The Triniyah Podcast

Connecticut Real Estate Market Weekly Insights (1-13-25)

Episode Summary

In this episode of "Connecticut Real Estate Market Weekly Insights," we explore key market trends, including home value changes, interest rates, and local news updates, such as legislative efforts to address Connecticut's housing crisis. We also discuss national real estate developments and their implications for buyers and sellers.

Episode Notes

Welcome back to another edition of our weekly podcast, where we unpack the latest developments in Connecticut's real estate market. Here’s what we covered this week:

State Market Highlights:

• Home Values: Single-family home values in Connecticut increased by 8.6% from December 2023 to December 2024.
• Inventory: Homes for sale rose by 1.5%, providing more opportunities for buyers.
• Pending and Closed Sales: Both pending (-0.8%) and closed sales (-1.8%) saw slight declines, signaling a cooling market.
• Days on Market: Homes sold faster, with the median time dropping by 28.6% to just 10 days.
• Months of Supply: With 2.2 months of supply, the market remains tight, favoring sellers.
• List-to-Sale Price Ratio: Homes sold at an average of 102.8% of the list price, a minor decrease from last year.
• Shows-to-Contract: At 17.4 showings per contract, sellers can gauge interest in their properties.

We broke down what these statistics mean for buyers, sellers, and real estate professionals navigating this dynamic market.

Interest Rates:

• 30-Year Fixed Mortgages: Averaging 7.26%.
• 15-Year Fixed Mortgages: Averaging 6.59%.
• FHA & VA Loans: Both hovering around 6.57%–6.59%. These rates have increased from the previous week, impacting affordability and borrowing power.

Local News Spotlight:

1. Housing Crisis Update:
   • Connecticut faces a deficit of over 98,000 affordable rental units, exacerbating homelessness and high housing costs. Legislative efforts aim to expand housing availability and strengthen tenant protections.
2. Hartford Redevelopment:
   • Plans are underway to convert the former LAZ Parking headquarters into a $26.7M boutique hotel, signaling renewed investment in Hartford's downtown.

National Trends:

• Home Prices: U.S. home prices rose by 5.5% year-over-year in November 2024, but growth is slowing.
• Mortgage Rates: Rates remain high, dampening market activity despite a recent Fed rate cut.
• Young Buyers: First-time buyer participation has declined, with the median age of buyers now 38, driven by affordability challenges and student debt burdens.

Economic Insights:

• The December jobs report highlighted a strong labor market with 256,000 new jobs and unemployment at 4.1%, which could influence mortgage rates and housing demand in 2025.

Closing Remarks:

Thank you for tuning in to this week’s episode! Don’t forget to subscribe and join us next Monday for more insights into the Connecticut real estate market. Until then, have a great day!