Connecticut Housing Market Takes Hit

Sales of single-family homes and condominiums in Connecticut fell by double-digit percentages in April, according to a new report released today by the New England real estate research firm ""The Warren Group"":http://www.thewarrengroup.com. The company reported that April home sales in the state dropped to their lowest level in more than 20 years. Median prices for single-family homes also continued to decline, but not as sharply as in recent months.
According to Timothy M. Warren, CEO of The Warren Group, low mortgage interest rates, the first-time homebuyer tax credit, and depressed home prices have failed to stimulate sales in Connecticut as was expected. Warren says job losses and pay cuts in the local market, as well as mounting consumer debt appear to be having a stronger effect on people’s home-buying decisions.
The Warren Group's report shows 1,528 single-family homes were sold in Connecticut during the month of April - a 21.1 percent decline from 1,936 sold a year ago. It was the slowest sales pace for the month of April since The Warren Group started tracking changes in Connecticut’s real estate market in 1987. Year-to-date home sales totaled 5,079, a 26 percent decrease from 6,868 last year.
The median selling price for single-family homes in Connecticut retreated 13.5 percent to $227,500, The Warren Group reported. In April 2008, the median prices was $263,000. Monthly median home prices in the state have been falling by double-digit percentages, year-over-year, for seven consecutive months now. However, April delivered the smallest price decline in that seven-month period. The median price for homes sold in the first four months of 2009 is down 15.5 percent to $224,000.
Statewide condominium sales were off 44.2 percent in April. Condo sales totaled 447, down from 801 in April 2008. April’s condo sales were also the lowest for that particular month since The Warren Group started tracking sales changes in 1987. The median selling price for condos tumbled 22.3 percent to $171,000, posting the steepest monthly decline in years. Connecticut's condo sales have plunged 40.9 percent and the median price has dropped 11.5 percent so far this year.