I wasn't surprised to see the number of sales down for the first quarter of 2007 as compared to the same period in 2006. In fact, the number of single family homes sold through the first 3 months of 2007 were down by 7.48% according to statistics reported by the Eastern Connecticut Association of RealtorsÂ®. I was surprised to see condominium sales down by over 25% and multi-families dropping by almost 40%. The good news (not sure this is exactly good news) is that while the number of sales has dropped, prices have remained fairly steady as median single family sale prices dropped by only 1.18% in that time period. Looking ahead to the second quarter, pending sales seem to be on the rise even if prices are not.
Pricing remains critical. The Eastern CT area still has a glut of homes on the market, overpriced by sellers with high expectations. Sadly, many sellers are getting bad advice from agents, who have never experienced a down market and don't understand that if a seller bought a home in 2004, they will most likely lose money on the sale. If you are putting your home on the market in 2007, be sure to seek good counsel from an agent who has the experience of the early 90's, when the market experience similar conditions.