Date: Fri 06-Nov-1998

Publication: Bee

Author: KAAREN

Quick Words:

real-estate-housing-prices

Full Text:

CPEC Survey Shows-- Newtown's Residential Sales Prices Surge Ahead Of State

Norms

HARTFORD -- After a spectacular roller coaster ride throughout the last

decade, Connecticut home prices are on an upward trend, but only 19 towns --

including Newtown -- are above their peak 1989 levels.

According to a report prepared by the Connecticut Policy and Economic Council

(CPEC) using data collected by the state Office of Policy and Management, the

median residential sales price in Connecticut rose 1.4 percent, to $140,000,

between 1989 and 1997. In Newtown, the median price rose by 2.7 percent, to

$226,000, CPEC said.

Similarly, the number of sales in recent years also is increasing, jumping 8.5

percent statewide -- from 39,332 in 1996 to 42,690 in 1997. However, for the

ten-year period starting in 1987 the total number of sales decreased 34.4

percent. Total sales in 1987 were 65,092, compared with the 1997 sales of

42,690.

In contrast, Newtown residential sales increased 16.3 percent between 1987 and

1997. According to the CPEC report, there were 398 residential sales in

Newtown in 1987, 352 in 1989, 503 in 1996, and 463 in 1997. Between 1989 and

1997, residential sales in Newtown increased 31.5 percent.

Recently, the real estate market has enjoyed gains in the number of sales

throughout most of the state, except in Windham County. Because of a growing

economy and low mortgage and unemployment rates, prospective homebuyers found

it more desirable to buy a house in 1997, the report said. Also, declining

mill rates and affordable housing prices in some towns and cities also

contributed to increased sales.

According to the report, almost 67 percent of Connecticut's 169 municipalities

experienced an increase in the number of residential sales in 1997. Only 5

percent of towns and cities had a decrease in sales of 25 percent or more.

They were primarily small, rural towns with low annual sales volume. Hartford

and New Haven, with median residential sales prices of less than $80,000, saw

their sales jump by more than 25 percent.

Fairfield County grew the most in median residential sales price at 4 percent,

to $229,900, followed by Litchfield County (3 percent), Tolland (1 percent)

and Middlesex County (.7 percent).

Four Connecticut counties saw a decline in their median residential sales

prices. New Haven, Hartford and New London Counties each dropped 2 percent.

Windham County dropped 4 percent to a median residential sales price of

$90,000.

The top five median residential sales prices in 1997 were reported in the

wealthy communities of Fairfield County. New Canaan's price led the state with

$599,000, followed by Greenwich, Weston, Darien and Westport. Conversely, the

lowest median residential sales prices occurred in the major cities, except in

the town of Windham. Waterbury had the lowest median residential sales price

at $74,000; Bridgeport was $79,900.

According to CPEC, the median sales price in Newtown was $222,625 in 1987;

$220,000 in 1989; $225,000 in 1996, and $226,000 in 1997. Monroe had a higher

median sales price, $237,000, in 1987, but by 1997 the median price was still

below that at $220,000.

The median sales price in Bethel in 1997 was $169,006; Brookfield, $195,350;

Danbury, $149,000; New Fairfield, $210,000; Ridgefield, $338,750; Redding,

$340,000.

1989 Peak

Only 19 towns in the state were at or above their 1989 prices by 1997. Eleven

of these towns, including Newtown, are in Fairfield County. The other eight

towns are scattered around the state.

Connecticut's major cities saw their prices drop significantly over the eight

years between 1989 and 1997. Hartford declined by 42 percent; New Britain by

41 percent; Bridgeport, 40 percent; New Haven, 37 percent, and Waterbury

almost 36 percent. Several large suburban towns, especially in Hartford

County, took a big hit. East Hartford's median price declined by 34 percent,

followed by Manchester, 29 percent; Wethersfield, 28 percent, and West

Hartford, 28 percent.

Only Norfolk's median residential sales price grew faster than the inflation

rate over the last 10 years. Norfolk prices rose 56.1 percent, while the

Consumer Price Index increased 42.3 percent. The statewide median price for

1997 was 2.9 percent higher than in 1987 and 9.7 percent below the 1989 peak.

There are many signs that the housing market is on the rebound throughout the

state, but it will be a long time before Connecticut's real estate market

completes its recovery, CPEC said. Even as the number of residential sales

climbs once again, the level of market activity statewide still remains about

23,000 below that of 1986 peak sales levels.

Located in Hartford, CPEC is a nonprofit, nonpartisan public policy research

organization. Founded in 1942, it is supported by businesses, professional

firms, municipalities, civic organizations, and individuals throughout the

state.