Connecticut Home Sales Rise In May While Prices Continue Climb

by Categorized: Residential Real Estate Reports Date:

Connecticut home sales rose in May — for the first time in four months — and prices continued a steady march upward, a trend that is expected to extend through the summer, a new report today shows.

Sales of single-family houses rose nearly three percent, to 2,356 from 2,290 for the same month a year ago, according to the report from the Warren Group. Through the first five months of this year, sales are down about two percent.

The level of sales is the highest recorded for the month of May since 2010.

The median sale price — where half the sales are above, half below — jumped more than 8 percent, to $268,500, from $248,000 a year ago.

“We’re expecting home sales to continue to rise on a year-over-year basis this summer,” said Timothy M. Warren Jr., The Warren Group’s chief executive. “Median prices have increases for eight straight months and show no signs of slowing.”

In May, three of the state’s eight counties — Fairfield, Windham and Litchfield — saw an increase in both sales of single-family houses and the median price. One county, Tolland, saw a decline in both measures.

In Hartford County, sales in May fell 7.6 percent, to 562, from 608 for the same month a year ago. The median price rose 4.8 percent, to $224,450 from $214,250 in May, 2012.

An improved economy, higher consumer confidence and a tight inventory are contributing to the overall surge in median prices. But Warren said he is concerned about price increases getting too far ahead of sales, which could price too many potential buyers out of the market before a sustained housing recovery in the state is established.

“It’s concerning to see prices rise at this rapid rate,” Warren said. “Pent-up demand for homes from buyers who postponed their purchase plans is driving up prices. Consumers are rushing to buy before prices and interest rates get too high.”

Last week, the average 30-year, fixed-rate mortgage umped to 4.46 percent, from 3.93 percent a week earlier. The rate, as tracked by Freddie Mac, was at the highest level since July, 2011. The increase was the biggest jump since April, 1987.

The median sale price of single-family houses in Connecticut up 9 percent through May, compared with the same period last year. But Warren said he is not worried about a housing bubble forming “unless the rate accelerates and continues for another two years.”

The rise in the median does not necessarily mean that all home prices are rising, however. While there are bidding wars that are pushing up purchase prices, some properties are sitting and owners are reducing asking prices, agents say.

 

 

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8 thoughts on “Connecticut Home Sales Rise In May While Prices Continue Climb

  1. John Steel

    Home prices are not rising – the median price of homes sold is. That is simply a reflection of fewer foreclosures and more higher priced homes coming on the market. Anyone who has tried listing their home can tell you the truth – values continue to plummet in much of Connecticut as residents attempt to flee.

  2. pete

    John is 100% correct. Don Imus recently sold his house in Westport for $14.4 million. You wanna bet a bunch of these sales raises the median. CT is dying a slow death while DANNY BOY sucks up to obama seeking that federal judgeship. The workers once retired are leaving in droves and leaving behind the takers. In 20 years there will only be public employees and welfare takes in CT

  3. Patrick

    I’m not so sure it’s because people are flocking to leave the state. I know a few friends who’ve had a hard time buying a home because the prices have gone up in the past year, especially in the entry level market. They’ve been outbid by other people b/c inventory is pretty low and demand for homes under 500K is picking up. I’m sure certain towns(like Glastonbury, West Hartford, Farmington) the market is stronger due to demand for good schools, close to shopping, etc.

  4. alison

    If you check zillow and trulia, prices are still going down at least in the Hamden area

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  7. John Steel

    Before you buy into this nonsense – Go look at Realtor.com where page after page of listings are dominated by a little green arrow pointing downward. That arrow indicates the price has been reduced. Or check out the excellent Raveis website where the amount prices are lowered is shown. Even in “hot” addresses such as Westport every other property listed shows 10% and greater reductions in price. The real estate industry is trying to whip up a buying frenzy. Don’t get burned.

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