The state's housing industry took a hit in February as the number of single-family homes and condominiums sold plunged last month and median sales prices remained flat, according to the trade group Connecticut Realtors.
The number of single-family homes sold last month in the state was down 4.2 percent compared to February 2016. There were 1,823 single-family homes sold in February.
The median sale price for those single-family homes sold in Connecticut last month fell 2.2 percent to $225,000.
Condominium sales in Connecticut took an even sharper drop, down 11.3 percent from the 520 units that were sold in February 2016, with 461 units sold last month. The median sale price that those units sold last month was $145,000, unchanged from February 2016.
The February housing numbers are a reflection of both statewide and national economic issues, said Donald Klepper-Smith, chief economist and director of research for New Haven-based DataCore Partners.
Last week's move by the Federal Reserve to raise interest rates by 0.25 percent means "an end to cheap money" for homebuyers, Klepper-Smith said.
"Mortgages are becoming a little more expensive," he said. "And with additional rate increase by the Fed expected later this year, I'm expecting this year's housing market in Connecticut to be softer than it was last year."
Further complicating matters for Connecticut's housing market is the state's inability to achieve sustained job growth, Klepper-Smith said.
"The health of our labor market is quite sluggish," he said.
