Connecticut has seen several developments and shifts in the housing industry in recent years. Buyers or sellers, as well as investors, need to be aware of present market conditions and forecasts so that they can make informed choices. This blog will examine the trends and prices of houses in the Connecticut housing market.
Current Connecticut Housing Market Trends 2023
According to the information from Redfin, in October 2023, Connecticut’s real estate market saw a considerable increase, and home prices grew by 10.3 percent compared to the previous year. The median price for a home was $397,300, demonstrating the strength of Connecticut’s property industry. However, this growth was offset by the 14.5 percent reduction in the number of homes sold each year, which suggests an alteration in the market dynamics.
Median Sale Price Trends
The median selling price for all types of homes across the United States is currently $397,300. This metric is an indicator of the housing market’s strength as well as the general affordability of houses. The constant upward trend suggests an active and competitive market environment.
the Top 10 Cities in Connecticut with increasing sales prices in Connecticut
- Westport, CT: 59.0%
- Naugatuck, CT: 46.9%
- Trumbull, CT: 29.1%
- Newington, CT: 25.5%
- Greenwich, CT: 24.5%
- West Hartford, CT: 24.1%
- Bristol, CT: 24.0%
- Waterbury, CT: 19.9%
- New Haven, CT: 18.5%
- Bridgeport, CT: 16.7%
Connecticut Housing Supply
The number of homes available in Connecticut has seen a noticeable decrease in October 2023, which included 7,993 homes available for sale, representing a 36.9 percent increase over the previous year. The reduction in housing supply could impact buyers’ options and affect the market’s trends.
Connecticut Housing Demand
October 2023 highlighted the market’s competitiveness and showed 60.5 percent of houses in Connecticut selling for more than the cost of the list. This increase, which is by 10.8 points from the previous year, suggests the market is highly competitive, with a rise in bidding battles.
Top 10 Most Competitive Cities in Connecticut
- Danielson, CT
- Hazardville, CT
- Wethersfield, CT
- Southwood Acres, CT
- Putnam, CT
- Coventry Lake, CT
- Jewett City, CT
- Moosup, CT
- Noroton, CT
- Sherwood Manor, CT
Connecticut Housing Market Forecast 2023-2024
The Connecticut housing market has grown significantly, with the median home value rising to $381,629. That’s a remarkable 9.2 percent increase over the last year, as per Zillow. This increase in value indicates an active market for real estate in Connecticut. On October 31, 2023, properties are to auction in a concise amount of time, with an average of eight days, indicating a significant demand for homes.
The Key Metrics (Data up to October 31, 2023)
- The average home value is 381 629 (Up 9.2 percent in the last year)
- Days to be Pending: Approximately 8 days
- For Sale Inventory: 6651
- New Listings: 3153
- Median Sale to List Ratio (as of September 30, 2023): 1.031
- Median Sale Price (as of September 30, 2023): $370,000
- Median List Price (as of October 31, 2023): $403,300
- Percent of Sales Over List Price (as of September 30, 2023): 66.0%
- Percent of Sales Under List Price (as of September 30, 2023): 24.4%
These data provide valuable insight into the situation in the Connecticut home market, showing an evolving landscape characterized by solid demand and affordable prices.
Connecticut MSAs Housing Market Forecast 2024
Looking forward to 2024, Zillow’s market forecast for housing in the Connecticut Metropolitan Statistical Areas (MSAs) offers insight into the anticipated changes in the various regions.
Hartford, CT: The forecast predicts an average growth rate, including the market index forecast to rise to 0.6 by October 31, 2023, up to 1.01 by January 31, 2024, after which it will drop to 0.7 on October 31, 2024.
Bridgeport, CT: This region is expected to grow positively, with the market index expected to increase by 0.7 by October 31, 2023, and then increase to 0.8 by January 31, 2024. Then, it will experience an easing decline to -0.3 on October 31, 2024.
New Haven, CT: The forecast for New Haven indicates a positive direction. The market index is expected to rise by 0.6 to 0.6 on October 31, 2023, then to 0.9 on January 31, 2024, and increase to 1.3 on October 31, 2024.
Norwich, CT: The market in Norwich is predicted to remain relatively stable, with an expected indicator at 0.4 by October 31, 2023, increasing up to 0.7 before January 31, 2024, and remaining at 0.6 on October 31, 2024.
Torrington, CT: The Torrington region is expected to grow as the market index is expected to rise by 0.5 on October 31, 2023, then to 0.8 before January 31, 2024, and then increase to 1.2 on October 31, 2024.
Notice: The forecast suggests diverse trends across various regions, offering valuable information for prospective buyers, sellers, or investors looking to invest in the Connecticut market for housing.
Will the Real Estate Market Crash in Connecticut?
The Connecticut housing market has seen a strong performance in recent years; however, given the current state of the economy and the ongoing pandemic outbreak, people think a market crash could be coming up. While nobody can anticipate the future with absolute certainty, there are a few factors to consider when evaluating the probability of a market crash in Connecticut.
There’s no doubt that there’s an increase in the rate of homes sold in the Connecticut market for housing, but it’s more of a return to normal. It is not a bubble or crash as the housing market is in place. This slowdown is perfect for buyers tired of being beaten in a competitive Connecticut housing market or suffering from buyers’ fatigue.
If there is a surge in the housing market,s due to an increase in the number of jobs and a drop in the unemployment rate. The connection between housing and economics can’t be separated. The quality of the economy and the pace of employment growth both impact prospective homeowners’ buying power. Connecticut is one of the top five most prosperous states due to the many residents who commute to lucrative jobs within New York City and the large number of corporations with headquarters in Connecticut.
Connecticut also has the fourth-highest percentage of residents with a college education (about 35.6 percent). It is the home of Yale University, which U.S. News & World Reports rated as third-highest in the nation in 2015. According to the Connecticut State Comptroller’s office, the job market is still healthy. In the country, there are almost two job openings per jobless worker. Connecticut created 1,600 positions in May. It has recovered up to 83 percent of the jobs lost in the outbreak and includes 86 percent of jobs in the private sector.
Three industries that include business and professional services, transportation, trade, and utilities have created jobs at levels that were previously unimaginable. Connecticut’s per-capita income of $82,918 is the third highest in the nation. It is currently increasing the minimum wage in Connecticut to $14 an hour. Connecticut has reclaimed 83 percent of the jobs that were that were lost in Covid-19. Three industries have saved more than 100 percent of the jobs gone.
Prices for homes are directly influenced by the demand for homes, which, according to experts in real estate, isn’t likely to disappear anytime shortly. However, they’re not increasing as rapidly as they did in the past. In addition, Connecticut real estate agents predict that prices will stabilize or increase slightly in the coming year. A large part of this is likely due to the increasing interest rates.