New Haven real estate and properties in the rest of the Connecticut have suffered from frighteningly high foreclosure rates over the recent months. Luckily, the trend seems to be ending soon. According to Dan Levy’s Bloomberg article on November 12, 2009, “U.S. foreclosure filings surpassed 300,000 for an eighth straight month as unemployment made it tougher for homeowners to pay their bills.” Additionally, “rising vacancy rates and the resulting loss of rental income will lead to the reduction of the market values of properties and increase foreclosure rates.” However, foreclosure filings in Connecticut dropped over twenty-six percent to 2,306. This positive change brings hope to several homeowners who have watched foreclosure rates increase in nearby New York and Massachusetts as of late.
New Haven homes for sale have maintained a relatively consistent price level despite other areas experiencing price cuts of up to forty-three percent, like in some Floridian neighborhoods. However, New Haven properties have not been immune. In Daniel Taub’s Bloomberg news report on November 12, 2009, it appears as though more than thirty percent of homes in New Haven have experienced price reductions, although more recent numbers show that price reductions are beginning to taper off as the economy recovers and sellers begin to regain some pricing power.
A large part of real estate in New Haven is dedicated to Yale University’s faculty, staff, and students, and is largely seen as immune to most changes because of the properties’ operational necessity to the school. Regardless, Yahoo! Real Estate reported 244 foreclosures in New Haven between October and November 2009, selling at a median price of only $139,000. This price tag is a 0.7 percent drop from the previous month’s median. The median price for other homes for sale didn’t change.