The Connecticut Real Estate Market Report:  First Quarter 2007

By Barry Rosa

Vice President

Prudential Connecticut Realty

April 16, 2007

The first quarter of 2007 has come to a close and it is once again time to look at Connecticut real estate market figures.

2007 got off to a relatively slow start in January, but saw increased activity in February and even more so in March.  Deposits were at a good level in March after being slightly off in the first two months of the quarter.  There are more buyers in the market place, and rather than just looking (which was often the case in the last quarter of 2006), they are now buying.

Unit Sales

Single-Family sales are down slightly from last year (about 7%); however, we expect that the overall rate of sales will catch up to last year’s levels as we get further into the year.  The largest market areas (in terms of sales), such as Fairfield and Hartford Counties, are showing the best performance levels in this regard.

Condominium sales are down from last year (about 14%), but we expect to see increases in the rates of sales in the coming months. 

Sales Prices

Overall in our market, sales prices are nearly the same as they were in the first quarter of last year. There are some modest adjustments to the median prices in most areas; but we anticipate that by year end median prices will be just about the same as last year.

Looking Forward

The first quarter numbers will probably generate some negative media attention.  This is unfortunate, but to be expected, especially in the context of the current national coverage of the problems with sub-prime lending and the resultant foreclosures that are taking place in certain areas of the country (but not in our markets)!  

Mortgage interest rates continue to be low.  Unemployment rates are low.  Job creation has been in positive numbers in Connecticut for a sustained period of time.  We do not have a large amount of unsold inventory in the market place.  Inventory that is priced properly for its market place is selling very well.

We are in a traditional real estate market -- complete with seasonal fluctuations!  As we consider these predictable patterns, we must remember that both the economy and the real estate markets in Connecticut are stable.  2007 is poised to be a good year for real estate, with sales patterns similar to 2006 and essentially stable prices.

See 2007 1st Quarter statistics by county and municipality.