Fairfield County, CT: 3Q 2024 Real Estate Trends

As we wrap up the third quarter of 2024, the Fairfield County real estate market has shown some interesting trends driven by interest rate changes, inventory challenges, and increased buyer demand.

 

The “talk” lately has centered around interest rates, especially with recent reductions in the Federal Funds rate, which influences long-term mortgage rates. These cuts have reenergized the market, helping to counteract the challenges posed by low inventory levels. However, it’s important to note that interest rates remain susceptible to fluctuations driven by economic indicators like employment and inflation.

 

 

Inventory is still a challenge. Something to note is while inventory is low, it has been at a consistent level throughout 2024. Additionally, new listings are up just slightly compared to last year indicating there is some lingering inventory that can provide some opportunities for buyers.

 

Let’s explore how homes are being sold and which ones are moving off the market swiftly. Currently, Fairfield County has an absorption rate of just 2.4 months. To put that into perspective, a balanced market, where neither buyers nor sellers have the upper hand, typically has a 5-6 month supply. This indicates that we are still firmly in a seller’s market. In sought-after locations, homes that are ready to sell are seeing heightened competition, often receiving multiple offers. This has led to increases in both the median home prices and the sales-to-list price ratios.

 

Additionally, the Days on the Market (DOM) have decreased to 34 days, indicating faster transactions for homes that are priced right. On the flip side, homes that are not in prime locations or need updates are taking longer to sell. This scenario is opening up opportunities for buyers that haven’t been available in the past four years.

 

Inventory Levels: Total listings fell by 8.3% compared to last year, keeping competition high for buyers.

 

Unit Sales: Throughout the 3Q of 2024, unit sales have declined by 7.4%. Driven by limited availability of homes for sale.

 

Median Sales Prices: Median sale prices have increased 8.0% compared to last year. Home prices are driven up due to a lack of inventory.

 

Sales-to-List Ratios: The sales-to-list price ratio hovering above 1% clearly indicates that properties are consistently closing above their asking prices.

 

Days on Market (DOM): The average Days on Market (DOM) fell by 22%, signaling a fast-paced market where buyers must be prepared to act quickly.

 

As we enter the fourth quarter of 2024, the real estate market in Fairfield County is expected to continue its ever-evolving trend. With the ongoing influence of low interest rates, buyer demand is expected to remain strong, particularly in premium locations. Inventory levels, although slightly improving, will likely stay below the balance point, maintaining a competitive market that favors sellers.

 

Median prices are projected to hold steady or increase further, as buyers compete for the limited available properties. This dynamic suggests that those entering the market—whether buying or selling—should be well-prepared for quick decisions and potential bidding wars. Economic indicators such as job growth and consumer spending will play crucial roles in shaping market trends, especially if interest rates remain stable or decline further.

 

 

For the remainder of 2024, both buyers and sellers will find ample opportunities in the current market, and being well-prepared is crucial. I assist my clients by helping them understand the current market, managing their expectations, and developing a strategic plan to achieve their real estate goals. My role is to advise and guide, ensuring a supportive and informed relationship with each client.

 

Let’s start you on your journey to homeownership in Fairfield, CT.