The housing market in Connecticut has seen significant changes and trends in recent times. It is essential for homebuyers, sellers, and investors to stay informed about the current market conditions and forecasts to make informed decisions. In this blog post, we will explore the house prices and trends in the Connecticut housing market.
Current Connecticut Housing Market Trends 2023
According to the data from Redfin, in October 2023, Connecticut's housing market witnessed a significant surge, with home prices rising by 10.3% compared to the previous year. The median home price reached $397,300, showcasing the robustness of the real estate sector in the state. However, this increase was accompanied by a 14.5% decrease in the number of homes sold year over year, indicating a shift in market dynamics.
Median Sale Price Trends
The median sale price for all home types in the United States is currently $397,300. This crucial metric serves as an indicator of the housing market's strength and the overall affordability of homes. The continuous upward trajectory suggests a dynamic and competitive market environment.
Top 10 Metros with Growing 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 availability of homes in Connecticut saw a notable decline in October 2023, with 7,993 homes for sale, marking a 36.9% year-over-year decrease. This decrease in housing supply can impact buyer options and influence market dynamics.
Connecticut Housing Demand
October 2023 showcased the competitiveness of the market, with 60.5% of homes in Connecticut selling above the list price. This surge, up 10.8 points from the previous year, signifies a highly competitive landscape with increased bidding wars.
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 witnessed substantial growth, with the average home value reaching $381,629, reflecting a notable 9.2% increase over the past year, according to Zillow. This surge in value suggests a robust real estate market in the state. As of October 31, 2023, homes are going pending in a remarkably short time, averaging around 8 days, indicating a high demand for properties.
Key Metrics (Data through October 31, 2023)
- Average Home Value: $381,629 (Up 9.2% over the past year)
- Days to 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%
This data provides valuable insights into the current state of the Connecticut housing market, showcasing a dynamic landscape with strong demand and competitive pricing.
Connecticut MSAs Housing Market Forecast 2024
Looking ahead to 2024, Zillow's housing market forecast for Connecticut's Metropolitan Statistical Areas (MSAs) provides insights into the expected trends in various regions.
Hartford, CT: The forecast anticipates a moderate growth rate, with the market index projected to increase from 0.6 on October 31, 2023, to 1 by January 31, 2024, and then slightly decrease to 0.7 by October 31, 2024.
Bridgeport, CT: This area is expected to see positive growth, with the market index forecasted to rise from 0.7 on October 31, 2023, to 0.8 by January 31, 2024, and then experience a slight decline to -0.3 by October 31, 2024.
New Haven, CT: The forecast for New Haven indicates a positive trajectory, with the market index projected to increase from 0.6 on October 31, 2023, to 0.9 by January 31, 2024, and further elevate to 1.3 by October 31, 2024.
Norwich, CT: The market in Norwich is expected to remain relatively stable, with a forecasted index of 0.4 on October 31, 2023, rising to 0.7 by January 31, 2024, and maintaining at 0.6 by October 31, 2024.
Torrington, CT: The Torrington area is projected to experience growth, with the market index forecasted to increase from 0.5 on October 31, 2023, to 0.8 by January 31, 2024, and further rise to 1.2 by October 31, 2024.
Note: The forecast suggests varying trends across different regions, providing valuable insights for potential homebuyers, sellers, and investors in the Connecticut housing market.
Will the Housing Market Crash in Connecticut?
Connecticut's housing market has been performing strongly in recent years, but with the current state of the economy and the ongoing pandemic, some are wondering if a crash is on the horizon. While no one can predict the future with certainty, here are some factors to consider when evaluating the likelihood of a housing market crash in Connecticut.
There is undoubtedly a slowdown in the pace of home sales in the Connecticut housing market, but it is more of a return to normalcy. This is neither a crash nor a bubble; housing demand is still present. The slowdown is ideal for buyers who are weary of being outbid in a hot Connecticut real estate market or who are experiencing buyer fatigue.
When there is a boom in the housing market, it is in part generated by an increase in job growth and a fall in the unemployment rate. The relationship between the economy and the housing market cannot be severed. The strength of the economy and the rate of job growth both have an impact on the purchasing power of prospective homeowners. Connecticut ranks among the top five wealthiest states in the country due to the number of residents who travel to well-paying jobs in New York City and the number of significant corporations with headquarters in the state.
Connecticut also has the fourth-highest percentage of college-educated residents (about 35.6%) and is home to Yale University, which U.S. News & World Reports rated third in the nation in 2015. According to Connecticut State Comptroller, the labor market remains strong. Nationally, there are nearly two job openings for every unemployed worker. Connecticut added 1,600 jobs in May and has now recovered 83% of the jobs lost during the pandemic, including 86% of private sector jobs.
Three sectors — construction, professional and business services, and trade, transportation, and utilities — have added jobs above pre-pandemic levels. Connecticut’s per capita income of $82,918 is the third-highest in the country and, today is increasing the state’s minimum wage to $14 per hour. The state has recovered 83% of the jobs lost during Covid-19 and 3 industry sectors have rescued over 100% of the jobs lost.
Home prices are directly affected by demand, which, according to real estate experts, isn't going away anytime soon. However, they are not rising as quickly as they once did, and Connecticut real estate agents predict that prices will level off or rise slightly this year. Some of this is most likely due to rising interest rates.
Sources:
- https://fred.stlouisfed.org/series/TNSTHPI#
- https://www.neighborhoodscout.com/ct/real-estate
- https://www.ctrealtors.com/
- https://www.osc.ct.gov/public/pressrl/2022/Jul012022_Financial_Status.pdf
- https://www.ctinsider.com/connecticutmagazine/article/Whats-next-real-estate-market-connecticut-17023057.php
