Connecticut Housing Sales Volume and Prices Decline, Mirroring National Trends
02/28/2008
Contacts:
Kristi Sullivan, 860.571.6213
or Sara Vincent, 860.571.6203
Mirroring national trends, sales of single family homes in Connecticut fell on a quarter-to-quarter and year-over-year basis, according to the latest report by the Connecticut Economic Resource Center (CERC). The total number of transactions in the 4th quarter of 2007 was 7,150 compared to 10,113 in the 3rd quarter, a decline of 2,963, or 29 percent. Between the 4th quarters of 2006 and 2007, the number of transactions declined by 1,598, or 19 percent. The decline can be attributed at least partly to seasonal trends and undoubtedly to the significant impact of the national housing slump.
Connecticut's median housing price in the 4th quarter was $260,000, a quarterly decline of 10.3 percent, or $30,000. Prices were down in all eight counties in Connecticut, with decreases ranging from 17.2 percent in Litchfield to 0.7 percent in Middlesex. Compared to last year, the median price fell by $5,000, or 1.8 percent. Between the 4th quarters of 2006 and 2007, the median price actually increased in Fairfield County by 6.1 percent and in Tolland County by 3.3 percent. Among the other six counties, Litchfield had the greatest decline by 9.7 percent while New London was basically flat, increasing slightly by 0.5 percent.
The CERC analysis includes an affordability index that measures the ratio of median household income to median home sale prices, reflecting the amount of time it would take a median-income household to pay for a median-priced home in Connecticut, if buyers spent their entire income on the purchase. The housing affordability index in Connecticut somewhat improved between the 3rd and 4th quarters of 2007, from a value of four years and six months to four years and two months.
The CERC report also identifies the top 10 towns with the largest price increases and decreases from quarter-to-quarter and an activity index that shows a relative comparison of housing sales among towns. Towns with the largest price increases (ranking 1-10) were Canaan, Salisbury, Haddam, Norfolk, Essex, Middlefield, Scotland, Lyme, Chaplin and Preston, while those with the largest price decreases (ranking 156-165) were Canton, Colebrook, Thompson, Thomaston, Voluntown, Warren, Bolton, North Canaan, Sprague and Cornwall.
"This analysis supplements CERC's existing research on the state's economic position, keeping with our goal of providing objective research to help businesses and policy makers make informed judgments about future decisions," said Jeff Blodgett, CERC's Vice President of Research.
CERC's series of quarterly housing reports, including complete data for each of Connecticut's 169 towns, provides a unique perspective on the housing market conditions in Connecticut's towns and regions and is available at www.cerc.com.
About CERC
Based in Rocky Hill, the Connecticut Economic Resource Center, Inc. is a nonprofit corporation that provides objective research, marketing and economic development services to local, regional, state and utility entities and policymakers. CERC is a public-private partnership, funded primarily by utility and telecommunication companies, with a mission of making Connecticut a more competitive business location. Visit www.cerc.com for more info.