July 6, 2010 - Median sales prices of Connecticut’s single family homes continued to rise modestly in May while sales surged 39 percent, fueled by pent-up demand, low interest rates and the continuation of the homebuyer tax credit, the Warren Group has reported.

Year-to-date prices are up 4.8 percent to $239,000 from $228,000, while May’s median price remained flat over May 2009, rising to $240,000 from $239,000.

“Pent-up demand from buyers who were delaying purchases because of their concerns about the economy, low interest rates and the tax credits have helped push up sales,” said Warren Group CEO Timothy M. Warren Jr. “But median price gains have been modest so far this year, and we anticipate very slow growth in home values during the recovery.”

The 39 percent increase in sales was the sharpest increase in sales year-over-year for the month of May in more than two decades, according to the latest report by The Warren Group, which publishes The Commercial Record. “It’s clear that the residential real estate market is still feeling the effects of the homebuyer tax credits because buyers who want to take advantage of the expired credits have until the end of June to close their deals,” said Warren.

Median prices are up year to date in Fairfield, Hartford, Litchfield, Windham and New London counties.  They are flat in Middlesex and New Haven counties and down slightly in Tolland County.