Connecticut Home Sales Surge Amid Shifting Market Dynamics

UPDATE: Connecticut’s real estate market is experiencing significant shifts, impacting both buyers and sellers as of September 30, 2025. Home sales are on the rise, but the landscape is changing as inventory remains critically low, creating urgency for prospective homeowners and sellers alike.

Steven A. Madej, a retired military veteran, recently emerged victorious in a bidding war for a home in Rocky Hill. After making six offers on various properties, he and his wife are now preparing to sell their New Britain home where they have lived for 26 years. “I’m looking for a quick sale,” Madej emphasized, and he may well get it given the current market conditions.

Connecticut’s market continues to favor sellers five years after a pandemic-fueled buying frenzy. However, the inventory of single-family homes has not yet rebounded significantly, and soaring prices coupled with higher interest rates are now tempering buyer enthusiasm. The median sale price of single-family homes in Hartford County has surged nearly 6% year-over-year, reaching $415,000.

Real estate expert Marla J. Byrnes of Coldwell Banker reports a diminishing pool of buyers, stating that offers now often include contingencies for mortgage approvals, a stark contrast to earlier in the year when buyers faced fierce competition. “Homes that are well-presented and priced strategically are still in high demand,” Byrnes noted, though the number of multiple offers has dwindled to 2 or 3, rather than the higher volumes seen previously.

The fall homebuying season typically slows, but experts predict a gradual moderation towards a more balanced market. “The shift isn’t going to be dramatic,” said John M. Zubretsky Jr., a broker with Century 21 AllPoints Realty. “It’s slow and heading towards a more normal market, which we may not see for another year or 18 months.” This shift would create a more level playing field for buyers and sellers, with annual price increases expected to stabilize around 3%.

A recent report from SmartMLS highlights the ongoing challenges in Connecticut’s housing market. Despite rising prices, the inventory of homes remains low, with Hartford County experiencing a backlog of little more than a month. Buyers are facing increased competition, but the market remains stable due to a low supply of homes.

With mortgage rates averaging 6.17% last week—marking the fourth consecutive weekly decline—there is cautious optimism among buyers and sellers. The rates, while higher than the record lows of 3% in 2021, are still considered low by historical standards.

Experts like Jeffrey P. Cohen, a finance professor at the University of Connecticut, underscore that the lack of a housing glut is preventing a market bubble. “The low supply of houses combined with lower mortgage rates has helped keep the Connecticut market stable,” Cohen explained.

As the Madejs prepare to list their Cape-style home at $374,500, they are optimistic about the market response. Zubretsky expects their property to garner significant attention, with eight showings scheduled just days after listing. “Properties in good condition and priced right are going to get this kind of attention,” he said.

However, potential sellers are cautious. Many fear they won’t find suitable replacements in a tight market, prompting them to hold onto their properties longer. This mentality may shift as mortgage rates stabilize, encouraging more homeowners to consider selling.

For buyers, the situation remains daunting. Experts recommend fully-underwritten mortgage pre-approval to present credible offers. Understanding the full cost of homeownership, including rising insurance premiums, is crucial as well.

As the Connecticut housing market continues to evolve, both buyers and sellers must adapt to these new dynamics. The urgency of the market is palpable, as prospective homeowners seek to navigate the challenges of high prices and low inventory. With the market shifting, immediate action is essential for those looking to buy or sell in this changing landscape.