Nov. single-family homes sales surged

Sales of single-family homes in November surged nearly 90 percent in New London County compared to a year ago, boosted by an $8,000 tax credit that has been extended into the new year.

A new report today by The Warren Group, publisher of The Commercial Record, gave hope to homeowners that the long-anticipated rebound in real estate prices could be around the corner. Locally, median single-family home prices increased 5.3 percent from a year ago.

Timothy Warren Jr., chief executive of The Warren Group, called the report "good news" for the real estate market in Connecticut, which saw an overall improvement in sales nearing 75 percent, while statewide prices declined only slightly.

"The jump in sales can be credited to the homebuyer tax credit and a stabilizing economy," he said in a statement. "It may be too soon to say we’re totally out of the woods, but it’s definitely a positive trend."

Perhaps most encouraging is that the number of single-family home sales through November has caught up and passed last year’s tally in New London County. And condominium sales, lagging the single-family market locally, have started to show some life, up 46.7 percent in November with prices rising 11.5 percent.

Warren said he expects sales volume statewide to increase over the next few months, partially because last year’s economic meltdown means the current market would be hard-pressed to fall much further. But the real question for homeowners is when they can expect prices to begin rising again, and Warren said the best that can be hoped is that they moderate in the spring and then start to improve gradually over time.

Real estate pros are hoping a new $6,500 tax credit for those looking to trade up or down to a new home will help stimulate the real estate market over the next few months, but Warren said it’s hard to say what will happen after the stimulus money expires in July.

"Looking ahead to next year there is some concern that the … withdrawal of support by the government could lead to problems in the real estate market," Warren said.