Some new metrics show the Connecticut housing market remains fragile as it lags behind its neighbor to the north.
According to new data provided by the federal government and The Warren Group which tracks real estate trends, home construction permits in Connecticut were down from July 2016 to July 2017 by 26 percent, while in Massachusetts, the figures were up by the same margin over the same period of time.
In addition to construction, the median sales price in Connecticut increased by only one percent over that span, while the median price in Massachusetts increased by six percent.
Anna Sava, a real estate agent who specializes in homes in Connecticut’s Farmington Valley, said it isn’t all negative in Connecticut simply because the quality of life is so high with high achieving schools, and access to major cities like New York and Boston.
However, she said the cost of living is what she thinks has led to the real estate slow-down.
“Connecticut is one of the warmest and active places you could be but unfortunately it’s a little bit harder to live here from an economic standpoint and that’s what we’re up against,” Sava said.
She said higher-priced homes are more difficult to sell for their value because the taxes will be high, too. She added that leads to lower sale prices on homes that in other markets would sell for much more.
“The buyer that we have can’t necessarily afford the taxes that are going along with that home so in order to make up the difference, the seller is putting a lower price on their home, but it still cannot work with the taxes that are getting lopped onto that mortgage payment," Sava said.
Sava said she’s an optimist as far as the Connecticut market making a comeback goes, but adds she isn’t sure when that’s going to happen.
“We’re still as great as we ever were but it takes a bit longer for us to do the real estate business piece," she said.