Meriden Market Update May 2009

The Meriden housing market remained on the upswing last month. Pending sales were up again, and closed sales were up sharply for the second consecutive month. The inventory levels again went down, driving the absorption rate to a low for the year of 7 weeks worth of inventory. This is good news and gives an indication that Meriden might be quicker to recover than Wallingford, especially since sales prices are much lower in Meriden than most surrounding towns.

Condo sales remained fairly level, but inventory levels fell to their lowest levels of the year at 17 weeks worth. As indicated in the Wallingford Market Update, the $8000 tax credit for first time home buyers was approved and it was hoped that this, coupled with historically low interest rates, would spark some of the undecided first time buyers to take the plunge, but in our view this is not turning out to be the case. Mortgage rates have climbed sharply over the past few weeks, dulling some of the enthusiasm for home sales, and the tax credit will be gone in a little over 5 months, adding a new sense of urgency to the mix. All may not be lost, however. There is current legislation on the table to modify the tax credit so that the limit will be increased to $15,000, the deadline for using it will be extended for a year, and everyone will be able to use it, not just first timers. If this modification is passed, which is hardly assured, it should take some of the pressure off home buyers and give them an added incentive to buy soon. But we’re not assuming anything, and neither should you.

Here’s the comparison of the last three months:

*** = No stats due to no sales.

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).

Tagged as: 06450, 06451, market update, Meriden, real estate