Categorized | Residential

Connecticut Real Estate Market Worst in Northeast in 2011

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The housing market in Connecticut grossly underperformed in comparison to its neighboring states during the past year. Single-family home sales dropped more than eight percent, while prices fell roughly two percent. Both condominium and multi-family home sales decreased about sixteen percent, with prices in each sector falling just over four percent on average.

The struggles experienced in the housing market in Connecticut in 2011 can be attributed to the lackluster year that took place on Wall Street. The housing market of certain areas in Connecticut, such as Fairfield County, typically mimics the performance of Wall Street.

Fairfield County experienced a larger number of foreclosures than the rest of the state, with the majority of foreclosures taking place in the lower-end neighborhoods. While Fairfield County has received much of the attention regarding the down year in real estate due to the influence that Wall Street has on the market there, it actually performed in line with the rest of the state.

Analysts do not believe that the market will rebound in 2012. It is likely that both the number of sales, and also the average home price will continue to struggle in the next year. While they do believe that the market has already hit rock bottom, they are not overly optimistic that there will be a strong improvement in performance for quite some time. In fact, some analysts believe that signs of a strong recovery in the housing market will not be evident for at least a few more years.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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