Connecticut Real Estate News
Farmington Connecticut Real Estate Analysis
Continuing our analysis of Connecticut, here is an analysis of the Farmington single family residential sales over the past year.
To find out what has been occurring in Farmington data from the Connecticut Multiple Listing Service was utilized. Although not all sales use this service, the majority of arms length transactions due go through this process. The use of the MLS also weeds out family transactions and auctions sales which would tend to skew market value indicators due to the nature of these transfers.
FannieMae has developed an analysis for appraisers to use to give a view of the market for a specific property. The idea is to see how prices have changed over the past year, what is happening with absorption rates and for houses currently for sale. Although it often results in to limited statistical information when targeting an individual property type within a neighborhood, it can be very helpful in determining what is happening with a town overall.
After a small drop in sales in the prior 4-6 months, sales have increased significantly in the past three months. The prior 7-12 months showed 100 sales for a 6 month period while the last 3 months had 71 sales. Projecting that figure over a six month period to correlate with the prior 7-12 months would show a 42% increase in sales. This is best shown in the absorption rate which over the last 3 months is 23.7% versus 16.7% for the prior 7-12 months.
The number of listings has also increased resulting in a stable housing supply of 11.5 months.
The median price for houses has increased 8.4% from $368,750 to $400,000. The increase appears to have all occurred within the last three months as the prior three months actually showed a decline of median sales prices of 4.5%.
Marketing time for sales has increased from 27 days for the first six months to 55 day3 months. Some caution should be given to these figures as they do not reflect prior listings that have expired and relisted, and only reflect their current listings marketing time. On market properties days on the market have shown increase from 53 days to 74, which would be expected considering the increase in listings.
The percentage of sales price to listing price has remained stable as well at 97%.
From the sales data it appears that the Farmington market is show signs of recovery with stable marketing times and values that are starting to increase.