Connecticut housing market: Everything you need to know
Living in Connecticut can mean getting access to the best of New England at a better price than some other parts of the region. For example, the cost of living in Hartford is around 30 percent lower than it is in Boston and more than 10 percent lower than it is in Burlington, Vermont. Plus, Bridgeport made the top five of Bankrate’s most recent list of best places to live in the entire country.
The Constitution State offers loads of charming small towns, too, but keep in mind that the closer you get to New York City, the pricier they will get. Whether you’re looking to buy or sell a home here, read on for all you need to know about the Connecticut housing market.
Connecticut housing market overview
Connecticut is a small state, but there can be a very big price difference from one area to another. In towns with a quick commute south to Manhattan — such as Greenwich, New Canaan and Darien — expect a significantly higher price point. In fact, the median sale price in Greenwich as of August 2023 was more than $2 million, according to Redfin. Head up to Bristol, though, and you’ll find a much more affordable median of $300,000.
Regardless of price, every local Connecticut market is fairly competitive due to an ongoing supply shortage. The state has only a two-month supply of housing inventory for sale, which is well short of the five or six months a balanced market would have.
Connecticut housing trends and stats
- Home prices in Connecticut are increasing. Data from Redfin shows that the median sale price in the state was $428,000 in August 2023 — a big 10.1 percent from August 2022.
- Inventory has dropped sharply: There were 8,115 homes for sale in August, which is 43.5 percent fewer than the same month last year.
- Homes typically spent 34 days on the market before selling, a two-day decrease from August 2022.
- August’s sale-to-list ratio was 103.9 percent, meaning homes typically sold for around 4 percent above their initial asking price.
- Closing costs typically average 2.1 percent of the purchase price in Connecticut, according to the latest figures from Core Logic’s ClosingCorp. On a median-priced $428,000 home, that comes to around $9,000.
Should you buy or sell in the Connecticut housing market?
In the buyer’s vs. seller’s market debate in Connecticut, the power is very much in the seller’s corner. However, the rise in mortgage rates has made things tougher for both sides of the transaction.
If you’re a home seller
If you’re thinking about selling your Connecticut house, you’ve probably been trying to figure out how much it’s worth. That’s important, but regardless of what price you ask, you’re likely to catch plenty of attention simply because there aren’t many homes hitting the market here. That shortage puts you in the driver’s seat.
As in many places across the country, summer is the prime time to list here. Homes tend to sell for significantly more in June and July than they do in the winter months. No matter when you list, though, there will be closing costs to deal with, including the state’s fairly high conveyance taxes (also known as transfer taxes).
If you’re a homebuyer
If you’re trying to buy a home in Connecticut, be prepared for a bit of a battle. The combination of high mortgage rates and high prices is bad news for your budget. Bankrate’s home-affordability calculator can help you determine how much you can afford to spend on a new home. In addition, it’s important to get preapproved for a mortgage — this crucial step makes budgeting easier by giving you a solid sense of how much a lender will be willing to approve you for.
Think about how much space you really need, too. If you want to start building some equity for less, the condo market has a much more approachable median price tag here: $279,800 versus more than $480,000 for single-family homes, according to Redfin’s data. And if you haven’t owned a home in the last three years, be sure to compare the first-time homebuyer programs in Connecticut to see if you qualify for down payment assistance.
Connecticut housing market predictions
While it’s impossible to predict the future, experts say that the housing market is not about to crash. Looking ahead in the short term, it seems likely that Connecticut’s inventory will remain quite low as current homeowners cling to their locked-in low mortgage rates. The lack of supply will keep prices resilient. The state is working to create more new construction, too: Permits for new builds hit their highest number in 15 years in 2022, according to data from the Connecticut Department of Economic and Community Development.
Find a local real estate agent
Whether you’re looking for a house to buy in Connecticut or trying to figure out the right time to sell your home, you need to find one key ingredient: a good real estate agent. Local agents know their markets inside-out, and with an expert by your side, you’ll likely save time and money on one of the most expensive transactions of your life.
FAQs
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No. Data from Redfin shows that the median sale price in Connecticut actually rose by just over 10 percent from August 2022 to August 2023. Median prices vary greatly from one town to the next, though, and tend to increase as you get closer to New York City.
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Yes. A housing shortage exists across the country, and Connecticut is no exception. Some estimates project that Connecticut needs more than 80,000 new homes and apartments to meet the needs of the state’s population. The lack of available homes for sale is a big part of what keeps the state a seller’s market.
