Sales up, prices down in September
Connecticut’s residential market showed mixed signs in September, with single-family home sales up 4.6 percent compared to the previous year, but the median sales price down 7.3 percent, according to a report published by The Warren Group Nov. 6.
In Fairfield County, the sales of 482 single-family homes in September represented a 3.4 percent drop compared to the previous year, while the median sales price plummeted 17.2 percent to $414,250 from $500,000 in September 2011, The Warren Group reported.
The report also noted there were 13.7 percent fewer condominiums sold in Fairfield County in September, with a median sales price of $235,000 compared to a median sales price of $265,199 a year ago.
Statewide, condo sales increased 7 percent in September, to 503 from 470 a year ago, while the median sales price fell 9.3 percent.
Timothy M. Warren Jr., CEO of the Boston-based real estate data provider, said it is typical to see sales volume increase before prices, particularly in an economic recovery period.
“Overall, I would characterize the real estate market in Connecticut as improving,” Warren said. “Over the first nine months (of 2012), sales volume has increased for single-family homes 13 percent, and condos are up 7 percent. … We’re seeing more activity, more interest and just a generally cheerier outlook this year than we did last year.”
Warren said increases in the volume of sales have slowed since the first half of the year.
“It’s still headed up but not at the same slope as earlier in the year,” he said. “And that’s also reflected in what I think are some disappointing numbers for median prices.”
He said improvements in the housing market are likely dictated by the employment situation, and dismissed the notion that the election had a significant effect on prospective home buyers.
“I’m not a big believer in the impact on the real estate market to the political scene,” Warren said. After years of slow growth, Warren said there is “some pent-up demand” resulting in part from a steadily – albeit slowly – improving employment picture.
“If there is the confidence, I think there is the demand to change the housing market,” he said.