In Connecticut, residents enjoy access to the best of New England at a more affordable cost compared to other parts of the region. For instance, the cost of living in Hartford is around 30% lower than in Boston and over 10% lower than in Burlington, Vermont. Additionally, Bridgeport was ranked as one of the best places to live in the entire country by Bankrate.
Connecticut offers a variety of charming small towns, but prices tend to increase the closer you get to New York City. When it comes to buying or selling a home in Connecticut, understanding the housing market is crucial.
Connecticut’s housing market can vary significantly in price from one area to another. Towns with a convenient commute to Manhattan, such as Greenwich, New Canaan, and Darien, have significantly higher price points. In fact, the median sale price in Greenwich as of August 2023 was over $2 million, while in Bristol, it was a more affordable $300,000.
Regardless of price, every local Connecticut market is fairly competitive due to an ongoing supply shortage. Currently, the state has only a two-month supply of housing inventory for sale, far below a balanced market’s five or six months.
According to data from Redfin, home prices in Connecticut have been increasing. In August 2023, the median sale price in the state was $428,000, representing a 10.1% increase from August 2022. Inventory has also dropped significantly, with 43.5% fewer homes for sale compared to the same month last year. Homes typically spend 34 days on the market before selling, and the sale-to-list ratio was 103.9%, meaning homes typically sell for around 4% above their initial asking price.
Closing costs typically average 2.1% of the purchase price in Connecticut, or around $9,000 for a median-priced $428,000 home.
While the Connecticut housing market favors sellers due to the supply shortage, the rise in mortgage rates has made things tougher for both buyers and sellers. For home sellers, there is a shortage of inventory, making it a seller’s market. Summer tends to be the prime time to list homes, with June and July seeing higher sale prices. However, sellers should also be prepared for closing costs, including conveyance taxes.
For homebuyers, the combination of high mortgage rates and high prices presents challenges. It is crucial to determine your budget using Bankrate’s home-affordability calculator and get preapproved for a mortgage to streamline the buying process. For those looking for a more affordable option, the condo market in Connecticut has a lower median price compared to single-family homes.
Experts predict that the Connecticut housing market is unlikely to crash in the short term. Inventory will likely remain low as homeowners hold onto their low mortgage rates, resulting in resilient prices. The state is also working on increasing new construction to address the shortage, with permits for new builds hitting a 15-year high in 2022.
It is advisable to work with a local real estate agent when buying or selling a home in Connecticut. Their expertise and knowledge of the market can help you navigate the process and potentially save time and money.
– Core Logic’s ClosingCorp
– Connecticut Department of Economic and Community Development