The full impact of last fall’s credit crunch shows up in the latest data from Connecticut’s housing market. In November prices saw their biggest dip in 20 years. Harriet Jones reports.
Closings in November reflect deals that were initially struck in September last year. Vincent Valvo of the Warren Group, which publishes real estate data, says housing market deals reflected the economic catastrophe that hit the nation.
"September was when Fannie Mae and Freddie Mac were taken over, when Lehman Brothers failed, when the Treasury Department announced that global financial markets were going to fail, when the bailout bill wound its way through Congress, unsuccessfully the first time. This was a nightmare financial situation which inevitably scared buyers away."
The result in Connecticut – a more than 16 percent decline in prices – the biggest drop since the Warren Group began keeping records in the late 80s. Sales of single family homes were down almost 27 percent, also a 20 year record fall. Connecticut fares no worse than its neighbors, with Massachusetts and Rhode Island also showing steep declines in prices and sales.
Valvo says he doesn’t see any near term prospect for improvement as continuing disastrous economic news and major layoffs begin to hit the market.