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North Haven Home Prices Slip $76,000 Since 2006

Home values all over New Haven have dropped continuously since the market peaked in 2006, according to the UConn School of Business's Center for Real Estate and Urban Economic Studies. Here's a 2012 'State of the Real Estate.'

North Haven Home Prices Slip $76,000 Since 2006

Much of the United States has been on a slow path to recovery following the "Great Recession," but recent real estate data reveal that New Haven County home values have dropped continuously since 2006, when the market peaked.

According to the UConn School of Business’s Center for Real Estate and Urban Economic Studies, mid-tier* home values in New Haven County towns have diminished by an average of $50,000 since 2006. North Haven's mid-tier homes dropped nearly $79,000 since their peak. 

Dr. John Glascock, director of the Center, blames the “severe downturn” in real estate on the national liquidity crisis, which led to the bankruptcy of large financial institutions like Lehman Brothers.

While some look back at the subprime mortgage crisis as a huge factor that lead to the Great Recession, Glascock said only 15 percent of the general economic calamity could be attributed to subprime mortgages.

Town with a Patch Website

Last Increase in Mid-Tier Home Values

Branford

2011 - Qtr 4

Hamden

2012 - Qtr 1

Middlebury

2010- Qtr 2

Milford

2012- Qtr 1

Naugatuck

2010- Qtr 2

North Haven

2012 - Qtr 1

Woodbridge

2010- Qtr 2

[Editor’s Note: UConn’s Center for Real Estate and Urban Economic Studies  produces and updates “constant quality” price indices for 69 towns in Connecticut. The figures date back to 1999 and estimate the prices that homes with specific characteristics will sell for in a given quarter, thus neutralizing market demand and making it possible to compare year-to-year market information.]

When Lehman Brothers failed, Glascock said, Real Estate Investment Trust Prices “dropped like a rock.” The dip in housing prices followed, along with climbing unemployment rates and a sour economy.

The combined liquidity crisis and high rate of unemployment contributed to the lasting housing downturn, Glascock said. “People will hold off on purchasing a home when there’s high unemployment.”

Mid-Tier: Mid-tier describes the characteristics of homes in the “middle” of each market—those homes that fall into the middle of the range of square footage, age, and price within a town. See the attached PDF for details for each market in the state.

Anthony Karge contributed to this report.

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