This episode breaks down current conditions in Connecticut’s single-family housing market, highlighting cooling sales activity, persistently low inventory, and continued price pressure across key counties. It also connects local trends to interest rates, affordable housing developments, and national policy moves that could influence housing affordability in 2026.
This episode of Connecticut Real Estate Market Weekly Insights provides a comprehensive snapshot of the state’s housing market, with a focus on single-family homes in New Haven, Hartford, Middlesex, Fairfield, and Litchfield Counties. The discussion begins with statewide sales activity, noting 1,893 single-family home sales, a decline of roughly 2.5 percent year over year. Fairfield County led all counties in total sales volume, followed by Hartford and New Haven, while Middlesex and Litchfield trailed with lower activity. Despite the dip in transactions, median home prices across all five counties remain well above pre-pandemic levels, with Fairfield County continuing to command the highest prices. Buyer demand indicators show homes are still selling relatively quickly, and many properties continue to close over asking price, signaling ongoing competition among buyers.
The episode then narrows in on activity from December 1 through December 31, comparing county-level performance. Fairfield County experienced a notable year-over-year decline in sales during this period, while Hartford and New Haven saw more modest decreases. In contrast, Litchfield and Middlesex recorded increases in sales activity. Median sale prices varied by county, with Fairfield at the top, followed by Middlesex, New Haven, Litchfield, and Hartford. The importance of median pricing is emphasized, explaining how it provides a clearer picture of market conditions than averages. Days on market also differed, with Hartford homes selling the fastest on average and Litchfield homes tending to linger longer.
Broader trend analysis shows that sales volumes peaked during the pandemic years and have since normalized, though they remain higher than pre-pandemic levels in many areas. Long-term price charts continue to trend upward, particularly in Fairfield County, while buyer demand charts show days on market remain low compared with historical norms. City-level data highlights Stamford and Norwalk as leaders in sales activity, followed by cities such as Bristol, Waterbury, and Fairfield, with several mid-sized cities also showing solid performance. When broken down by price range, the greatest share of sales occurred between $300,000 and $499,000, where competition and buyer demand remain strongest.
Inventory remains a central issue, with total months of supply sitting at approximately 1.17 months statewide. This level strongly favors sellers and underscores the ongoing shortage of available homes, which continues to support elevated prices across much of Connecticut.
The episode also covers mortgage rate trends, noting that rates closed the previous week at around 6.06 percent for 30-year fixed loans, with slightly lower averages for 15-year fixed, FHA, and VA loans. Local news coverage includes a proposed affordable housing project in Waterbury that would redevelop a former school site into 10 to 12 income-restricted units with capped rents, supported by tax abatements and housing tax credits. Another local highlight is an $18.7 million renovation in Hartford that restored 84 affordable apartments in a historic neighborhood, blending preservation with modern housing standards.
On the national level, the episode discusses a directive for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities in an effort to lower mortgage rates, while noting uncertainty around the long-term impact and potential implications for housing prices. It also reviews the FHA’s 2025 Annual Report, which shows strong financial health, improved borrower credit profiles, and a housing risk environment very different from the pre-2008 era. The episode closes with Realtor.com’s outlook for 2026, forecasting modest improvements in affordability, slightly lower average mortgage rates, continued but slower price growth, and gradual inventory gains, while emphasizing that affordability challenges are likely to persist.