Like most Connecticut towns, Hamden real estate prices have been rising slowly in the last few years. Despite a third year of rising prices in 2018, the median home sales price in Hamden, CT remains 25% below the peak of the market just over a decade ago, and foreclosures and short sales rage on.
Hamden, Connecticut Real Estate Market Report 2018:
Hamden residential real estate sales prices have been rising every year since 2015 when the market finally bottomed out after the crash. Hamden peak sales prices were last seen in 2006 when the median price was $250,000. Over the next 10 years prices dropped 33% to a median of just $169,000:
This slow, sustained drop has led to rough real estate conditions for Hamden homeowners. Despite small gains seen since 2015, the median sales price in Hamden is currently $185,000.
This is still over 25% below the peak prices seen 12 years ago.
There are countless Hamden homeowners that either purchased or refinanced their home while values were much higher and many of these homeowners still owe much more than their homes could sell for now. When faced with a relocation or trouble making the payments, selling traditionally is simply not an option.
As a result, the rate of foreclosures and short sales is extremely high in Hamden, CT. The rate of REO (foreclosed, bank owned property) sales and short sales has remained high in Hamden, and actually rose again in 2018:
1 in every 4 home sales in Hamden is that of a distressed property. The majority of these sales are of foreclosed property, and many other homeowners avoid foreclosure with a short sale. In a short sale a home is sold for less than is owed on the mortgage to the property, with the lender approving the loss.
While 2018 certainly looks to be another year of improving values in Hamden, the real estate market still has a way to go to full recovery. It will likely be many years before Hamden homeowners see their home values return. Hamden homeowners who cannot pay off their property debts with a home sale, do have the option to short sell.