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Editorial Contact:
Katie Curnutte
The Warren Group
(617) 896-5370
Conn. Home Prices in January
Fall by Largest Percentage in 13 Years;
Sales Drop is Biggest in Almost 20 Years,
According to The Warren Group
FairfieldCountyPriceFalls Nearly 12 Percent in January
BOSTON, March 10, 2008– Home prices in Connecticut took a turn for the worse in January after posting increases during most months of 2007. The median price of single-family homes in January fell by the largest percentage since April 1995, and the plunge in sales rivaled those in the late 1980s, according to The Warren Group, publisher of The Commercial Record.
“Connecticut spent most of 2007 defying the downward trends in neighboring states, at least when it came to prices,” said Timothy Warren Jr., CEO of The Warren Group. “But 2008 is starting out on a different foot, and there’s probably more to come.”
Sales of single-family homes fell 28.6 percent from 2,302 in January 2007 to 1,644 in January 2008. The last time sales dropped by such a large percentage during a single month was in July 1989, when sales fell nearly 40 percent when compared to sales in July 1988. Single-family home sales have been declining steadily in the NutmegState since September 2007.
The median price of single-family homes dropped 5.3 percent from $282,000 to $267,000 this January, the largest decline in price since April 1995, when the median price fell 7.9 percent. The median price increased during most months of 2007, falling only during September by less than 1 percent, and in December by about 2 percent.
“After a year of median prices that continued to creep up despite sales that were declining, Connecticut’s housing market in January fell more in line with those in neighboring states,” Warren said. “The median price of single-family homes in Massachusetts fell by more than 4 percent, and Rhode Island’s price dropped by almost 13 percent. Sales in those two states were also down more than 20 percent in January.
“The drop in median price in nearly every county – with the largest drop of 11.8 percent occurring in FairfieldCounty – indicates the housing slump is gripping even the wealthiest parts of the state. Buyers are waiting on the sidelines as news of plummeting home prices dominates the media, and it might be several more months before they decide to buy. Spring might bring increased interest in homebuying, as it usually does, but it remains to be seen when New England’s housing market will snap out of this slump.”
Condominium sales in the state fared worse than single-family home sales, falling 36.1 percent in January, from 917 to 586. The median price of condos, however, stayed steady at $190,000 in both January 2007 and January 2008.
The Warren Group has recently revised its method of calculating statistics, and now excludes non-arm’s-length sales, or sales that occur between family members and sales that are substantially below the assessed value of a home. Also excluded are foreclosure deeds.
Statistics for all cities and towns available by request to members of the media.
Percent Change in Median Price by Month
2006-January 2008
About The Warren Group
The Warren Group, based in Boston, is the publisher of The Commercial Record in Connecticut, Banker & Tradesman in Massachusetts, as well as a series of association publications. As the premier provider of real estate data in New England, The Warren Group offers a range of real estate products and services for professionals and consumers searching for real estate and financial information. For more information about The Warren Group, please visit www.thewarrengroup.com or call 800-356-8805.