Connecticut Real Estate Market Update: Spring 2025

As we move into the spring of 2025, the Connecticut real estate market continues to navigate a landscape shaped by tight inventory, high prices, and fluctuating interest rates. Here's a closer look at the current trends and what buyers and sellers can expect in the coming months. [NOTE: Remember that once you have an accepted offer, it's past time to have selected your attorney. Any full Realtor Contract should have a 5-day attorney review peiriod, and that clock starts as soosn as the contract is signed by both parties.]

Market Trends and Insights

Inventory and Prices: Connecticut's housing market remains characterized by low inventory and high prices. The number of new listings has decreased by over 26% compared to the same period last year. This scarcity of homes has kept prices elevated, with the list-to-selling price ratio holding strong at an impressive 104%.

Interest Rates and Affordability: Mortgage rates have been a significant factor, with the average rate on a 30-year mortgage hovering around 6.8%. These higher rates have impacted affordability, making it challenging for many potential buyers to enter the market. However, those who can navigate these rates are finding opportunities in a market where well-priced homes are still moving quickly.

Home Prices and Sales: As of January 2025, Connecticut home prices have shown a 9.9% year-over-year growth, with the median home price now at $415,300 [2]. The number of homes sold has increased by 4.9% year-over-year, indicating strong buyer interest despite higher prices [2]. Homes are spending an average of 51 days on the market before going under contract [2].

Supply and Demand: The supply of homes remains tight, with only 2 months of inventory available [2]. This limited supply continues to favor sellers, making it a competitive market for buyers. The number of new listings has dropped by 12.7% year-over-year, further constraining the market [2].

Tips for Buyers

1. Get Pre-Approved: Before you start house hunting, get pre-approved for a mortgage. This will give you a clear idea of your budget and make you a more attractive buyer to sellers.
2. Act Quickly: In a competitive market, well-priced homes move fast. Be prepared to make quick decisions and submit offers promptly.
3. Be Flexible: With limited inventory, you may need to be flexible with your must-have list. Consider compromising on some features to find a home that meets most of your needs.
4. Work with a Local Agent: A knowledgeable local real estate agent can provide valuable insights into the market and help you navigate the buying process.
5. Consider Future Resale Value: Think about the long-term potential of the property. Homes in desirable locations or with unique features may offer better resale value.