Newtown Home Prices Still Sinking

While a report shows home prices are on the rise nationally, the town continues to experience a drop.

A positive sign in the national economy, that home prices rose more than expected in the past year, appears to have skipped the state and town.

Bloomberg reported Tuesday that an index tracking property values in 20 cities showed the largest 12-month gain since August 2010. That, coupled with what continue to be historically low interest rates and an increase in consumer confidence, are setting the stage for a sustained rebound on the real estate front as well as the broader U.S. economy, the Bloomberg article reports.

On the local scene, though, the value of a "mid-tier" single-family home in Newtown fell 21.5 percent in the second quarter—an extreme example that mirrors a downward area trend, analysts say.

The year-over-year drop—from $298,370 to $234,285 for a so-called “mid-tier” home—marks a continuing trend in Newtown, which hasn't seen an increase in home values since the second quarter of 2010, according to the UConn center.

According to Weichert, the highest priced house currently on the market in town is a three-bedroom, three-bathroom house on 33 acres on Platt's Hill Road, listed at $4,995,000. The lowest priced house, with three-bedrooms and one-and-a-half bathroom on .44 acres on Castle Hill Road, is listed at $180,000. In all, according to Weichert, there are 393 properties for sale in town, and an additional 13 in foreclosure.

The median sale price of single-family homes statewide dropped almost 5 percent to $265,000 in June, down from $278,000 in June 2011, according to The Warren Group, a firm that tracks real estate data and is the publisher of The Commercial Record.

"The year-to-date median sale price is $233,000, down 5.5 percent from $246,750 during the same period last year. Quarterly prices dropped 4.6 percent to $248,000, down from $260,000 during the second quarter 2011," the firm reported.

While the state and town's price picture is not that rosey, Connecticut does continue to enjoy an increase in the number of houses sold, The Warren Group reported. The latest data shows that the number of sales has slowed, though.

“While it’s positive that sales remained about the same as last year, it looks like the market lost some momentum in June. Connecticut home sales are not as strong as in other parts of New England,” said The Warren Group CEO Timothy M. Warren Jr., in a press release posted on the company's website. “Hopefully the local consumer confidence combined with low mortgage rates will help the market a great deal.”

“Median prices have continued to decline this year, and the trend is expected to continue until home sales put up stronger numbers,” Warren added.

Paul Alexander September 26, 2012 at 04:54 PM
Connecticut is in a self-imposed death spiral. Years of confiscatory taxes and wealth redistribution were tolerable to individuals and businesses when growth was high. Growth has stagnated, at best, and will remain flat at best for an extended period of time, while taxes remain at confiscatory levels. Government just WONT reduce spending. Tax burdens have now reached a critical mass point for taxpayers and business owners. They are leaving the state. Refer to the 2010 census. As people leave property values fall. Municipalities then raise taxes and mill rates to compensate for the lower property values. The state raises tax rates to compensate for lower growth. More people and businesses leave as a result. Property values continue to fall. Growth continues to stall. Taxes get raised again to maintain or grow government spending levels. More people and businesses leave the state. Wash, rinse, repeat. Look to California to see Connecticut’s future. The ONLY solution is to CUT TAXES. Of course the municipal and state governments have to accept spending cuts in order to balance their budgets as taxes are cut. Cut taxes and spending and the state recovers. The politicians are heroes (and get re-elected). People FLOCK to Connecticut. Maintain the high tax/high spending status quo and the state goes down the tubes. It’s that simple.
Paul Alexander September 26, 2012 at 05:06 PM
Property values in Newtown would jump overnight if the town's leadership made a public commitment to keep their budget flat (a 0.0% increase) for the next five years. Oh, and every single politician would be re-elected in a landslide.
Big Family September 26, 2012 at 06:12 PM
You're absolutely right Paul but that would require heroes...seen any lately?
Truthteller September 27, 2012 at 03:25 PM
Ms. Llodra? Pat?? Oh, that's right, you've taken the vow of silence. How's the productivity in the Community Development Director's office? What with a new assistant plus a pay raise it must be overburdened with new additions ro Newtown's Grand List! That should help pay to clear the overgrowth on the sides of the roads. Well, one can dream, right? Plenty of homes for sale at ever decreasing prices to attract the hordes clamoring to live here. Shhhhh.
Big Family September 27, 2012 at 06:00 PM
Sorry, education funds have NOT been removed (though some should) they have been somewhat controlled. Nobody would remove monies for the education of our kids, nobody! but it has to be recognized that educational WANTS and NEEDS are two very different things. Show the taxpayers/voters the need and the money will be there, show the taxpayers/voters union led across the board raises and added administrators and we're on to the next referendum.
Paul Alexander September 27, 2012 at 06:06 PM
NTP, People buy when they perceive VALUE...not nominal dollars spent. Create value and you will attract buyers. People are leaving the town and the state because there is little VALUE for the tax dollars spent. The AMOUNT of money spent is meaningless. You cannot possibly be, or have ever been, a business owner and say such stoopid things.
Arthur Hill September 27, 2012 at 06:14 PM
Meanwhile, Governor Malloy is saying that taxes will need a hefty increase in 2013 to pay for the continuing budget deficit. This after he enacted, in 2010, the largest tax increase in state history. Go figure.
Paul Alexander September 27, 2012 at 06:31 PM
HA! Malloy,with his liberal playbook, is so predictable! I suspected the Good Guv would pull a stunt like that but haven't read anywhere where he has actually said that. Where have you read that?
Paul Alexander September 27, 2012 at 06:35 PM
How is it that OTHER states and OTHER municipalities provide the same level of services, and for some states and municipalities, even HIGHER level of services, FOR LESS MONEY/LOWER TAXES? Stop focusing on the AMOUNT of money and start focusing on the USE of that money. That is where the solutions lie. Connecticut is one of the HIGHEST TAXED states and you don't get s*@t for it. THAT is why people are leaving. YOU are part of the problem.
Paul Alexander September 27, 2012 at 06:37 PM
If Malloy jams another tax increase down the State's throat then any tax increase at the town level is Dead On Arrival.
Big Family September 27, 2012 at 07:23 PM
Well NTP that post went a long way to solving the "problem". I don't think anyone wants a Target in their neighborhood but the idea of developing the ex 9 area of town is a very good start at addressing increasing the commercial tax base. And as long as they pay their taxes all of the new shopes can be spas or nail salons.
Paul Alexander September 27, 2012 at 07:29 PM
"Stripping funds from education".... The school system is operating with a RECORD HIGH budget. What exactly is your point???
Daniel Patti September 27, 2012 at 07:42 PM
NTP Increasing the edu budget, aka raising taxes, will increase home values? If so we should be scolding our elected officials for taxes being to low.
yoda September 27, 2012 at 11:51 PM
This has nothing to do with Newtown, this is a universal issue, the economy is ran by real estate and the real estate hit its lowest numbers due to 9=11, the stock market, gas prices, failure to pay mortgage’s, all of the above! Real estate all over Fairfield County is suffering. I’m hoping after reelection some changes will occur.
Arthur Hill September 27, 2012 at 11:51 PM
Paul - It was on CBS 880 radio news.
Big Family September 28, 2012 at 12:20 AM
I'm hoping the ELECTION is the change.
Sam Mihailoff September 28, 2012 at 01:01 PM
Obama shall not be calling the moving van anytime soon. Don't get me wrong. I would love to see him head back to the Windy City. Ward Cleaver has stuck his foot not only in his mouth but half-way down his throat with that 47% "crack"...LOSER!!! I shall vote for NEITHER.............
Paul Alexander September 28, 2012 at 04:10 PM
Really?...back to jedi school you must go.
Big Family September 28, 2012 at 05:02 PM
So Sam by not proforming your civic duty and casting a vote you will instead stay above the fray and be...irrelevant. Have the b@lls to play the hand you're dealt or you're just folding.
Paul Alexander September 28, 2012 at 05:20 PM
Not voting is really the only way to truly de-legitimize unethical elected officials and those unethical wanna-be’s who wish to rise to elected office. Now…voting with your feet…that’s a different story.
Paul Alexander September 28, 2012 at 05:22 PM
What if an election was held and nobody voted? What if a tax was levied and nobody paid it? THEN you'd see some meaningful change.
Big Family September 28, 2012 at 06:39 PM
I can't agree with not voting, no matter how bad the candidates are there is always one that is better then the others. Granted the difference may be minuscule, but that difference is a small step in the right direction. I understand your points but President Obama is much more dangerous to America than Mitt Romney.
Po Murray September 30, 2012 at 11:58 AM
I imagine towns that support education will sell their homes faster, have lower inventory of homes for sale retaining the higher home value. I know so many people who want to move out of Newtown and if I were a prospective homebuyer with school-aged children, I would certainly think twice about purchasing a home in a town that makes multimillion dollar cuts to the education budget requests year after year.
JJHL September 30, 2012 at 12:02 PM
I COMPLETELY agree, Big Family!!!
yoda September 30, 2012 at 12:42 PM
Why aren't we thinking about placing water and gas lines into this town???
Big Family September 30, 2012 at 03:08 PM
I guess we are just supposed to forget the past multimillion dollar INCREASES year after year. Time to show the need and be accountable, you know, like grownups.
Paul Alexander September 30, 2012 at 06:59 PM
Po, You mislead people. Purposely??? The Newtown School Sytem is operating with a record high...RECORD HIGH...budget. It's just not as high as YOU want it.
letsplay September 30, 2012 at 08:33 PM
Po, well you have done it again, you went after another community member on Newtown education site! Nice, you just keep making friends!


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