Connecticut Home Prices Rise For 2nd Month, In Line With U.S.     

March 2, 2010 - The median sales price of a single-family home rose 6.2% in January over a year ago to $238,000, the second month in a row that prices have increased year-over-year. The Warren Group reported that prices rose in six of eight counties, with only Hartford County showing a median price decline of 4.72%.

Fairfield and Middlesex counties had increases of 30% and 19% respectively. The number of home sales also rose, by 19%, with only Windham County experiencing a decline of 22%.

“Connecticut’s housing market has been steadily improving over the last several months. January was the third straight month that sales increased year-over-year by double-digit percentages,” said Timothy M. Warren Jr., CEO of The Warren Group. “Still, the big unknown is whether home sales will continue to increase when the homebuyer tax credit expires and the Federal Reserve stops purchasing mortgage-backed securities.”

National, MA Prices Also Rise

The Connecticut home price increases were consistent with a National Association of Realtors report in February that sales prices rose in 67 of 151 metropolitan areas in the final quarter of 2009. But as in Connecticut, national economists are waiting to see what happens when the Federal Reserve’s $1.25 trillion program to push down mortgage rates expires at the end of March and, a month later, whether prices are impacted when the newly extended tax credit for first-time buyers runs out.

Meanwhile, the Massachusetts Association of Realtors reported last week that single-family prices rose 14.1% in January over January 2009, to $300,000 from $263,000.  The Warren Group reported a 9.6% increase because of a different way of reporting the data.