Town-by-Town Analysis Shows Increases in Home Sales, Despite Permit Trends

12/23/2008

Overall housing sales across Connecticut increased in volume and price since the second quarter of 2008 but are still down from the same quarter last year, according to the latest town-by-town analysis by the Connecticut Economic Resource Center, Inc. (CERC).

Overall, there were 521 more homes sales in the third quarter of 2008 than the second quarter, with home prices increasing by 1.8 percent from the same quarter.  Although sales and prices are increasing on a quarterly basis, the market has still seen a decline from the same time last year when there were 2,211 more home sales with prices 8.2 percent higher according to CERC.  On a year-to-year basis, 46 of Connecticut’s 169 towns saw an increase in home sales from the same time frame last year. 

While home sales are stabilizing, building permits continue to plummet in the state, providing a contradictory view of the housing market.  Based on data through October 2008 from the Department of Economic and Community Development, it is estimated that approximately 5,500 permits will be issued this year – the fewest permits since 1969. 

 “Viewing data for building permits issued on a monthly basis, it’d be easy to conclude the housing market is in a free fall,” said Jeff Blodgett, VP of Research, CERC.  “With the ongoing fiscal crisis, it’s becoming more important to look at housing statistics from all angles such as quarterly statistics and permit data to get a full picture of where Connecticut’s housing market stands.”

CERC’s findings also show that the town of Warren had the highest median home price for the third quarter (approximately $2.6 million), beating out the usual core set of towns (Darien, Easton, Groton, New Canaan, Ridgefield, Weston, Westport and Wilton, which have been in the top 10 list since CERC started their quarterly reports in 2007).  
 
CERC ranks towns on their housing affordability based on the local median house sales price and median incomes, and ranks their activity based on the number of sales per 1,000 homes.  The top 10 most active towns in Connecticut according to sales volume (ranking 1-10) were Burlington, Norfolk, Darien, Westport, Weston, New Canaan, Newtown, Killingworth, East Granby, and Tolland.  The least active towns (ranking 160-169) were Danbury, Preston, Morris, Derby, Stamford, Woodbury, Bridgeport, New Haven, East Windsor and Hartford. 
 
CERC’s series of quarterly housing reports, including complete data for each of Connecticut’s 169 towns, provides a detailed perspective on the housing market conditions in Connecticut’s towns and regions and is available at www.cerc.com.

About CERC
The Connecticut Economic Resource Center, Inc. is a nonprofit corporation and public-private partnership that provides clients with objective research, marketing and economic development services consistent with our mission of making Connecticut a more competitive business environment. Visit www.cerc.com for more info.

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