The Connecticut housing market in February 2025 presents a complex landscape, characterized by both stability and challenges. The Median Sales Price for homes stands at $415,900, reflecting a modest year-over-year increase of 0.2%. This stability in sales prices contrasts with the more significant rise in the Median List Price, which has surged by 11.9% to $485,100. This divergence suggests a growing gap between seller expectations and buyer willingness, potentially impacting market dynamics.

Price Per Square Foot metrics further illustrate this trend. The median Price Per Square Foot has increased by 10.7% to $251, while the Median List Price per square foot has risen by 13.6% to $265. These figures indicate a robust appreciation in property values, albeit with a more pronounced increase in listing prices compared to actual sales prices.

In terms of sales activity, 2,071 homes were sold in February, marking a slight year-over-year increase of 0.9%. However, Pending Sales have declined by 10.9%, totaling 2,676. This decrease in Pending Sales, coupled with a significant 23.8% drop in New Listings, suggests a tightening market with reduced inventory. Indeed, the total inventory has decreased by 17.2% to 4,532 homes, contributing to a sharp 50% reduction in the Months of Supply, now at 2.2 months. Such a low supply level indicates a seller's market, where demand outpaces available housing stock.

The Median Days on Market have remained relatively stable, with a slight increase of 1% to 46 days. This stability suggests that while homes are selling, the pace has not accelerated significantly. The average sale to list ratio is 101.1%, a slight decrease of 0.6% year-over-year, indicating that homes are still selling close to their list prices, albeit with slightly less competitive bidding.

Notably, the percentage of Homes Sold above list price has decreased by 2.8% to 49.9%, reflecting a potential cooling in bidding wars. Conversely, Price Drops have increased by 2.9% to 14.2%, suggesting that some sellers are adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off the market within two weeks has declined by 13.5% to 38.1%, indicating a slower pace of transactions.

Overall, the Connecticut housing market in February 2025 is characterized by rising list prices and a constrained supply, with stable sales prices and a slight cooling in competitive bidding. These dynamics suggest a market in transition, where sellers may need to adjust expectations to align with buyer capabilities, amidst a backdrop of limited inventory and evolving demand patterns.