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

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:
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.

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!


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!