Connecticut Real Estate Market Weekly Insights | 2-2-26

Statewide Market TrendsThe Connecticut housing market is currently experiencing a seasonal shift, with pricing and activity cooling from the summer 2025 peak.Pricing: The median sale price for January reached $440,000, a 7.3% increase year-over-year, though down from the June high of $500,000.Sales Volume: Activity saw a 14% drop from the previous year, with only 1,477 single-family homes sold in January.Speed & Competition: Homes are sitting for a median of 26 days, which is faster than last year but slower than the 13–15 days seen in the summer.Inventory: Supply remains tight at 1.79 months, firmly keeping Connecticut in a sellers market.Market Segments & Buyer BehaviorMid-Range vs. Luxury: The most competitive segment is the $200k–$400k range (1.18 months of supply), while the luxury market over $3M offers more leverage for buyers with nearly 8 months of supply.Price Reductions: Approximately 27% of active listings have seen price drops, with an average reduction of nearly 10%.Migration: Most inbound buyers (83%) are moving within the state, but out-of-state interest is led by New York (44%) and Massachusetts (12%).Local Development NewsWest Hartford: The Town Council approved Madsen Acres, a 54-unit affordable condominium project designed to help lower-income residents build equity.Waterbury/Middlebury: A 74-unit residential or hotel project is proposed at the town line, contingent on a DOT realignment of I-84 Exit 17.National Context & Interest RatesRates: Current 30-year fixed mortgages averaged 6.16% as of late January.National Trends: Mortgage applications dropped 8.5% due to rising rates, and US homebuyers are canceling purchase agreements at the highest rate ever recorded for December. If you’re interested in buying, selling, or renting real estate anywhere within the State of Connecticut, please visit our website to see how we can assist you!