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:

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.

Welcome back!

Tagged as: 06492, Business, Economy, Financial Services, market update, Mortgage, real estate, Real estate economics, sales, Wallingford