Connecticut Housing Market Trends for 2023
The Connecticut housing market has seen significant changes in recent years, with 2022 and early 2023 is no exception. According to a recent report by Redfin, home prices in Connecticut have increased by 4.6% compared to the previous year, selling for a median price of $335,600. In this blog post, we will explore the current Connecticut housing market trends for 2023 and what they mean for both buyers and sellers.
The current Connecticut housing market can be classified as a balanced market, meaning that there is a relatively equal number of buyers and sellers. In January 2023, the number of homes sold was down 31.8% year over year, with 2,463 homes sold in January 2023 compared to 3,613 homes sold in January 2022. The median days on the market were 52 days, down 2 year over year. However, the median sale price for all home types was up 4.6%, selling for a median price of $335,600.
Top 5 Metros in Connecticut with the Fastest Growing Sales Price:
- Wethersfield, CT: 31.8%
- Naugatuck, CT: 28.5%
- Stamford, CT: 28.3%
- Danbury, CT: 25.8%
- Bristol, CT: 13.5%
Connecticut Real Estate Appreciation & Forecast
The Connecticut Housing Market has been experiencing significant changes over the past year. The average home value in the state has increased by 8.5% to $349,739. This increase in home value has led to changes in the real estate market, making it important for both buyers and sellers to be aware of the current market trends. In this section, we will discuss the Connecticut Housing Market Trends for 2023 based on the report released by Zillow Research.
Rising Home Values in Connecticut
Connecticut has seen a significant increase in home values over the past year, with the average home value increasing by 8.5%. This is good news for sellers, as they can expect to receive a higher price for their homes. However, buyers may face more competition and higher prices in the current market. As home values continue to rise, it is important for buyers to be strategic in their search and work with a local agent to find the right property at the right price.
Median Sale-to-List Ratio
The median sale-to-list ratio in Connecticut as of January 31, 2023, was 1.000. This means that homes are selling for the exact list price, indicating a balanced market. A balanced market means that neither buyers nor sellers have a significant advantage in negotiations. However, this ratio can change quickly, so buyers and sellers should keep an eye on this metric as they make decisions.
Balanced Market: What it means for Buyers and Sellers
A balanced housing market is a win-win for both buyers and sellers. In a balanced market, neither party has a significant advantage in negotiations. As of January 31, 2023, Connecticut's median sale-to-list ratio was 1.000, indicating that homes were selling for the exact list price. While this is good news for buyers, sellers should not be discouraged. With proper pricing and marketing, sellers can still get a fair price for their homes in a balanced market.
Sales Trends: Over List Price and Under List Price
Another important metric to look at when analyzing the Connecticut housing market is the percentage of sales over and under list price. As of January 31, 2023, 46.4% of sales were over the list price, while 40.3% were under the list price. These numbers indicate that the market is competitive, but not overwhelmingly so. Buyers can still find homes at or below the list price, while sellers can potentially earn a profit above the list price.
MSA Level Forecast: Hartford, Bridgeport, New Haven, Norwich, and Torrington
When analyzing the Connecticut housing market, it's important to look at individual metropolitan statistical areas (MSAs). According to the latest data by Zillow, Hartford, Bridgeport, New Haven, Norwich, and Torrington MSAs are all expected to see varying levels of growth or decline between March 2023 and February 2024.
Hartford is expected to experience a slight decline of -1.3%, while Bridgeport may see a small increase of 0.4%. New Haven is expected to remain relatively stable, with a projected growth of 0.2%. Norwich is forecasted to grow by 0.6%, while Torrington may see a more significant increase of 0.7%.
Overall, the Connecticut housing market in 2023 is showing signs of stability and balance, which is good news for both buyers and sellers. While the market remains competitive, there are still opportunities for buyers to find homes at or below the list price, while sellers can potentially earn a profit above the list price. As always, it's important to stay informed and keep a close eye on market trends and forecasts when making any real estate decisions.
| RegionName | RegionType | StateName | BaseDate | 31-03-2023 | 31-05-2023 | 29-02-2024 |
| Hartford, CT | msa | CT | 28-02-2023 | 0.3 | 0.2 | -1.3 |
| Bridgeport, CT | msa | CT | 28-02-2023 | 0.4 | 0.4 | -0.8 |
| New Haven, CT | msa | CT | 28-02-2023 | 0.4 | 0.2 | -0.2 |
| Norwich, CT | msa | CT | 28-02-2023 | 0.5 | 0.6 | -0.1 |
| Torrington, CT | msa | CT | 28-02-2023 | 0.4 | 0.7 | 0.5 |
According to Neighborhoodscout, the Connecticut real estate APPRECIATION RATE in the previous 12 months (2021 Q3 – 2022 Q3) was among the lowest in the country as the median price went up by 13.78%. APPRECIATION RATE was 2.06% between 2022 Q2 – 2022 Q3. Prices have risen by 33.04% in the last two years and 117.25% since 2000.
- MEDIAN HOME VALUE: $355,572
- AVERAGE RENT: $2,022 per month
- OWNERS = 64%
- RENTERS = 36%
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.
All-Transactions FHFA House Price Index for Connecticut (Quarterly)
- Q4 2022: 624.66
- Q3 2022: 623.24
- Q2 2022: 603.79
- Q1 2022: 559.93
- Q4 2021: 532.41
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
