Markets around the country suffered from inventory shortage in February, and Connecticut was no exception, according to data from ""the Warren Group"":http://www.thewarrengroup.com/.[IMAGE]
The real estate data provider's February report shows single-family home sales dropped 7.7 percent year-over-year in the Constitution State, decreasing to 1,149. The decline puts an end to a 13-month streak of year-over-year sales improvements.
""Two factors caused this modest drop in February: low inventory and a comparison with a strong previous year of sales,"" said Timothy M. Warren Jr., CEO of the Warren Group. ""Even so, I'm still hopeful for a strong spring market. As more sellers list their homes in the spring, activity will pick back up.""[COLUMN_BREAK]
Year-to-date, single-family home sales are down almost 2 percent from the same period in 2012. Statewide, a total of 2,542 transactions were completed in January and February, down from 2,577 last year.
However, the current state of inventory does have one upside.
""With such low inventory, we're seeing bidding wars--homes selling above the asking price,"" Warren said. ""As prices rise, more sellers begin to list their property which in turn pumps up sales volume.""
According to the Warren Group, the median price for a single-family home in Connecticut rose to $225,000 from $210,000 in February 2012--a 7 percent increase. The year-to-date median home price is up about the same amount.
Condominium sales also experienced a decrease in February, dropping to their lowest level in two years. There were 306 condo sales throughout Connecticut in February, down almost 11 percent year-over-year.
While single-family prices got a boost as a result of low inventory, the same was not true for condominiums. The median price for condos sold statewide in February decreased nearly 10 percent in $139,516, down from $155,000 in the same month last year.