Connecticut’s housing market has taken a hit since the first-time homebuyer tax credits ended and sales have dropped to the lowest record for the month of August in 20 years, housing experts said.
While sales are down, prices are increasing in several counties.
Sales of single-family houses in the state fell 14.9 percent in August 2010 from a year before, according to the Warren Group, which publishes The Commercial Record.
"Home sales have dropped all over the country in the aftermath of the homebuyer tax credit, and Connecticut is no exception," Timothy Warren Jr., CEO of The Warren Group said in a news release. "We are going to have to see improved consumer confidence and employment figures before we see an improved real estate market."
First-time homebuyers were eligible for an $8,000 credit on binding contracts in place by April 30, 2010. Purchases had to be completed by Sept. 30, 2010. The $6,500 tax credit for repeat homebuyers also expired.
In real numbers, people sold 2,218 single-family homes in August, down from 2,607 a year earlier.
June was the only month of this year where more than 3,000 houses were sold.
Single-family homes are not the only residences to take a hit. Condo sales dropped 26.6 percent from a year ago and the only county to see an increase in sales for both single-family homes and condos is exclusive Fairfield County, where home sales jumped 9.1 percent and condos were up 15 percent.
What did rise is the price for a single-family home, except for Tolland and Windham counties.
The median price jumped 7 percent to $272,250 in August from $254,000, reaching the highest price recorded since August 2008.
The median condo price in August increased 6.9 percent to $193,000, up from $180,500. This is the highest average since October 2008.