1 minute read
Housing
By Michael Reddy
As represented by the graph, housing prices in the New Haven-Milford area have been on a steady incline since the first quarter of 2014. At that time, the average price of a house in the area was $171,650, and, as of the fourth quarter of 2019, the average price has risen to an average price of $191,780. This represents a $20,200 increase and a growth of 10.54 percent of value. Housing prices have also been on the rise since the first quarter of 2014 in the BridgeportStamford-Norwalk area. During the first quarter of 2014 the average price of a home in this area was $187,930, and, as of the fourth quarter of 2019, it had risen to $207,570. This represents a $19,640 increase and a growth of 9.54 percent, being slightly lower than New Haven-Milford. However the two had very different 2019s as New HavenMilford started 2019 with an average home price of $183,760, showing an increase of $8,020, wheras Bridgeport-Stamford-Norwalk started 2019 with an average home price of $203,140 showing an increase of $4,430.
However, rising housing rates are likely a thing of the past as the housing market looks to be in trouble due to the fallout from COVID-19. With many nonessential businesses closed, unemployment has risen, and rent payments aren’t being made. Thus, property value is falling. The National Association of Realtors has surveyed its members, who reported an 11 percent drop in buyer traffic and 7 percent lower seller traffic. The NAR predicts a 10 percent reduction in sales, at least over the short term, as a consequence of the coronavirus. Property values are likely to fall in New Haven-Milford as well as the BridgeportStamford-Norwalk.
Figure 2: All-Transactions House Price Index, New Haven-Milford (Msa)
Figure 3: All-Transactions House Price Index, Bridgeport-Stamford-Norwalk
Michael Reddy ’20
Major: Economics Hometown: Forest Hills, New York
www.law.com/ctlawtribune/2020/03/18/the-coronaviruspandemic-and-the-crisis-in-real-estate/
Data are from the Federal Reserve Bank of St. Louis FRED data (https://fred.stlouisfed.org/series/ATNHPIUS35300Q), (https://fred.stlouisfed.org/series/ATNHPIUS14860Q).
