Fairfield County CT Real Estate Is Not Slowing Down

What the Market Is Really Heading Toward in 2026

If you think Connecticut real estate is finally slowing down, you may be surprised by what’s happening behind the scenes. One of the most significant market shifts we’ve seen in years is already underway, and many buyers and sellers will not fully feel it until the market moves again.

Demand across Connecticut has not faded the way many expected. As we head into 2026, price pressure remains very real, especially in Fairfield County and surrounding commuter markets. Inventory continues to collide with buyer demand, and while new housing initiatives are beginning to take shape, meaningful relief remains a long way off.

I’m Jennifer Lockwood, a full-time Realtor in Fairfield County. My team and I work with buyers and sellers every week navigating these exact conditions. What follows comes directly from market data and what we are seeing unfold in real time across the local market.

How We Got Here: 2020–2025

Many assumed that rising interest rates would reset the housing market. In Fairfield County, that never happened. Instead, the market recalibrated under tighter conditions.

Prices kept climbing

As of the end of 2025, the typical home value in Fairfield County is approximately $798,500, up about 8.6 percent year over year. Homes continue to sell quickly, averaging roughly 31 days on market, and many still sell at or above asking price.

Luxury and upper-tier markets have seen especially strong appreciation. Over the past year, median prices increased approximately:

• Darien: $2,400,000, up 21.5%
• New Canaan: $2,600,000, up 15.0%
• Greenwich: $2,400,000, up 12.6%
• Westport: $2,300,000, up 6.4%
• Wilton: $1,350,000, up 11.6%
• Fairfield: $1,072,000, up 18.5%
• Weston: $1,399,000, up 3.6%

Despite higher interest rates and inflation pressure, buyers continued to pay up, particularly for well located, well prepared homes.

Inventory never recovered

Inventory remains one of the most defining forces in Connecticut real estate. At the end of 2025, single family inventory in Fairfield County is nearly unchanged from 2024 but remains approximately 3,664 homes lower than 2019, a decline of roughly 65%!

Some sellers pushed pricing aggressively and sat on the market. Others who priced appropriately and prepared their homes for the market received multiple offers. The takeaway is clear, low supply has become the norm, and pricing strategy matters more than ever.

Demand held firm

Even with higher borrowing costs, the number of homes sold in Fairfield County increased by approximately 1.6%.  Buyers adjusted expectations rather than stepping away. Structural scarcity, commuter demand, and lifestyle appeal outweighed interest rate headwinds.

What many expected to be a cooling or correction never arrived.

Who Is Buying and Why It Matters

First-time buyers are under the most pressure. The average first-time buyer is now around 40 years old and represents only about 21% of the market. They are navigating affordability challenges while competing directly with downsizers, many of whom bring significant equity or cash.

At the same time, the luxury market remains active. High end buyers are selective but decisive when the right home appears. Well located and well priced properties continue to attract clean, competitive offers.

Supply constraints are unlikely to ease. Land is limited, and most new construction comes from teardowns and rebuilds, adding quality but not meaningful volume. Growth remains slow and constrained, which supports long-term pricing.

Discover where wealthy buyers are buying real estate in Fairfield County

The Three Questions Shaping 2026

Will demand remain high?
Demand is not going away. In some Fairfield County markets, it may intensify, especially if interest rates ease even modestly. Commuter demand, lifestyle priorities, and buyers who have been waiting on the sidelines continue to support the market.

See what's new and what's coming to Fairfield County in 2026

Will supply improve?
True inventory relief remains unlikely. Many sellers who move become buyers again, increasing activity but not expanding supply. Tight inventory is expected to persist through 2026.

Check out my real estate market predictions for 2026

What will interest rates do?
Rates remain the wildcard. Most forecasts call for modest easing while remaining in the low 6% range, not a return to ultra low levels. Even small drops tend to trigger significant buyer response, bringing sidelined buyers back into the market and expanding competition.

The result is a market where activity can increase quickly, but supply does not move fast enough to meet it. A major price correction in Connecticut, particularly in Fairfield County and commuter towns, appears unlikely.

Fairfield County real estate is entering 2026 with steady demand, limited supply, and continued pressure on affordability. The greater risk is not a dramatic crash, but a slow squeeze that makes entry more difficult over time.

In this environment, timing alone is not a strategy. Preparation, pricing, and local market insight matter more than ever.

In this video, I break down the growing conversation around migration from NYC to Connecticut’s suburbs and why there is an increased interest in the area.

Seller Takeaway

For homeowners, the market continues to offer opportunity, but results depend on strategy. Inventory remains low, buyer demand is coming from multiple directions, and homes that are well prepared and priced with intention continue to perform best. Understanding how your specific town and price point behave will be critical as we move into 2026.

Buyer Takeaway

For buyers, waiting for a dramatic correction has not paid off in this region. While affordability remains challenging, demand is durable and competition can intensify quickly if rates ease. Buyers who are prepared, flexible, and guided by local insight will be best positioned to succeed.

Whether you’re considering a move now or simply starting to think about what the next year or two may look like, having the right information early makes all the difference. Every town, neighborhood, and price point in Fairfield County behaves differently, and understanding where you fit can create real leverage.

If you’re thinking about buying, selling, or just want to talk through your options, I’m always happy to be a resource. Feel free to reach out anytime, whether your plans are immediate or still on the horizon, I’m here to help guide you through the process with clarity and confidence.

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