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Hartford, CT - Newest New Home Sales Numbers Suggest Market Fall is Deepening

Posted on: Feb 06, 2012 09:24:19 AM

In November, there was a drop year-over-year in new home sales in the Hartford, CT market, and with a percentage fall more severe than October 2011, there were signals the market may be worsening. There was a 48.7% fall in new home sales from a year earlier. This came after a 38.9% drop year-over-year in October.

A total of 353 new homes were sold during the 12 months that ended in November, down from 372 for the year that ended in October.

Out of all housing sales, new home sales accounted for 2.2%. This is less than the 3.9% of sales a year earlier. Sales of new and existing homes dipped year-over-year in November after also falling in October year-over-year.

Pricing and Mortgage Trends

In November, the average price of newly sold homes climbed year-over-year to $389,246 per unit, a 14.9% bump. This lift is smaller than the 28.9% surge in October year-over-year.

Average mortgage size on new homes slipped year-over-year in contrast to new home prices. It declined 2.1% in November from a year earlier to $275,542. Average mortgage size grew 39.1% in October 2011 from a year earlier. For new home sales, the percentage of the sale price that was being financed sank 12.3 percentage points year-over-year to 70.8% in November 2011. This was a swing downward after a 6.1 percentage point rise in October from a year earlier.

Other Market Trends

As a share of new home sales, single-family home sales have climbed from last year while the share belonging to attached units has fallen. The share of new home sales belonging to single-family homes rose from 76.9% in November 2010 to 80.0% of sales in November 2011. At the same time, the share of new home sales belonging to attached units declined to 20.0% of sales from 23.1% of sales.

The average unit size of newly sold homes slid 34.6% year-over-year to 1,584 square feet in November 2011. The average size of newly sold homes moved from 2,391 square feet in October 2010 to 2,566 square feet in October 2011.

Foreclosures and real estate owned (REO) sales did not look to be a burden on the market. Together, foreclosures plus REO sales made up 19.4% of existing home sales. In November 2010, they represented 27.6%. The percentage of existing home sales involving foreclosures dipped to 10.3% in November from 15.0% a year earlier while REO sales as a percentage of existing home sales slipped to 9.1% from 12.5% a year earlier.

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