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Owning a Home is a Great Investment

Residential Real Estate - Owning a Home is a Great Investment

By Barry Rosa, Vice President
Prudential Connecticut Realty
brosa@prudentialct.com

January 30, 2009

We're in uncertain times in the real estate market and the economy.  News headlines are filled with stories that talk about falling property values, a weak economy, falling numbers of sales and on and on. 

What is reality?

Reality check one:  We are in difficult times in the real estate market.  Despite the fact that Connecticut's numbers are pretty good, we are getting lumped together with areas of the nation that are not doing so well.  You would not know this from reading the headlines.

Reality check two:  Most folks that purchase a home or a condo as a place to live are really making that choice as a place to live.  Home owners are one type of purchaser while investors are an entirely different category, with different motivations entirely.

Reality check three:  Home values increase significantly with time, but sure as heck normally do not go up 10% in a typical year.  This should never be an expectation.

We assembled median (middle of the price range) sales price data for single-family homes in a number of communities around Connecticut.  These communities were chosen randomly.

Here's what we found:

Median Sales Price Change

 

 

 

Single-Family Homes

 

 

 

Select CT Communities

 

 

 

  

 

 

 

1995-2008

 

 

 

 

 

 

 

 

Median Single-Family Sales Price

Median Single-Family Sales Price

  

Community

Sales Price 1995

Sales Price 2008

% Price Change

 

 

 

  

 

 

 

  

Avon

              $242,000

              $474,000

196%

Fairfield

              $250,000

              $615,000

246%

Farmington

              $190,000

              $375,000

197%

Glastonbury

              $181,000

              $388,000

214%

Greenwich

              $550,000

           $2,000,000

364%

Guilford

              $183,000

              $409,000

223%

Hartford

                $77,000

              $153,000

199%

Madison

              $220,000

              $465,000

211%

Milford

              $145,000

              $320,000

221%

Norwalk

              $194,000

              $515,000

265%

Norwich

                $89,000

              $169,000

190%

Simsbury

              $190,000

              $372,000

196%

Stamford

              $263,000

              $643,000

244%

Stonington

              $130,000

              $299,000

230%

Trumbull

              $205,000

              $420,000

205%

Waterford

              $122,000

              $258,000

211%

Windsor

              $125,000

              $225,000

180%

Woodstock

              $117,000

              $254,000

217%

Now, before anyone says it:  This does not mean that every home in each of these communities went up by the same amount:  Some would be more, some less.

But, clearly, the numbers show reality real well.  Owning a home has been a good investment.

Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
www.connecticuthomesforsale.com
Cell - (203) 470-9818

0 commentsBob and Richelle Ward • February 08 2009 04:58PM
Owning a Home is a Great Investment
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Residential Real Estate - Owning a Home is a Great Investment By Barry Rosa, Vice President Prudential Connecticut Realty brosa@prudentialct. com January 30, 2009 We're in uncertain times in the real estate market and the economy. News… more