NL County home sales lag behind rest of state

While real estate sales heated up in wealthier portions of the state, January numbers released Monday showed New London County was left out in the cold.

New real estate figures from The Warren Group, publisher of The Commercial Record, revealed statewide single-family home sales were up nearly 20 percent in January over a year ago, and prices rose 6.2 percent. While New London County bucked the trend - with single-family sales up only 2 percent and prices flat - a leading real estate expert said the statewide numbers were a positive indication that home values are on the way up.

"I think that higher sales volume is starting to turn the tide, and we might be seeing the beginning of a seller's market," said Timothy M. Warren Jr., chief executive of The Warren Group, in a podcast accompanying the new sales figures. "As buyers find more competition for homes they are interested in, they will have to stretch a bit to have their offers taken seriously."

Warren said January was the third straight month in which Connecticut sales rose year-over-year by double-digit percentages. He also pointed out that January was the second month in a row that Connecticut has seen rises in the median price of single-family homes, which compares favorably with 2009, when prices were off 25 to 35 percent at the beginning of the year.

"The market is definitely improving," he said. "Higher sales volume will naturally lead to higher prices."

But real estate sales in wealthy towns might be poised for more explosive growth than in the rest of the state, if the latest figures are indicative of a trend, he said.

While wealthy Fairfield County was experiencing a big rebound of nearly 60 percent in sales and almost 30 percent in prices, local figures showed only two more single-family homes were sold in January than in the same period a year ago. And the median price remained unchanged at $204,500.

The condominium market in New London County was mixed in January, with sales off nearly 24 percent, but the median price paid up 16 percent, to $203,054 - very close to the median for single-family homes.

The statewide condo market saw sales climb by 12.5 percent, but the median price remained flat at $185,000.

Warren said it's unclear whether the rise in home sales is a temporary phenomenon related to tax credits aimed at first-time and move-up buyers. But he believes the market will remain solid in the second half of the year, even if interest rates rise as expected.

"If the economy improves and jobs are created, demand for housing will remain strong," he said.