House sales in Connecticut rose again in September, but prices fell to their lowest level in a decade for the month, indicating that the state’s housing market has yet to swing into full recovery.
The median sale price of a single-family house fell 7.2 percent to $230,000, from $248,000 for the same month a year ago, according to a report today from The Warren Group, which tracks real estate trends in New England based on records kept by the towns and cities.
The year-over-year monthly decline in the median was third sharpest in 2012, a year in which sales have risen each month. This spring, several months of modest increases in the median raised hopes that a full recovery was starting the unfold.
Timothy Warren Jr., Warren’s Group’s chief executive, said the increase in sales is a good sign showing that “consumers have regained some confidence in the economy, and are making home purchases with more enthusiasm.”
But price weakness shows that it is too soon to declare the market is in full recovery.
“The drop in prices is concerning, but it’s typical to see sales volume increase before prices do in a recovery period,” Warren said.
The drop in prices are providing an opportunity for buyers who can afford to purchase a home now. Mortgage rates remain at or near historic lows, but mortgage lending standards still remain strict, making it more difficult to get approval.
The state’s unemployment rate also remains historically high, cutting into the pool of buyers who would be comfortable making a house purchase.
Sales of single-family houses rose 4.5 percent in September to 1,900, from 1,817 sales for the same month a year ago.
Across the state, condominium sales rose more than 7 percent, to 503, from 470 in September, 2011. The median sale price dropped 9.3 percent in September, to $157,000, from $173,000 a year ago.