Sales of single-family house in the Hartford area rose for the second month in a row in May, a positive sign for the area’s spring home buying season, a new report today shows.
House sales surged 15 percent in May, to 922, from 801, in the 57-town area tracked by the Greater Hartford Association of Realtors.
Pending sales also jumped by 18 percent, indicating that momentum behind a recovery may become sustainable.
“It looks as though buyers who were sitting on the fence are now active, creating an increase in pending and closed sales,” Jeff Arakelian, the association’s president and chief executive, said.
The median sale price — where half the sales are above, half below — dipped two percent, to $225,000, from $230,000.
The inventory of homes for sale continued to shrink in May, in the face of a 21-percent increase in new listings. Based on sales and inventory in May, there is a 7-month supply of properties for sale, close to the six months of supply that is considered to favor neither buyer nor seller.
While shrinking inventory is a good sign in a recovering market, real estate agents are concerned that not enough turnover to keep buyer interest high. New construction, while picking up, is still at relatively low levels.
Many sellers, agents say, remain reluctant to list. They are concerned about the economic recovery, the stability of their jobs and whether sale prices are truly on the upswing.
So when an attractive property comes on the market, there can be multiple bids — even when other properties have been sitting on the market and seeing price reductions, they say.