Like in many other towns across the US, real estate values in Newtown, CT have been declining over the past year. Many residents in town know this, but don't know by how much. The rate of decline has been roughly 1% per month. So as of August, home values in Newtown had declined approximately 8% since January 2008.
When Realtors evaluate real estate market conditions, there are different factors that we take into consideration. These factors include: Median Sale Price, Median List Price, number of units sold, number of days on the market and the Sale Price to List Price Ratio. I'll do my best to explain each of these items to you.
Many people confuse the words "median" and "average". These are different mathmatical computations and the results can vary greatly. An average is determined by adding up a list of numbers and then dividing the sum by the number of items in the list (example: 10+20+60=90 90/3=30 30 is the average) To determine the median value, you must find the number that is the middle number in the list of numbers (example: 10,20,60 20 is the median number).
Here are some relevant Newtown real estate statistics:
The median sale price in Newtown, CT is down 8.57% from this same time last year. The median list price is down 9.11% from this same time last year.
The number of units sold as of 6/30/08 is down 33.9% from 2007. One-third fewer homes have been sold in 2008 than were sold in 2007. There were 171 homes were sold in the first six months of 2007 and 113 homes were sold during the same period in 2008.
The number of days that a home is active on the market has increased from 139 days to 146 days. This means that it is now taking 7 more days for sellers to get a signed contract for the sale of their home. Doesn't sound like much, but when you're trying to sell your home, it is a big deal. It is important to note that if a home has been listed for sale previously, those days do not rollover into the days on market when the home sells.
The Sale Price to List Price ratio is currently 95%. If the current list price on a home is $100,000 then the seller should expect it to sell for $95,000. When you break out homes into price ranges (ie, $300,000 to $350,000; $350,000 to $400,000) this ratio does fluxuate a little bit.
The figures used in this post come from The Connecticut Real Estate Market Report (7/22/08) and from Prudential Connecticut Realty's Real Estate Reporter (as of 8/31/08). The sales price to list price ratio information is courtesy of the Greater Fairfield County MLS (as of 9/17/08).