The Triniyah Podcast

Connecticut Real Estate Market Weekly Insights (3-3-25)

Episode Summary

This episode of Connecticut Real Estate Market Weekly Insights covers the latest trends in Connecticut’s housing market, including rising home values, slight inventory growth, and ongoing competition among buyers. It also explores local real estate developments, economic updates, and national housing trends, providing a comprehensive market analysis.

Episode Notes

In this episode of Connecticut Real Estate Market Weekly Insights, we break down the latest trends in Connecticut’s real estate market. Home values are on the rise, with single-family properties increasing by an average of 7.8% year-over-year. However, inventory remains tight with just a 2.2-month supply, keeping the market highly competitive. While pending sales are slightly up, closed sales have dipped, possibly due to affordability challenges. We also discuss interest rates, which have decreased slightly from the previous week, and how they might impact homebuyers and sellers in the coming months.

Local Market Highlights:

• Home values increased by 7.8% from February 2024 to February 2025.
• Housing inventory saw a slight 1.5% increase, offering buyers more options.
• Pending home sales are up 0.5%, showing continued buyer activity.
• The median days on the market dropped 28.6%, with homes selling in just 10 days on average.
• 101.5% sale-to-list price ratio indicates that many homes are still selling above the asking price, though bidding wars are slightly cooling.
• Interest rates as of last week:
  • 30-year fixed mortgage: 6.74%
  • 15-year fixed mortgage: 6.22%
  • 30-year FHA loan: 6.12%
  • 30-year VA loan: 6.15%

Local Real Estate News:

• Affordable Housing Challenges in Northwest Connecticut: Many small towns struggle to meet the state’s 10% affordable housing mandate due to high property values and community opposition.
• Middletown’s Real Estate Boom: New luxury apartment complexes and mixed-use developments are reshaping the city’s downtown.
• Hartford’s Office Market Crisis: A 40% office vacancy rate and loan defaults are forcing landlords and city officials to rethink the use of commercial spaces.

National Housing Market Trends:

• Pending home sales fell 4.6% in January, with affordability still a major hurdle.
• Property tax reform is gaining traction in states like Georgia, Florida, and North Dakota to ease homeowners' burdens.
• Build-for-Rent (BFR) housing is growing, especially in the Northeast, as affordability issues push more families into single-family rentals.
• Economic Growth & Mortgage Rates: The U.S. economy saw a strong start to 2025, but inflation concerns may limit interest rate cuts, keeping mortgage rates elevated.

Final Thoughts:
Despite a competitive market, buyers are finding slightly more options, and interest rates have edged downward. If you're considering buying or selling a home in Connecticut, now is the time to strategize based on these evolving market conditions.

Contact Us:
If you’re planning to buy or sell a home in the next 6-12 months or want insights into how these trends affect your real estate goals, call (203) 200-0933 or visit Triniyah.com to get in touch.