Wallingford Market Update May 2009

The Wallingford housing market continues its slow, confusing march towards recovery. There were more houses listed for sale, but fewer houses sold than in April; the houses that sold were on the market 22% longer than April, but both the sales price and price per square foot were up. In addition, there were 80% more pending sales in April, but the total inventory went up by the same level.

Condo sales were also mixed. Sales dropped by 50%, but pending sales doubled; days on market dropped by 48%, but the average sales price sank by 16% to its lowest level since January.

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:

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: 06492, market update, real estate, Wallingford