connecticut housing market 2024: trends & house prices
/
By Josh Patoka | Published on April 18, 2024
With tight inventory levels and still-high prices, the Connecticut housing market shares many similarities with the national market. Here’s a closer look at Connecticut’s current real estate trends and where the market might go for the rest of 2023.
Current Connecticut Housing Market
In Connecticut, inventory levels remain low and home prices remain quite high.
“In general, the state is showing both new and sold listings down about 26% year to date,” said Candace Adams, president and CEO of Berkshire Hathaway HomeServices, New England Properties. “The list-to-selling price ratio remains strong at an unprecedented 104%.”
In addition, current mortgage rates and inflation continue to create home affordability issues, keeping even more buyers on the sidelines.
Most Popular Connecticut Cities
While Connecticut isn’t one of the top states people are moving to, it’s still a highly sought-after housing market. In fact, two Connecticut metros ranked among the nation’s top 20 housing markets in March 2023, according to Realtor.com. The Hartford-West Hartford-East Hartford metro area was rated the third-hottest housing market, while the New Haven-Milford metro area ranked fifth.
The state is also a popular destination for New Yorkers. In the Bridgeport-Stamford-Norwalk metro area, approximately 50,000 New York residents moved to the region after remote work became more accessible during the 2020 coronavirus pandemic.
Because of their proximity to New York City, the larger towns along Connecticut’s southwestern coastline, such as Stamford and Greenwich, tend to have a greater impact on the state’s housing market. Stamford currently holds the title of Connecticut’s fastest-growing city, with a population growth of 10.5% from 2010 to 2020, versus 1% statewide, according to U.S. Census Bureau data.
Here are the five largest Connecticut cities based on 2021 estimates from the Connecticut Department of Public Health.
Bridgeport. 148,333 citizens
Stamford. 136,309 citizens
New Haven. 135,081 citizens
Hartford. 120,576 citizens
Waterbury. 113,811 citizens
Connecticut Housing Trends and Stats
Connecticut’s housing market looks to be on a slow recovery, but home prices in some areas of the state remain more affordable than the national average.
New Listings
The number of new home listings in Connecticut over the first six months of 2023 is down more than 26% compared to the first half of 2022. There are 21,776 new listings year-to-date in 2023 compared to 29,564 over the same months a year earlier, resulting in 7,788 fewer homes on the market.
This figure indicates fewer sellers are listing their homes, giving buyers fewer options to compare and choose from. Couple that with mortgage rates at multiyear highs and it’s no surprise that homeowners in the state are staying put.
Median Sales Price
Connecticut’s median selling price was $350,000 for the first six months of 2023 versus $335,000 for the same period in 2022, according to Berkshire Hathaway HomeServices. This number remained lower than the national median of $416,100 during the second quarter of 2023.
The lack of inventory and a resilient luxury housing market bolstered the median sales price. For example, the list-to-sales price for the first half of 2023 was 102.4%, slightly lower than the year-over-year reading of 103.1%. Yet, this implies many homes continue to sell above the original asking price.
Buying a home in Connecticut can still be cheaper than many other places across the U.S. However, the figures listed here don’t account for property taxes or homeowners insurance.
Average Days on Market
Many Connecticut homes sold within 37 days during the first half of 2023 versus an average of 39 days during the first half of 2022. On average, homes in the state are selling quicker than they are nationwide. The average listing in the U.S. stays on the market for 54 days, according to data from Realtor.com.
County-Level Connecticut Housing Market Statistics
Each county in Connecticut displayed similar trends in the second quarter of 2023. New listings and properties sold declined year-over-year in every county, while the median sales price increased in every county.
Below is a snapshot of transaction volume and selling price for all eight Connecticut counties for the second quarter of 2023. Below each figure is the year-over-year (YoY) percentage change.
Connecticut Housing Market Predictions
When compared to the national housing market, the future of Connecticut’s housing market looks relatively similar. Specifically, inventory levels will likely remain suppressed in Connecticut due to low housing supply.
“There just aren’t enough homes for sale in our housing market, and that’s creating higher prices,” said Greater Hartford Association of Realtors CEO Holly Callanan. “Until we see more inventory, sales will likely remain low.”
Pending Sales Indicate More Listings
Some housing experts are optimistic that the Connecticut market could strengthen in the near future. One market indicator to watch is pending sales.
“Pending sales are always a leading indicator of how the market will perform in the coming months: fewer pending transactions now means we will likely see fewer closings in the [third] quarter,” said Paul E. Breunich, chairman and CEO of William Pitt Sotheby’s International Realty. “In consulting our own company’s pending closings, we see that on a monthly basis [sales declines] became comparatively smaller and smaller as the [second] quarter progressed.”
While Breunich notes that the housing market in Connecticut still stands “well behind” last year’s housing market, he does anticipate better days ahead.
“Our projection is that during the second half of 2023, our markets are very likely to demonstrate improvement over the same time in 2022, both due to the weak performance of that period last year and due to the positive trend of properties going to contract we are now witnessing in our own company numbers.”
“We believe that [Connecticut’s] geographic proximity to New York City gives us the unique benefit of an unusually high level of buyer demand that continuously flows from the city into our suburban markets.”
Should You Buy or Sell in the Connecticut Housing Market?
The housing market in Connecticut currently favors sellers as inventory levels are limited and the average listing only remains on the market for approximately one month. Median home prices in all eight counties increased year-over-year and are likely to sell above list price.
Because it’s a seller-friendly market in many instances, buying a house in Connecticut right now requires patience. However, for those seeking a New England-suburban setting with a high quality of life, Connecticut can be a great choice.