Date: Fri 15-Sep-1995

Publication: Bee

Author: AMYD

Quick Words:

real-estate-prices-housing

Full Text:

After A Slow Period, Local Housing Prices Are Starting To Rise

B Y A MY D'O RIO

In all ranges, Newtown housing prices have increased sharply since a year ago,

according to a University of Connecticut real estate report.

But, local real estate agents said the increase does not necessarily mean

houses are worth more.

The report, providing data on 31 towns, shows most of Connecticut's house

prices are decreasing, but those in Fairfield County are going up.

Average Newtown house prices in 1994 were stronger than average house prices

in 1993, and average house prices in the first two quarters of 1995 were

stronger than the first two quarters of 1994.

Increases in new construction prices are inflating the overall averages, and

the resale market is not as good as the report indicates, according to local

real estate agents.

The market for reselling homes is hard to evaluate, said Bob Tendler of Bob

Tendler Real Estate. He said it seems they are increasing, but only slightly.

Other agents said the resale prices are holding steady, and Kathi Weller, a

owner of Flagpole Realty, said some of the resale home values are declining.

As a whole, real estate agents said Newtown has a busy housing market, selling

more homes than other towns.

"The market is real strong. It is one of the busiest towns in the state," Mr

Tendler said.

Agents said Newtown is a commuter haven because, within an hour, they can get

to Hartford, Stamford, White Plains or New Haven. It also has a diverse

housing market, and offers some of the best values in the county, said Ms

Weller.

House prices are increasing in Fairfield County because it is close to New

York, where economic recovery is stronger, said John Clapp, a professor who

generated the UConn report. While Newtown does not have many commuters to New

York City, it is still affected by the New York economy.

But, all agreed the most significant factor in Newtown's busy market is what

one agent described as an inexhaustible supply of new construction.

John Klopfenstein, owner of Curtiss and Crandon Realtors, said no other town

in the area can compete. Because of the strong demand, new construction prices

are increasing quickly.

For example, he said a new home built in 1994 sells for $250,000. To build the

same house in 1995, the buyer could easily spend $10,000 more, Mr Klopfenstein

said.

New construction should not affect the low-end housing market, however, and

homes under $200,000 have also seen sharp increases.

At the end of the second quarter this year, the average low-range house price

was $180,000. It rose $15,700, or 9.5 percent, from the second quarter of

1993, according to the report.

Ms Weller said Newtown has a diverse housing market, which includes plenty of

starter homes. This starter market is doing well because other area suburban

towns do not have as much to offer for the same price, she said.

Those homes competing in price with the new construction are not doing as

well, she said. When people chose between building a new home or buying one

that is 10 years old, they chose the new one, she said. She also said the

resale market is currently the most sluggish around the $300,000 range.

Mr Klopfenstein said his resale data shows homes have been increasing by one

percent or two percent since it stopped declining in 1993. Mr Tendler also

said he thinks homes are either increasing slightly or holding steady.