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The Warren Group: Connecticut Home Sales are Up

While Connecticut home prices remain flat, The Warren Group's CEO sees hopeful economic signs for the state in the sales data.

 

Home sales in Connecticut jumped nearly 12 percent in August compared to the same month last year, and home sales for the first eight months of 2012 also increased almost 13 percent compared to the same period in 2011, according to a new home sales study from The Warren Report.

A total of 2,583 single-family homes in Connecticut sold in August, compared to 2,308 sales in August of 2011. Year-to-date sales this year are 16,217, compared to 14,363 during the same period a year ago.

This is also the fourth straight month this year in which home sales in Connecticut have surpassed the 2,000 mark, according to the report.

“Strong home sales have shown once again that the housing market’s future looks promising,” said Timothy M. Warren Jr., CEO of The Warren Group. “Even though we are comparing to a slow market in 2011, the 12 percent increase is a promising indicator.”

Median home prices, however, remained flat in August and even decreased during the first eight months of 2012, the report indicates. The median price of single-family homes statewide in August was $255,000. The median sales price for homes sold January through August decreased 4 percent to $240,000, down from $250,000 during the same period a year ago.

Warren, however, says the lackluster home price data isn’t necessarily a bad thing.

“In past housing market recoveries, we’ve seen sales volume increase before prices followed,” Warren said. “Perhaps these low prices will lure even more buyers into the market and bring a sustained recovery.”

Condominium sales data in the Warren report followed the same track as home sales. In August, condo sales increased 15 percent over the same month last year, jumping to 649 units sold, the highest number of condo sales recorded in any month this year. Year-to-date condo sales are also up 5.8 percent, increasing to 4,090 from 3,864 during the previous time last year.

But the median sale price of Connecticut condos dropped 11 percent in August of 2012 to $160,000, down from last year’s $180,000. The year-to-date median price of condos in Connecticut fell 8.6 percent to $160,000, down from $175,000 a year ago.

Jan Drobiak October 14, 2012 at 11:40 PM
Love how these real estate interest groups can put the 'spin' on those numbers. I guess no-one listens to Realty Trac anymore since they've admitted to making conflicting indications of interests. 'Strong home sales'? What's 12% of nothing? A more preponderant stat would be: How many houses were up for sale compared to those that were sold? Many want to cash in. That explains why the prices were off 4% than that of last year (Admittedly, by Mr. Warren, 2011 was 'slow market'.) According to where I went to school, that interprets to a $25 million aggregate loss to date OVER LAST YEAR. He goes on to say, 'In the past...we have seen volumes increase before prices followed.' ...'What? Me Worry?' Everything will be fine once the E.U. saves Greece, Spain, and Portugal, wages in the U.S. level out with Chinese wages (And the rest of the world for that matter.), the most populated country in the world. 'Past housing market recoveries'.... Anyone remember seeing anything like this? Experts say, 'It will never be the same.' For the first time, our labor, is competing with labor on a global scale. We do remember, however, what happened when we had to compete with the Japanese automakers...here comes China, and they'll make anything. Test drive the 'Beijing'. Coming to an autodealer near you.

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