REGIONAL SPOTLIGHT—Single-family home sales in Connecticut rose more than 5 percent in the first quarter, while median prices dropped 6.5 percent, according to The Warren Group, publisher of The Commercial Record.
Sales of single-family homes in Connecticut increased to 4,157 in the first quarter, up from 3,950 in the first quarter 2011. This is the first time since the second quarter in 2010 that home sales posted an increase.
Home sales also rose in the month of March, increasing 4.5 percent to 1,610 from 1,540 in March 2011. This is the third consecutive month year-over-year home sales increased.
“After six consecutive quarters of depressed home sales in Connecticut, it’s encouraging to see a modest increase,” says Timothy M. Warren Jr., CEO of The Warren Group. “The market has benefited from mild winter weather, low mortgage rates and improving consumer confidence in the economy.”
The median price for Connecticut single-family homes sold in the first quarter was $215,000, a 6.5 percent drop from $230,000 in the same period in 2011. This is the lowest median price recorded statewide since 2003.
In the month of March, prices dropped less than 2 percent to $221,950 from $225,000 in March 2011.
“In studying patterns of previous housing slumps and recoveries, I’m not surprised median prices are continuing to drop,” Warren says. “Home sales volume will continue to rise, but it will take several more months for median prices to follow.”
A total of 1,134 Connecticut condominiums were sold in the first quarter, a 1.4 percent increase from the same period in 2011 when 1,118 sales were recorded. During the month of March, 430 condos traded hands, down more than 10 percent from 480 in March 2011.
Condo median prices also decreased in the first quarter. The median price dropped more than 4 percent to $158,250, down from $165,000 in the first quarter 2011. During the month of March, prices bumped up 1.4 percent to $161,750, up from $159,500 in March 2011.