Median Home Prices Continue To Rise

BOSTON, July 2, 2013 – A total of 2,356 single-family homes sold in May, up from 2,290 the same month a year ago. This is the highest number of transactions recorded for the month since May 2010 when there were 2,516 sales. This is also the first time since January that sales volume increased year-over-year. Year-to-date sales are down almost 2 percent. A total of 8,329 homes have sold so far this year, down from 8,479 during the same period last year.

“Now that we’re well into the prime spring selling season, activity is increasing for sales volume as expected,” said Timothy M. Warren Jr., CEO of The Warren Group. “We’re expecting home sales to continue to rise on a year-over-year basis this summer. Median prices have increased for eight straight months and show no signs of slowing.”

The median price for single-family homes sold in May increased more than 8 percent to $268,500 from $248,000 a year ago. This is the highest median sale price recorded so far this year. Year-to-date, the median sale price of a single-family home in Connecticut is $245,000, almost 8 percent higher than the $225,000 median price recorded during the same period in 2012.

“The rise in prices is a result of an improved economy, higher consumer confidence and tight inventory,” Warren added. “It’s concerning to see prices rise at this rapid rate. Pent-up demand for homes from buyers who postponed their purchase plans is driving up prices. Consumers are rushing to buy before prices and interest rates get too high.”

The median sale price of a condominium in Connecticut was $175,000 in May, a 4.8 percent increase from $167,000 in May 2012. The year-to-date median condo price rose more than 3 percent to $165,000 from $160,000 during the same period last year.

For the second straight month, condo sales also increased. Sales rose 1 percent to 605 from 599 in May 2012. A total of 2,253 condo sale transactions were recorded in the first five months of the year, a 0.4 percent jump from 2,244 the prior year.