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Tight Inventory Leads To Home, Condos Drop In Sales

BOSTON, May 14, 2013 – Single-family home sales in Connecticut dropped 3.5 percent in the first quarter, while median prices rose more than 9 percent, according to The Warren Group, publisher of The Commercial Record.

Sales of single-family homes in Connecticut declined to 4,067 in the first quarter, down from 4,216 in the first quarter 2012. This is the first time since the fourth quarter in 2010 that home sales posted a decrease.

Home sales also declined in the month of March, decreasing 6.7 percent to 1,529 from 1,639 in March 2012. This is the second consecutive month year-over-year home sales decreased.

“Low inventory is plaguing housing markets all over the country, and Connecticut is no exception,” said Timothy M. Warren Jr., CEO of The Warren Group. “With mortgage rates low and prices rising, we’re hopeful more sellers will emerge and the trend in dropping home sales will reverse.”

The median price for Connecticut single-family homes sold in the first quarter was $235,000, a 9.3 percent increase from $215,000 in the same period in 2012. In the month of March, prices rose 9.9 percent to $245,000 from $223,000 in March 2012.

“It’s clear that the low supply of homes for sale is continuing to pressure prices,” Warren said. “And there is definitely concern that such steep price spikes will cause an affordability issue.”

A total of 1,123 Connecticut condominiums were sold in the first quarter, a 1.2 percent drop from the same period in 2012 when 1,137 sales were recorded. During the month of March, 406 condos traded hands, down 5.8 percent from 431 in March 2012.

Condo median prices also decreased in the first quarter. The median price dropped 1.9 percent to $156,000, down from $159,000 in the first quarter 2012. During the month of March, prices declined 1.5 percent to $160,000, down from $162,500 in March 2012.