Low interest rates helped drive up the number of Hartford-area home sales by 7.6% in July, and sale prices also rose, thanks to fewer listings and competition among buyers, according to new data.
There were 780 single-family home sales in the Hartford area last month, an increase of 55 transactions compared to July 2019, the Greater Hartford Association of Realtors (GHAR) said Monday.
The median sale price rose to $285,000, up from $265,000 a year earlier, GHAR said. Pending sales were up 31.5% in July.
For the first seven months of 2020, sales in the Hartford area have decreased 2.6%, from 3,804 to 3,704, while the median sale price has increased 6.1%, from $245,000 to $260,000. Listed homes are spending 58 days on the market, which is down by 3.3%. Meanwhile, the number of new listings has fallen by 14.5%.
Area Realtors have said that Connecticut is experiencing its first seller’s market since before the 2008 financial crisis because of record low mortgage rates (in the low 3% range), pent-up demand as the state eases COVID-19-related restrictions, and a weak supply of inventory.
The area’s condo market also recorded an upswing in July.
Condo sales rose 16.4% from 164 to 191, and median sales price climbed 5% from $170,500 to $179,000.Â
U.S. housing market still strong
Nationally, the housing market continues to be a bright spot in the U.S. economy that has been ravaged by coronavirus.
The government said Tuesday that building permits and housing starts both surged in July and easily topped economists’ forecasts.
Homebuilders Lennar and DR Horton are also trading at record highs. So is building supplies company Masco, which makes things like shower doors, toilets and faucets.
“Homebuyer demand remains robust, inventories are tight, and there is a need for new units to keep the pace of sales going,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association, in a report Tuesday. “Housing is certainly one of the bright spots in the struggling economy.”
A CNN report contributed to this story
