The Great Recession had many negative impacts on individuals’ personal finances, the job market and especially the housing market between the years of 2007 and 2009. In the last decade, the national economy has slowly begun to grow and improve again.
However, a new report states that the Connecticut housing market could still be feeling the considerable effects of the recession now, even as we welcome 2020.
Report: Many states still below peak home prices
A new report found that although home prices increased at the national level, there are 10 states whose home prices and equity are still below the peak prices of July 2006. And Connecticut is leading the way.
According to this report, as well as the Hartford Courant:
- Connecticut’s home prices have decreased by 17% since 2006;
- Meanwhile, prices for single-family homes have increased overall; and
- 2019 brought Connecticut the highest median sale prices in the last 11 years.
The state home sale market did not change much throughout all of 2019, leaving Connecticut in an apparent rut.
What does this mean?
There is no doubt that a decreasing or stagnant housing market can have a direct impact on the state and national economy. But what does it mean for home buyers, sellers and homeowners?
- There is more supply than demand in the market, meaning there are more sellers than buyers;
- Closing prices are often lower than the ticket prices;
- Houses often end up staying on the market for long periods under “For Sale” or “Sale Pending,”; and
- Low and dropping housing prices affect consumer confidence, and therefore consumer spending. This impacts the entire economy.
The fact that the median sale prices have slightly increased is a good sign for both sellers and buyers in the real estate market. However, individuals must understand the impacts that this new report could have on their real estate ventures.