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

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.


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!