The New Haven real estate market remained in recovery mode in 2016. Home prices continued to grow relative to last year, although still below the national average, while home appreciation for New Haven real estate was sparse. In fact, home appreciation trends in the last three years have added to the post-recession slump. However, the New Haven real estate market is expected to see investment activity steadily pick up in the coming months, as recovery periods in real estate often equate to investment opportunities.
Along with subpar home prices and appreciation rates, the New Haven real estate market continued to see declines in the local economy and new housing construction. Home affordability, on the other hand, remained strong. During the first six-months of the year, the New Haven housing market was among the most affordable markets in the country, which helped to reward renters, homeowners and investors. The New Haven real estate market is expected to see further improvements moving forward.
New Haven, CT Real Estate Market Statistics:
Home appreciation for New Haven real estate continued to fade during the first-half of 2016. One-year and three-year appreciation rates were 3.0 percent and -1.6 percent, compared to the national average of 4.9 percent and 17.8 percent. Despite lower rates than the rest of the country, home appreciation improved from last year and the trend is expected to continue. For those considering New Haven real estate investments, the following outlines appreciation gains in previous years:
- Homes purchased in the New Haven, CT housing market one year ago have appreciated, on average, by $10,200. The national average was $14,963 over the same period.
- Homes purchased in the New Haven, CT housing market three years ago have appreciated, on average, by $8,316. The national average was $46,878 over the same period.
- Homes purchased in the New Haven, CT housing market five years ago have appreciated, on average, by $14,564. The national average was $82,353 over the same period.
- Homes purchased in the New Haven, CT housing market seven years ago have appreciated, on average, by $14,441. The national average was $77,054 over the same period.
- Homes purchased in the New Haven, CT housing market nine years ago have appreciated, on average, by $34,890. The national average was $31,126 over the same period.
While owners pay down principle, price appreciation in the last 3 years has helped homeowners build equity. The New Haven real estate market continued to experience decent gains in the form of total home equity, although lower than the national average. On average, homes purchased in New Haven in the past year have appreciated by $10,200, whereas the national average achieved gains of $14,963. Homes purchased in year nine have appreciated by the biggest margin — $34,890 compared to $31,126. From an investment perspective, New Haven real estate investing is anticipated to pick up steam in the coming years. Low home prices coupled with rising appreciation rates should continue to fuel the fire in New Haven.
According to RealtyTrac, the New Haven real estate market experienced 229 properties in some stage of foreclosure during the month of December. Bank owned real estate also increased, as the New Haven real estate market experienced a 20 percent increase in REO properties from the previous month, but a 40 percent drop from the same period a year ago. Look for the rise in foreclosures to entice buying activity, especially for New Haven real estate investors.
New Haven, CT Real Estate Market Summary:
- Current Median Home Price: $224,700
- 1-Year Appreciation Rate: 3.0%
- 3-Year Appreciation Rate: -1.6%
- Unemployment Rate: 5.6%
- 1-Year Job Growth Rate: 1.1%
- Population: 130,660
- Median Household Income: $37,508
New Haven, CT Real Estate Market (2016) — Q2 Updates:
The second quarter of 2016 was a time of recovery for the New Haven real estate market. The median home price for New Haven real estate was $224,700 during the second quarter, compared to the national average of $239,167. In addition, one-year and three-year appreciation rates were 3.0 percent and -1.6 percent respectively. Although home prices for the New Haven real estate market continued to grow relative to previous years, price trends from the last three years have added to the post-recession slump.
The local economy also experienced difficulty in the second quarter. The unemployment rate in New Haven was 5.6 percent, compared to the national average of 4.9 percent. This percentage is actually down from a year ago, when unemployment was 5.7 percent. In terms of job-growth, employment in New Haven has held up and is on an upward trend. One-year job growth reached 1.1 percent during the second quarter, as opposed to 1.9 percent achieved by the rest of the country. That said, local employment growth is poor in New Haven and needs to improve.
Home affordability remained encouraging for the New Haven housing market in 2016. Homeowners paid 9.0 percent of their income to mortgage payments during the second quarter, compared to 15.8 percent paid by the national average. The New Haven housing market remains one of the more affordable markets in the country. On the flip side, however, new housing construction continued to decline. The level of construction during the second quarter was 41.6 percent below the long-term average, while single-family housing permits were also down. In comparison, the national average experienced a 10.6 percent increase in single-family housing permits during the second quarter.
The New Haven real estate market is forecasted to experience weaker price growth than the rest of the U.S. in the next 12 months, according to the National Association of Realtors (NAR). New Haven real estate is predicted to grow by 1.6 percent, compared to the national average of 3.6 percent. Despite weaker price predictions, the New Haven real estate market is poised to make a strong rebound in the second-half of 2016.
