The slump in Connecticutâ€™s housing market deepened dramatically in January, according to new figures. As WNPRâ€™s Harriet Jones reports, prices fell by the biggest amount in more than a decade.
Despite the implosion of housing elsewhere in the nation, last year Connecticutâ€™s house prices held up surprisingly well. But 2008 looks to be the year when the Nutmeg state catches up with the downward trend elsewhere. According to the Warren Group, a Boston based real estate data firm, January saw the biggest percentage drop in single family home prices since 1995, and sales were down almost 29 percent from the same month in 2007. That sort of fall off in sales hasnâ€™t been seen since the late 80s.
Fairfield County has been partially responsible for Connecticutâ€™s better numbers until now, but this time around the stateâ€™s southwest corner was hardest hit, with a drop in prices of almost 12 percent. The rest of New England isnâ€™t faring any better â€“ median prices in Rhode Island fell 13 percent in January, and they were down more than four percent in Massachusetts. Spring usually heralds a renewal of interest in house sales, but market watchers at the Warren Group say there are ominous signs that a recovery may take much longer to materialize.