Connecticut

A massive epidemic of foreclosures has hit Connecticut, and it’s damaging the economy throughout most of the state, which may already be in a full fledged recession. The load of foreclosures is so large that the Connecticut Supreme Court formed a committee to study the problem.

Adjustable rate conventional and subprime mortgages going bad are making a massive impact on the state’s economy, and the foreclosure crisis is only in its beginning stages as more than 3-million more loans reset in the next two years nationally.

Employment levels are solid in Connecticut, increasing to 1.7 million in 2007 to help the real estate market’s woes. However, more expected lay-offs on Wall Street could make a bad situation only worse in 2008 for the state.

Home sales have plunged as a result just about everywhere in Connecticut, and are sure to slow further. In the state’s largest city of Bridgeport foreclosures are listed for sale on almost every block as more and more home owners walk from their properties. Foreclosures are certain to rise in 2008, further decelerating the Bridgeport real estate market.

City	Forecast
Bridgeport	− 9.4%
Greenwich	− 6.3%
Stamford	− 6.0%
New Haven	− 7.5%
Hartford	− 9.7%

Bridgeport is forecast to have another slow year of housing sales on the way to 9.4% in deflation for the year.

Connecticut’s strong aerospace and insurance industries should, however, help the state’s overall economy. In New Haven the housing market is also hurting with slower sales and declining prices. New Haven, which is home to Yale University saw record home prices in the real estate boom only fall in the housing bust.

Many students who bought property during the height of the boom now want to just sell their homes, adding to an abundance of inventory on the market. New Haven is forecast to deflate 7.5% in 2008.

Located just a half hours drive outside of New York City in light traffic, Greenwich saw home prices top $2-million in the boom. Greenwich, which is one of the finest communities in the east should not see as severe a slow down as other areas of the state. Although housing sales have slowed, the impact of the credit crisis should not be as severe. Home prices are forecast to deflate an average of 6.3% for the year.

Stamford is one of the nation’s most dynamic communities, where many of the world’s top companies make their headquarters. The over abundance of inventory of homes on the market, however, is pressuring price levels in Stamford, which is forecast to decline a more modest 6.0% for the year.

Hartford has some of the wealthiest suburbs in the nation while its city is one the poorest. But Hartford has created renewed interest, and developers are investing heavily in both commercial and residential projects in hopes of creating more activity downtown. There are more than 1 billion dollars worth of publicly and privately funded projects throughout Hartford's seventeen neighborhoods.

In state capital of Hartford the foreclosure epidemic is worsening. Hartford is pained by a growing epidemic of foreclosures due to subprime loans and other conventional adjustable rate mortgages, which is making a major impact on its real estate market.

Home sales are forecast to decline through the year in Hartford on the way to 9.7% depreciation.