The Connecticut real estate market remains strong, with home prices rising, inventory shrinking, and buyer competition intensifying. Whether you’re looking to buy or sell, understanding these trends can help you make informed decisions.
Key Market Trends (January 2025 Data, Courtesy of Redfin & CT Insider)
Home prices are up 9.9% year-over-year, with the median sale price reaching $415,300.
Homes sold increased by 4.9%, showing steady buyer demand.
Housing inventory is down 13.8%, making it a tighter market for buyers.
The median days on market rose slightly to 51 days, indicating that homes are still moving but at a slightly slower pace.
West Hartford and Stamford are among the most competitive markets, with many homes selling above asking price.
Where Are Prices Rising the Fastest?
Several metro areas in Connecticut have seen double-digit home price increases, led by Stamford (+40.2%), New Britain (+25.7%), and Trumbull (+24.5%). Other high-growth areas include Norwalk (+21.3%) and Greenwich (+20.0%).
What This Means: Sellers in these areas are benefiting from strong demand, while buyers may face higher competition and fewer choices.
Housing Supply: Are There Enough Homes for Sale?
The number of homes for sale dropped 13.8%, with only 6,855 active listings statewide. Newly listed homes are also down 12.7%, creating even more competition.
Months of supply: 2 months (indicating a strong seller’s market).
Many homeowners aren't selling because they want to keep their low mortgage rates from previous years.
What This Means: Buyers need to act fast when they find a home they like.
Is the Market Still Competitive?
Yes, but slightly less than last year.
46.5% of homes sold above list price, down 4.1 points year-over-year.
More price drops: 16.6% of homes had reductions, compared to 13% last year.
The sale-to-list price ratio is 100.6%, meaning homes are still selling very close to asking price.
What This Means: Some buyers may have room to negotiate, but homes in hot markets like Stamford and West Hartford are still seeing bidding wars.
Actionable Steps for Buyers & Sellers
For Home Buyers:
Be prepared to act quickly – Homes in popular markets sell fast. Have financing pre-approved.
Look for price reductions – Some homes are seeing price cuts, giving buyers room to negotiate.
Expand your search area – Less competitive areas like Milford (+10.7%) and Torrington (+10.4%) could provide better deals.
Monitor mortgage rates – If rates drop, more buyers will enter the market, increasing competition.
For Home Sellers:
Price competitively – Homes priced correctly sell faster and attract multiple offers.
Capitalize on high demand – If you're in a high-growth metro like Stamford or New Britain, now may be an ideal time to list your home.
Make your home stand out – Homes that show well tend to sell quicker and at a higher price.
The 2025 Outlook
The Connecticut housing market remains strong, but slightly less competitive than in previous years. Low inventory and high demand will likely keep prices elevated throughout 2025. Sellers still hold an advantage, but buyers may see better opportunities as price reductions become more common.
Thinking about buying or selling? Click here connect and discuss the best strategy for you in this evolving market.
Sources:
CT Insider – Stamford & West Hartford Market Trends
CT Insider – Housing Supply & Seller’s Market
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