HCPR: Muted Third Quarter Follows Tax Credit

A Touch of Color in the TreesHartford County residential sales fell significantly in the third quarter of 2010 versus the third quarter of 2009 as buyers took a breather following the June expiration of the Federal Home Buyer Tax Credit. Median prices rose modestly over the year-previous quarter, while another measure of pricing, the median price per square foot, fell a comparable amount. Most noteworthy was the change in the mix of homes that sold as the Tax Credit phased out of the markets.

Single-Family Homes
Third quarter sales of single-family homes fell 32.5% compared to the year-earlier period. The total number of 1,314 transactions is the lowest tally for a third quarter since the CTMLS began tracking data in 2000.

The median price for single-family homes in the County increased by 4.3% from $232,000 to $242,000. Sales price per square foot moved in the opposite direction, falling 2.9% from $147/sqft to $143/sqft. Finally, the median time on market increased from 37 days to 47 days.

Hartford County condominiums once again trended in the same directions as the single-family homes during the quarter. The number of sales was down 39.0% over the third quarter last year, with the 368 total transactions also the lowest on record for the quarter.

The median sales price rose 2.9% during the quarter, from $170,000 to $175,000, and the median price per square foot fell from $137/sqft to $134/sqft. In contrast to Single-Families, condominiums experienced a decrease in median days on market from 57 to 53 days.

Changing Sales Mix After Credit Impacts Statistics
The Home Buyer Tax Credit pulled a disproportionate number of lower priced sales into the second quarter of the year versus higher priced sales. As a result of the changing property mix, the median sales price for the County increased at the same time that the median price per square foot suggests that home values were falling.

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