Despite continuing declines in median sales prices in New Haven, Connecticut, recent months have offered optimistic views of the future of the New Haven real estate market due to increasing home sales topping the previous year’s level during the same period. Many real estate experts have attributed the federal tax credit for first-time homebuyers to the increase in sales. However, realtors are also quick to point out that it is only the homes in the lower price ranges that are selling. The luxury home market continues to struggle as it has experienced extremely sluggish activity over the past months. With the federal tax credit about to expire though, many real estate experts are concerned whether the real estate in New Haven will continue to show the improvements it has made over the last few months.
The New Haven Register has reported how successful the federal tax credit for first time homebuyers has been in spurring activity in the New Haven real estate market. Over the past few months, New Haven has experienced an increase in home sales, a 9 percent increase compared to that of the same period the year before. 1,517 homes sold last quarter in New Haven, an increase from the 1,390 sold during the same quarter in 2008. Realtors have noted that most homebuyers are coming onto the market with more confidence and the desire to take advantage of the tax credit. However, the median sales price in New Haven has declined to $299,297, a 13 percent decline from $344,175 a year before. Almost all of the home sales consist of less expensive homes catering to first time, entry-level buyers. Realtors continue to note that the more expensive homes are still struggling to find buyers.
On another note, the New Haven Register has also reported the recent improvements seen in the commercial real estate market. New Haven has posted a vacancy rated of 10.6 percent, down from the 13.7 percent posted in the third quarter of 2008. Realtors have reported an increase in the number of tenants looking for office space in New Haven over the past few months. New Haven is known for having a fairly stable commercial real estate market due to a number of well established businesses and institutions such as Yale University. However, just outside of New Haven, vacancy rates for commercial real estate have increased slightly, as most businesses tend to stay only in the business sector in the center of the city.