Connecticut Home Sales in September See Biggest Decline in a Year; Prices Fall for First Time Since March, According to The Warren Group. State Following Same Trend as Massachusetts and Rhode Island.
BOSTON, Nov. 5, 2007 – Sales in Connecticut of single-family homes dropped 21.8 percent in September, the largest monthly decrease since September 2006. The median price of single-family homes also fell in September after five straight months of increases, according to The Warren Group, publisher of The Commercial Record.
Sales of single-family homes fell from 3,051 in September 2006 to 2,386 this September. Housing markets in Massachusetts and Rhode Island also saw dismal sales in September, with single-family home sales falling 19 and 27 percent, respectively.
The plummeting sales in September come three months after July, when national problems associated with the subprime mortgage market began affecting global credit markets. Real estate transactions normally take about three months to close, so sales that are recorded in September were likely negotiated around the time of the July credit crisis.
Third-quarter sales of single-family homes in Connecticut dropped 6.1 percent from 10,765 in 2006 to 10,113 this year. Year-to-date sales are down 5.6 percent from 28,733 last year to 27,123.
The median price of single-family homes in September fell 2.5 percent from $275,000 last year to $268,000. The third-quarter median price rose 1.8 percent from $285,000 to $290,000. The year-to-date price is also up 1.8 percent from $280,000 in 2006 to $285,000.
“After observing what is happening in the rest of New England, these September numbers out of Connecticut did not come as a shock,” said Timothy Warren Jr., CEO of The Warren Group. “It seems we’re seeing the ramifications of July’s credit crisis, along with the tightening of the mortgage market. Foreclosures are playing a part in declining home prices, and the sharp decreases in home sales across New England seem to signal that consumers are either skittish about the market, or that they are having a more difficult time qualifying for mortgages.”
Condominium sales in September also fell, although prices fared better. Sales were down 17 percent from 1,232 last year to 1,023 this year. Third-quarter condo sales fell 12.8 percent from 4,297 in 2006 to 3,712 this year. Year-to-date sales decreased 9.9 percent from 11,651 last year to 10,498 this year.
The median price of condos rose 9 percent in September from $190,750 to $208,000. Third-quarter prices for condos were up 6.4 percent from $195,000 to $207,375, and year-to-date prices rose 4.2 percent from $192,000 to $200,000.
Statistics for all cities and towns available by request.
About The Warren Group
The Warren Group, based in Boston, is the publisher of Banker & Tradesman, The Commercial Record and 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.
Editorial Contacts:
Katie Curnutte
The Warren Group
280 Summer St.
Boston, MA 02210
(617) 428-5100
kcurnutte@thewarrengroup.com