2023 Connecticut Housing Market Report
With the first quarter of 2023 coming to an end as we enter springtime, we can better see how the Connecticut housing market is going for 2023 so far. Patterns this time of year typically see a rise in inventory, as homeowners prepare their properties for sale for the busier seasons.
At present, the demand for houses in Connecticut is higher than the available inventory. Mortgage rates are still high – reporting at more than 6.5%. In addition to this, inflation is still high. Sellers are appearing hesitant to put their properties on the market at the moment, which goes against the usual trends.
The median sales price increased, but the new and sold property listings are decreasing. Fairfield County and New Haven County are among the top counties who have a higher number of listings in Connecticut. In the Northeast, supply rates are at their lowest. Hartford’s selling prices are soaring, but with very little inventory. Greenwich, one of the more luxury locations, is seeing an increase in selling price too, following the rest of the market trends in the wider USA for luxury locations.
Experts are hoping that mortgage rates in 2023 will begin to stabilize and push the market forward.
Current Market Overview in Connecticut
The current median price of a property in Connecticut is $393,700.
March 2023 saw house prices grow, with a 4.5% increase on prices reported in March 2022. They continue to grow as the year goes on.
The number of properties sold in March 2022 was 3,781. This has decreased to 2,982 in March 2023. The average number of properties sold in Connecticut year over year has decreased by 21.1%.
Properties spent an average of 42 days on market, which is also down year over year.
Source: https://www.redfin.com/state/Connecticut/housing-market
Current Supply and Demand in the Connecticut Market
When there is a fine balance of supply and demand in the real estate market, there will be enough homes to purchase for every prospective buyer. However, the perfect balance is not always the case. With the COVID-19 pandemic, the state of the economy, and a plethora of other factors, a balance is not easy to strike. The supply of houses is often impacted by government policies, local development, labor and materials, while the demand can be impacted by buyer demographics, personal financial situations, and interest rates.
The rule of thumb is: when the buyers outweigh the number of houses for sale, the prices of properties will increase. When there are more homes for sale than prospective buyers, house prices will decrease.
With this in mind, here is the latest information on the Connecticut supply and demand.
Supply
The number of properties available for sale had decreased in March 2023. 9,135 homes were reportedly for sale in Connecticut, which was a decrease of 21.4% compared with last year. Newly listed homes had also decreased year on year, by 31.3%, with only 3,614 on the market.
Source: https://www.redfin.com/state/Connecticut/housing-market
Demand
Over half (51.9%) of the listed properties in Connecticut in March 2023 sold below listing price.
Top Growing Sales Prices in Connecticut:
Norwich, CT
West Hartford, CT
Torrington, CT
Bridgeport, CT
Naugatuck, CT
Most Competitive Locations in Connecticut
Simsbury Center, CT
Coventry Lake, CT
Jewett City, CT
Old Hill, CT
Danielson, CT
Predictions for the Future of the Connecticut Housing Market – 2023 and Beyond
It is predicted that the state of the Connecticut housing market in 2023 will become more active. Consumer behavior is likely to shift, as more millennials are entering the market in recent years, with a boom expected in 2023. In addition to this, inflation and mortgage rates are expected to stabilize to a more anticipated level, which suggests a more active and balanced housing market in Connecticut may be on the horizon. With this shift, there will be more confidence in the housing market, and may even begin to push existing homeowners back into the market, to purchase second and third homes. Other predictions for 2023 suggest that we will see the value of homes increase. If all goes well, this will help balance the supply and demand, as the market will see more available inventory.
Connecticut Housing Market View – 2022 Onwards
The Connecticut housing market saw great recovery and improvements as we left behind 2022 and entered 2023, with a number of pending house listings being taken off the market as the number of buyers increases during the month of January 2023. Moving from 2022 to 2023, we started to see mortgage rates tick downwards, buyer demand appears to be coming back from its lowest point, as indicated by mortgage applications, property inquiries and Google searches rising.
2022 was a rocky year for the housing market, all across the United States due to rising interest rates, and a 40-year high inflation. However, all was not lost for the Connecticut housing market. Fortunately, for those looking to buy or sell, notable locations such as the New Haven and Fairfield Counties experienced a strong buyer demand across the market. Houses were moving quickly in regions such as the Northeast, where properties are priced accordingly.
Jan 2022 – Jan 2023
The average sale price for homes in Connecticut was at an all time high in 2022, being an average of $585,000, however, the number of sold properties have significantly decreased in 2022 to 35,177, back to levels seen in 2016. 2021 saw 44,027 properties sold in comparison. 2022 saw an average DOM (day on market) of 36, which has decreased since 2021, which was 44.
New listings: Down by 17.89%. 51,666 in 2022 compared to 62,921 in 2021
Sold properties: Down by 19.4%. 45,160 in 2022 compared to 56,031 in 2021
Median listing price: Up by 6.27%. $339,000 in 2022 compared to $319,000 in 2021
Median selling price: Up by 6.84%. $345,000 in 2022 compared to $322,900 in 2021
Median days on market: Down by 29.17%. 17 in 2022, compared to 24 in 2021
December 2022
An overview of the market at the end of 2022.
House prices in December 2022 were reporting a year-over-year increase by 0.5%
Houses sold for a median price of $337,200
Houses for sale decreased by 24.5% (9,087 homes for sale in December 2022, 1,475 were newly listed homes which were also down, by 28.9%)
Single family homes
Number of sales was down by 20.10% (35,177 in 2022 compared to 44,027 in 2021)
New listings were down by 17.92% (40,944 in 2022 compared to 49,885 in 2021)
Average number of days on the market was down by 18.18% (36 in 2022 compared to 44 in 2021)
Condo-Townhouses
Number of sales was down by 16.84% (9982 in 2022 compared to 12,004 in 2021)
New listings were down by 17.76% (10.721 in 2022 compared to 13,036 in 2021)
Average number of days on the market were down by 23.91% (35 in 2022 compared to 46 in 2021)
Supply and Demand Stats from 2022
Sold properties decreased by 33.2%, 3350 sold in December 2022 (compared to 5,016 sold December 2021) with a median number of days on the market being 45 (down by 6 from the previous year)
46.2% of properties in December 2022 sold below the price listed, which is a 0.17 point decrease year-over-year. 13.2% of properties dropped their prices, which is an increase of 10% from December 2021. The sale-to-list price was 100.1%, which was down 0.13 points year-over-year. The decrease in the number of properties sold above the listing prices in Connecticut in December 2021, could indicate that the market is becoming less competitive.
Despite the statistics at the end of December 2022, January and February of 2023 saw an uptick in the demand for houses. However, the inventory fell across the US as there are just not enough sellers.
The statistics across the US show that if houses are priced properly and according to their value, they will sell quickly. There is not a dramatic spike in homes for sale, and buyers are not panicked. This is a sign of market strength.
