A year in review and 2025 prediction
2024 Fairfield County Real Estate: A Familiar Story with a Twist
Moderate interest rate cuts, soaring housing costs, high demand, and limited inventory—these key trends encapsulate the 2024 real estate market in Fairfield County. Sound familiar? Aside from the modest rate cuts, the housing market remains largely unchanged from the year before. Persistent low inventory and strong demand continue to drive up median prices.
Interest rates have had the greatest impact on starter homes. In Fairfield County, low inventory has led many buyers to waive mortgage or inspection contingencies to gain an edge in bidding wars. This dynamic enables sellers to prioritize both price and terms.
However, most homeowners are reluctant to list their homes despite favorable prices. Limited inventory offers few options for buying after selling. For those looking to downsize to a condo, competition with first-time homebuyers—some of whom require mortgages—adds another layer of complexity. This dual demand has driven significant increases in condo median prices as well.
Looking Ahead to 2025
Interest rates are unlikely to see significant changes in 2025. On the inventory front, it will take time to build enough housing stock to meaningfully impact the market. Once homeowners begin taking advantage of lower rates to trade up or downsize, we can expect an acceleration in market activity. The hope is that 2025 will bring a more balanced market, with supply better meeting demand.
