Connecticut Real Estate Market Weekly Insights (6-16-25)

In this episode of Connecticut Real Estate Market Weekly
Insights, we start with a detailed analysis of the
multi-family housing market across Central Connecticut, focusing
on Meriden, New Haven, Waterbury, New Britain, and Hartford. The
discussion covers median sale prices—explaining why the median is
a more reliable market indicator than the average—along with
insights into Cumulative Days on Market versus standard DOM, and
why CDOM offers a truer measure of market activity.


We also break down the Sales Price to Original List Price Ratio,
helping listeners understand whether homes are selling at, above,
or below initial list prices, and what that signals about
competitiveness. Price per square foot is discussed as a tool to
evaluate relative property value across different cities.


Meriden and Waterbury show more affordability, while New Haven
and New Britain reflect stronger demand and quicker sales. New
Britain’s four-unit properties especially stand out for being
snapped up quickly, suggesting investor urgency.


Interest rates are down slightly this week, with 30-year fixed
loans averaging 6.89%.


Next, we explore House Bill 5002, Connecticut’s
pending legislation to address the housing crisis. The bill
proposes zoning incentives, transit-focused development, reduced
parking requirements, and expanded rental assistance, though it
faces opposition due to concerns over local control and market
interference. Lawmakers are expected to negotiate amendments
ahead of Governor Lamont’s June 24 decision.


We then turn to regional trends showing that small towns
are outperforming larger cities in 2025 sales growth,
with places like North Canaan and Roxbury seeing double or even
quintupled activity thanks to out-of-state demand and lower price
points.


Housing permit activity is down 10% year-over-year, despite
earlier gains. Connecticut now ranks 40th nationally in permit
momentum, hindered by zoning resistance, rising costs, and
construction delays. Experts say financial incentives won’t be
enough without real zoning reform.


We also cover the redevelopment of New Haven’s Science
Park, where long-vacant Winchester factory buildings are
being demolished to make way for biotech and office spaces—a
major step in reshaping Newhallville’s future.


On the national front, we highlight a 1% annual decline in
U.S. asking rents, driven by a surge in supply,
with Redfin noting sluggish apartment absorption and high vacancy
rates. Zillow forecasts cooling rent inflation, while still
acknowledging elevated CPI shelter numbers due to lease renewal
effects.


Lastly, investor behavior is shifting. Small investors now
dominate the market, and cash purchases are declining.
Realtor.com reports that investor sales hit record highs in 2024,
especially in affordable Midwest and Southern markets.


The Fannie Mae Home Purchase Sentiment Index rose to 73.5 in May,
with more consumers feeling positive about buying and selling
homes, signaling a potential stabilization in buyer and seller
confidence across the country.


To close, listeners are encouraged to reach out if they plan to
buy or sell a home in the coming months, and to tune in next
Monday for the latest market updates.


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!