Ray Dunaway talks Connecticut’s Real Estate market with Cassidy Murphy, Editorial & Media Relations Director for The Warren Group.
The Warren Group collects and analyzes Real Estate data for much of New England. According to Murphy, although there is an overall shortage of inventory, the state of Connecticut is having the opposite problem. In addition, the market in Connecticut is much more reasonable than in major metro areas where first time home buyers can be priced out.
Dunaway asks Murphy if the values of homes are dropping.
“Not so much,” she says. “What’s happening is that we’re still coming out of the recession when prices took a major dive and they haven’t yet recovered from that. However, prices now are not continuing to fall.”
“If somebody is under water and they owe more than the market value,” asks Dunaway, “would that dissuade them from selling their house?”
“Absolutely,” says Murphy. “Even if you’re not under water you may not have enough equity to make it worth selling.”
Making the point that for many people, buying a house is the biggest investment they’ll make in their life time, Dunaway asks what other important headlines are happening in real estate.
“It’s tough out there ,” says Murphy, adding…“unless you’re in Connecticut.”
I don’t know why more people aren’t moving to Connecticut,” she says. “The houses are reasonably affordable and there’s a lot of them.”
According to Murphy, the major metro areas, particularly in Boston where The Warren Group is located, it’s a “blood bath.”
People are offering above and beyond the asking price while waving inspections. “It’s rough,” she says.
“It was that way here in the 80’s,” says Dunaway. “ By the time you’d run to the office to put a contract together, somebody would have already bid higher than what you were bidding.”
Murphy concludes by noting the volume of houses sold in Connecticut largely depends on the month, with spring being the time when people buy and sell the most. According to The Warren Group’s February release, there were about 1,7000 homes sold in Connecticut.
“I do think housing prices reflects the economy to a degree,” says Dunaway, concluding that he has heard that places like Pittsfield and Springfield in Western Massachusetts are doing better in real estate than in Connecticut.