Meriden Market Update October 2009

The Meriden housing market rose sharply in October, with single family home sales rising 42% and condo sales actually doubling from 9 to 18 units sold. Median sales price and average sales price for single family homes both fell slightly, but average days on market rose by more than 50%. The inventory levels are down by about 24% from last October.

The condo market was very similar in every respect, with even larger decreases in median and average sales prices, and a larger increase in days on market. It appears that investors are beginning to take advantage of the low interest rates and still falling sales prices. As we expected, the Home Buyer Tax Credit was passed this month and was extended to include move-up buyers as well as first timers. This bodes well for home sales through the normally quiet 4th quarter up until the credit expires at the end of April 2010. We expect to see sales continue to rise through the end of the year, especially if prices continue to fall and interest rates remain in the mid to high 4 percent range. Any improvement in unemployment rates, now at about 10.2% in Connecticut, would be an added bonus.

Here’s the comparison of the last three months:

Single Family Homes

Aug 2009

Sep 2009

Oct 2009

New Listings

39

32

42

Total Listings

60

56

57

Pending Sales

38

30

32

Homes Sold

43

41

58

Expired Listings

22

32

35

Average Days on Market

94

55

84

Average Price/SqFt

$133

$117

$127

Average Sales Price

$193,907

$171,019

$180,578

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

6

6

4

Condominiums

Aug 2009

Sep 2009

Oct 2009

New Listings

13

14

12

Total Listings

19

24

19

Pending Sales

17

14

10

Condos Sold

11

9

18

Expired Listings

8

13

12

Average Days on Market

151

92

174

Average Price/SqFt

$118

$105

$120

Average Sales Price

$133,307

$146,690

$150,418

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

7

12

5


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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