single family home sales down only 1.9% in 2009.

But the median home price fell 10.1% from 2008, and condo sales slid sharply compared to 2008, according to The Warren Group, publisher of The Commercial Record.

“Single-family home sales in Connecticut posted sold gains during the last three months of 2009 and that helped to temper the sharp drops in monthly sales earlier in the year,” said Timothy M. Warren Jr. “The home buyer tax credit and low mortgage interest rates helped to boost the home sales. Median prices for single-family homes and condominiums continued to deteriorate last year, but on the positive side we did see a gain in the median price for single-family homes and condos in December–the first increase in more than a year.”

A total of 24,401 single-family homes were sold in 2009, down from 24,863 in 2008. The total was boosted by a strong December, with single-family home sales rising 34.8% to 2,216 from 1,644 in December 2008. It was the strongest sales pace for the month of December since 2006.

The median price for a single-family home in Connecticut retreated 10.1% to $240,500 in 2009 from $267,500 in 2008. December’s median home price rose 3.6% to $238,250 from $230,000 in December 2008. It was the first increase in monthly median home prices year-over-year since November 2007.

“Median home prices have been declining for two years and are now 18% lower than they were in 2007, when prices peaked in Connecticut,” said Warren.

Connecticut’s condominium market continued to slump. A total of 7,359 condos were sold in 2009, a 13.8% decrease from the 8,536 sold in 2008. This marks the second consecutive year that condo sales have fallen below 10,000. In contrast, the month of December was a bright spot, with year-over-year condo sales spiking 29.1% to 693 from 537 in December 2008. It was the third consecutive month that condo sales increased.

The median condo price slipped 8.8% to $178,000 from $195,250 in 2008. December’s median condo price was also $178,000–1.7% higher than the $175,000 median price in December 2008.

For more information, visit www.thewarrengroup.com.