Today’s Real Estate Market: Illogical Growth Patterns
If there’s one word to describe today’s housing market, it’s illogical.
Normally, higher interest rates and stretched affordability should cool things down. But instead, in Fairfield County—especially in high-demand towns—prices are climbing faster than ever. It’s a pattern that feels out of step with the usual rules of real estate.
Take this recent example in Greenwich:
- 2018 Sale: $1.638M
- January 2025 List Price: $2.475M
- April 2025 Closed Price: $2.625M
- July 2025 Relist Price: $2.950M (buyer never moved in)
- Final August 2025 Closed Price: $3.150M
That’s a $500,000 jump in just four months—a 20% increase.
So what’s driving results like this?
- Too few homes for sale. Low inventory means buyers compete aggressively when something good hits the market.
- Plenty of cash buyers. In places like Greenwich, many buyers aren’t borrowing at today’s higher rates—they’re paying in cash or with big down payments, making them less sensitive to interest costs.
- Lifestyle demand. Since the pandemic, buyers continue to put a premium on communities with space, amenities, and strong schools.
- Fear of missing out. Buyers worry that if they don’t act now, they’ll be priced out later—so they make bold offers.
The Greenwich case may sound extreme, but it’s a snapshot of what’s happening in other competitive markets too. Prices keep rising not because it makes sense on paper, but because demand keeps outpacing supply.
The result? A market that feels unpredictable, resilient, and—at times—completely illogical.
