Connecticut Real Estate Market Outlook

Connecticut is known for its mix of high-end properties and regular-priced houses. Thanks to Wall Street for keeping most homes above the $1 million price in the southwestern part of the state. New York metropolitan has indeed extended its luxury to a significant portion of Connecticut. But as the economy crumbled, so does the financial capital of America and Connecticut was not spared.

Homeowners have chosen Greenwich over New York City because it’s a less expensive real estate market compared to the latter. The city however still attracts posh residents to settle in without having to adjust to the Manhattan lifestyle. Since Greenwich is located near NYC, the community has invested heavily in financial markets. But as Wall Street’s investors took a detour when the Dow Jones and S&P 500 hit record lows last year, Greenwich suddenly felt the fury of the crisis. Now, home values have fallen and RealtyOutlook.com predicts it will drop by 13.5 percent this year.

Hartford has been battered by rising foreclosures. The insurance industry is currently feeling the pinch of the credit crisis and the city’s insurance firms have no other choice but to accept this fact. Housing sales are down and values are dipping to alarming numbers. Prices are set to deflate by 11 percent this year.

Bridgeport is currently undergoing a major redevelopment but its foreclosures rates remain high. Home prices therefore are at low figures with the high possibility of deflating further by 12.5 percent. We expect no growth in housing construction either.

Having Fortune 500 companies is an asset for Stamford but some firms have already relocated to other areas at the onset of the recession. The city has been hit by Wall Street’s tumult which led banks to restrict the easy flow of credit for borrowers. Like its nearby cities, Stamford will have more houses in the market but only a few interested buyers. Expect a 12 percent fall in home prices this year.

In New Haven, Yale University provides employment and other income to the state through rents from students. Together with other institutions such as Southern Connecticut State University, Gateway Community College and Albertus Magnus College, New Haven is set to defy a larger effect of the downturn with a projected home value deflation of only 8 percent in 2009.