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When the Connecticut real estate market crashed – Bridgeport sure crashed HARD! Like most Connecticut cities, Bridgeport real estate prices have slowly begun trending up in recent years. Despite small gains, prices still hover almost 40% below the peak prices of 2006, and foreclosures and short sales rage on.
Bridgeport, Connecticut Real Estate Market Report 2018:
Bridgeport residential real estate sales prices have been rising slowly since 2012, when the market finally bottomed out. Bridgeport peak sales prices were last seen in 2006 when the median price was $248,950. Over the next 6 years prices dropped 60%, to a median of just $100,000:
This massive drop led to a hugely depressed real estate market, and despite small gains seen since, the median sales price in Bridgeport is $155,000. This is still almost 40% below the peak prices seen 12 years ago.
There are many Bridgeport homeowners that either purchased or refinanced their home at the home values seen in those days.
Many of these homeowners still owe more than their homes could sell for now, and most are faced with the prospect of having to wait many more years to see their home values return. 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 Bridgeport, CT. The rate of REO (foreclosed, bank owned property) sales rose a tad in 2018 to 26%:
While 1 in 4 Bridgeport sales is of a foreclosed property, 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 most of CT sees short sales at a rate of 2-3%, Bridgeport doubles that at 5% in 2018:
While 2018 certainly looks to be another year of improving values in Bridgeport, the real estate market still has a way to go to full recovery. It will likely be many years before Bridgeport homeowners see their home values return. Bridgeport homeowners who cannot pay off their property debts with a home sale, do have the option to short sell.