Connecticut home sales at 20-year low

Home sales in Connecticut took a big dip in August, as moving activity in the state slowed to a pace not seen in 20 years.

There were 2,218 home sales in the state in August, a decrease of 14.9 percent from 2,607 a year earlier and also down from July's mark of 2,306 sales, reported the Warren Group. August's tally marked two straight months of home sales under 3,000 in Connecticut, and was the lowest total recorded for that month in two decades, said the report.

While 17,113 homes have been sold in the state so far this year - a 13.6 percent increase over the 15,078 home sales that were recorded at this point last year - much of that may have been the result of the homebuyer tax credit, which gave many homebuyers considering moving the incentive to buy a new home.

"Home sales have dropped all over the country in the aftermath of the homebuyer tax credit, and Connecticut is no exception," the trade publication's CEO, Thomas Warren, said. "We are going to have to see improved consumer confidence and employment figures before we see an improved real estate market."

Unemployment in Connecticut is generally in line with national figures. According to the Bureau of Labor Statistics, the unemployment rate there is 9.1 percent - not far from the national average of 9.6 percent - while roughly 171,400 Connecticut residents are unemployed.
 

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