Three CT Housing Markets That Are Turning Ugly

BRIDGEPORT, CT —Though the U.S. housing market has been strong, and home prices have been rising steadily since 2012, signs of weakness have started appearing lately. And a new study shows that three Connecticut cities—Bridgeport, Waterbury, and Stamford—are poised to be hard hit in the coming slowdown.

GOBankingRates has analyzed 500 cities across the country and found 50 Housing Markets That Are Turning Ugly. The study evaluated these cities to identify which ones have high rates of foreclosures and underwater mortgages (houses that are worth less than what is owed).

It also looked at changes in median home listing prices, the number of days homes are on the market and percentage of for-sale listings with price cuts and compared those figures with national averages to see which housing markets were lagging behind the nation as a whole.

Florida had the most cities on the list followed by Illinois. Number 1 on the list was Peoria, Illinois, followed by Lakewood, New Jersey.

Connecticut has three cities on the list with Bridgeport landing within the top 10.

8. Bridgeport, Connecticut

• Median list price: $189,900
• 2-year price change: 11.1%
• Percentage of underwater mortgages: 26.9%
• Foreclosures: 1 in every 1,453 homes

This port city 60 miles from New York has the second-highest percentage of underwater mortgages on this list, according to GOBankingRates. The foreclosure rate is higher than the national rate. And houses stay on the market an average of 102 days compared with a U.S. average of 66 days.

30. Stamford, Connecticut

• Median list price: $569,950
• 2-year price change: 3.5%
• Percentage of underwater mortgages: 11.1%
• Foreclosures: 1 in every 4,498 homes

The housing market is slowing in this city about 30 miles from New York, according to the study. Home prices haven’t risen over the past year, and houses for sale are staying on the market longer than the U.S. average. Plus, the percentage of mortgages underwater in Stamford is higher than the percentage nationwide.

38. Waterbury, Connecticut

• Median list price: $125,000
• 2-year price change: 11.9%
• Percentage of underwater mortgages: 29.4%
• Foreclosures: 1 in every 1,159 homes

Home prices have risen more in this city 77 miles northeast of New York City over the past two years than across the U.S. However, the housing market in Waterbury could be in trouble. The percentage of underwater mortgages here is higher than in any other city on this list.