Connecticut Real Estate Market Weekly Insights (7-7-25)

In this episode of Connecticut Real Estate Market Weekly
Insights, we examine how the Connecticut housing market
performed in June 2025, focusing specifically on single-family
homes. The median sale price reached $500,000—up 6.4% from last
year—while the number of homes sold rose nearly 5% year over
year. The average sale price topped $688,000, with homes selling
for an average of 4.5% over asking and spending a median of just
13 days on the market. The most competitive segments were homes
priced between $200,000 and $599,000, but even luxury homes saw
notable activity.


Inventory remains tight, with only 1.42 months of supply overall,
well below the 5–6 months considered a balanced market.
Especially constrained were the $200K–$599K ranges, while
listings above $3 million leaned more toward buyer's market
conditions. Price drops occurred on 30% of active listings, with
the largest reductions seen at the top and bottom of the price
spectrum.


The episode also breaks down buyer migration trends, noting that
most sellers left for Florida or New York, while most
out-of-state buyers came from New York and Massachusetts. Despite
increasing prices, over 20% of buyers still came from outside
Connecticut.


Interest rates ticked up across all loan types, with 30-year
fixed loans closing at 6.75%. The episode dives into recent news,
including accelerating affordable housing developments in
shoreline towns like Clinton, Guilford, Madison, and Old Saybrook
through the 8-30g zoning statute.


We also discuss the major provisions of the “One Big Beautiful
Bill,” which permanently makes mortgage insurance premiums
tax-deductible, expands low-income housing tax credits, preserves
investor-friendly tax deductions, and temporarily increases the
SALT cap to $40,000. However, no new first-time buyer credits or
down payment assistance were included.


Additional stories include a New Haven eviction case dismissed
due to a paperwork error, the latest economic data showing
declines in personal income and spending, and nationwide housing
trends such as increased pending home sales, a slight drop in
mortgage rates, and rising affordability challenges. Buyers now
need nearly $18,000 more in annual income to afford a
median-priced home nationwide, pushing more people toward
renting.


To wrap up, the episode emphasizes that while Connecticut remains
a strong seller’s market, outcomes vary by price tier and town,
making local market knowledge critical for buyers and sellers.


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!