Wallingford Market Update November 2008

The Wallingford housing market took a downward turn in November, with the fewest number of homes selling in the past 6 months. They also took an average 32% longer to sell at 75 days, the longest since June. It seems that most buyers were leery of the economic situation and were waiting to see what the Feds were going to do about the mortgage industry’s woes. While the average sales price increased, this was due to 6 brand new $500,000+ homes in a new development (The Willows) selling within a few days of each other.

Condos are still difficult to accurately analyze since there are so few selling. The absorption rate jumped by about 50%, but again, with only 2 condos selling in the month there aren’t many meaningful metrics to report on, other than the fact that condos simply aren’t selling right now. Five have sold in the last 3 months, hardly indicative of any kind of demand, and to make matters worse, there is now an even larger number for sale. The coming weeks and months will be interesting to watch as the situations with the economy, the mortgage rate’s possible descent to 4.5%, and the various bailouts that are in the making all begin to have their respective effects on the housing market. Hopefully, we’re seeing the bottom of the slide and the market will rebound soon. Only time will tell. Here’s the comparison of the last three months:

Single Family Homes

Sep 2008

Oct 2008

Nov 2008

New Listings

34

30

24

Total Listings

186

148

177

Pending Sales

17

23

17

Homes Sold

22

24

19

Expired Listings

13

25

27

Average Days on Market

57

57

75

Average Price/SqFt

$185

$182

$188

Average Sales Price

$286,940

$289,560

$317,352

Absorption Rate (# of weeks to sell current inventory at present rate of sales)

37

27

40

Condominiums

Sep 2008

Oct 2008

Nov 2008

New Listings

16

8

16

Total Listings

76

57

87

Pending Sales

8

8

5

Condos Sold

1

2

2

Expired Listings

8

15

4

Average Days on Market

121

69

204

Average Price/SqFt

$169

$178

$144

Average Sales Price

$590,000

$285,000

$168,500

Absorption Rate (# of weeks to sell current inventory at present rate of sales)

329

124

189


For the purposes of housing market info, it is usually considered to be a seller’s market when there is less than 13 weeks of inventory on the market; 13-26 weeks of inventory is considered a balanced market, and more than 26 weeks indicates a buyer’s market.

Data used was provided by the CTMLS (Connecticut Multiple Listing Service.

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