The current median home price in the Hartford housing market rests at $233,800. Despite prices being down from this time last year, rates in this region have surpassed that of the national average ($216,567). In fact, even though the current median home price decreased 2 percent over the course of a year, the trend is improving and still looking stronger than the U.S. market as a whole. That is in spite of a 4.7 percent increase on a national level.
The fluctuation of prices in the last three years has made it more difficult for homeowners in the Hartford housing market to regain long lost equity. The following highlights how much equity has been gained relative to the year of purchase:
- Homes purchased in the Hartford housing market one year ago have depreciated by an average of $1,146, whereas the national average increased $12,783 over the same period.
- Homes purchased in the Hartford housing market three years ago have appreciated by an average of $12,009, whereas the national average was $55,406 over the same period.
- Homes purchased in the Hartford housing market five years ago have appreciated by an average of $13,659, whereas the national average was $49,675 over the same period.
- Homes purchased in the Hartford housing market seven years ago have depreciated by an average of $12,490, whereas the national average increased $9,474 over the same period.
- Homes purchased in the Hartford housing market nine years ago have appreciated by an average of $9,342, whereas the national average increased $3,419 over the same period.
Unemployment in the Hartford housing market is actually better than the national average, though not by much. In fact, Hartford’s unemployment rate is exactly the same as the national average: 5.9 percent. However, over the past year, Hartford’s unemployment rate has improved more than the rest of the country. As it stands, Hartford appears to be in a better position than the rest of the country for the foreseeable future. For the time being, the technology sector will serve as Connecticut’s strongest job market. In Connecticut, and Hartford in particular, defense and financial services jobs will remain steady because of the promising prospects of the technology sector.
Half of Connecticut’s major industries reported job growth by the end of 2014. Of those industries; professional, scientific and technical services were the most influential. Other sectors demonstrating gains included: trade, transportation and utilities; financial activities; leisure and hospitality; and other services. The growth in all of these sectors suggests that the Connecticut housing market is in good hands.
Single-family housing permits have dropped 10.7 percent in the last year. Conversely, new housing construction increased by 2.3 percent in the rest of the country. However, construction rates continue to decline in Hartford. Reduced construction will limit new supply to the market, allowing demand to catch up with inventory more quickly.
Hartford’s housing market remains more affordable than most markets across the United States. Compared to cities like Dallas or Los Angeles, Hartford is very attractive to investors. Whereas homeowners in the city of Hartford typically allocate 9.4 percent of their income to mortgage payments, the national average is approximately 16.3 percent.
According to Zillow, “the percent of delinquent mortgages in Hartford is 9.6 percent, which is higher than the national value of 6.4 percent. The percent of Hartford homeowners underwater on their mortgage is 59.7 percent, which is higher than Hartford Metro at 18.1 percent. Foreclosures will be a factor impacting home values in the next several years.” More than 6 homes out of every 10,000 are already in the foreclosure process, or at risk of entering it.
For the first time in approximately 2-years, Connecticut saw a drop in home foreclosure auctions. The drop should alleviate some of the pressure facing the state’s recovery. Over that 2-year period, auctions fell 19 percent. The drop suggests that local municipalities and servicers have finally managed to catch up on the backlog of foreclosure that were sitting on their books. Perhaps even more importantly, those numbers should continue to drop as the state continues to rebound from the recession.
As of November 2014, the entire state had a total of 1,244 residential properties that had already entered into the foreclosure process. That number is down from the 1,931 foreclosures Connecticut had the year before.
According to Trulia, “popular neighborhoods in Hartford include West End and South West, with average listing prices of $627,207 and $146,524.”
Hartford Housing Market Summary:
- Current Median Home Price: $233,800
- 1-Year Appreciation Rate: -2.0%
- Unemployment Rate: 5.9%
- 1-Year Job Growth Rate: 1.3%
- Population: 125,017
- Percent of Underwater Homes: 59.7%
- Median Income: $66,357