A positive sign in the national economy, that home prices rose more than expected in the past year, appears to have skipped the state and town.
Bloomberg reported Tuesday that an index tracking property values in 20 cities showed the largest 12-month gain since August 2010. That, coupled with what continue to be historically low interest rates and an increase in consumer confidence, are setting the stage for a sustained rebound on the real estate front as well as the broader U.S. economy, the Bloomberg article reports.
On the local scene, though, the value of a single-family home Westport fell 6.1 percent in the second quarter—an extreme example that mirrors a downward area trend, analysts say.
The year-over-year drop—from $1,000,800 to $940,201 for a so-called “mid-tier” home—continues a trend in Westport, which hasn't seen a rise in home values since the second quarter of 2011, according to the UConn center.
According to Weichert, the highest priced house currently on the market in town is a five-bedroom, four-bathroom house on 6.56 acres on Beachside Avenue, listed at $27,500,000. The lowest priced house is a Main Street town home that is listed at $299,900. In all, according to Weichert, there are 412 properties for sale in town, and an additional 3 in foreclosure.
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The median sale price of single-family homes statewide dropped almost 5 percent to $265,000 in June, down from $278,000 in June 2011, according to The Warren Group, a firm that tracks real estate data and is the publisher ofThe Commercial Record.
"The year-to-date median sale price is $233,000, down 5.5 percent from $246,750 during the same period last year. Quarterly prices dropped 4.6 percent to $248,000, down from $260,000 during the second quarter 2011," the firm reported.
While the state and town's price picture is not that rosey, Connecticut does continue to enjoy an increase in the number of houses sold, The Warren Group reported. The latest data shows that the number of sales has slowed, though.
“While it’s positive that sales remained about the same as last year, it looks like the market lost some momentum in June. Connecticut home sales are not as strong as in other parts of New England,” said The Warren Group CEO Timothy M. Warren Jr., in a press release posted on the company's website. “Hopefully the local consumer confidence combined with low mortgage rates will help the market a great deal.”
“Median prices have continued to decline this year, and the trend is expected to continue until home sales put up stronger numbers,” Warren added.