Fairfield County, CT continues to be a popular place for people to move to and live. Fairfield County is one of 8 counties in the state of Connecticut and is the home to just under 1 million people. It comprises several popular communities including Fairfield, Darien, Bridgeport, and Newtown. The county is a popular place for people to live as it has close proximity to New York City, great schools, and plenty of recreational activities to enjoy.
Due to the continued demand for housing in this part of Connecticut, being a real estate owner has continued to be a good option for local residents. For those that are looking to either buy or sell a home in this part of the state, understanding local real estate trends is very important. There is much you should understand about the Fairfield County real estate market when determining whether you should buy or sell a property here.
Continued Increase in Real Estate Prices
One of the factors to understand about the real estate market in Fairfield County is that real estate prices continue to be higher. Similar to other real estate markets across the country, real estate prices in Fairfield County soared during the pandemic. This was due largely to historically low-interest rates, low supply, and a desire for many to move. While some markets have seen a decline in prices, Fairfield County continues to see an increase in demand, and as of June 2023, the median sales price was over $650,000.
Decline in Transactions
While the median sales prices in Fairfield County have increased over the past year, the number of transactions taking place has actually gone down. As of June 2023, the number of sales taking place in the month was down about 20% compared to June 2022. This is largely due to a lower amount of people looking to move as many may be locked into their existing properties due to rising interest rates. Sales that do take place tend to close faster with a median time on the market around 30 days, which is down compared to the prior year.
| Metric | August 2023 | August 2022 | Change |
|---|---|---|---|
| Median home price | $549,178 | $515,000 | 6.7% |
| Median price per square foot | $275 | $260 | 5.8% |
| Average days on market | 208 | 120 | 73.3% |
| Number of homes sold | 703 | 1,335 | -47.6% |
As you can see, the housing market in Fairfield County is still very hot. Home prices are up 6.7% year-over-year, and the median price per square foot is up 5.8%. The average days on market has also decreased significantly, from 120 days in August 2022 to 208 days in August 2023. This indicates that homes are selling quickly and that there is a lot of competition among buyers.
Local Demand
While purchasing a home in Fairfield County comes with a lot of competition today, it is important to remember that the demand is localized by the city. There are several great communities in this county, each of which offers unique local amenities. You should consider the different cities throughout the county when looking as some cities have lower prices and less demand than others.
The low inventory of homes is the main driver of the hot housing market in Fairfield County. The number of homes for sale is down 47.6% year-over-year, which means that there are not enough homes to meet the demand of buyers. This is likely due to a number of factors, including the high cost of housing, the limited availability of land, and the strong job market in the area.
Impact on Real Estate Market Moving Forward
While Fairfield County has continued to have a strong real estate market over the past few years, there are factors that can influence real estate trends moving forward as well. Some of the factors that can have an influence on the real estate market in this country, and the rest of the country, are as follows:
- Population Growth – One of the factors that has helped Fairfield County have a strong real estate market has been population growth. While many cities in the northeast have seen stagnant populations, Fairfield County has seen growth in population. This includes a 4.4% growth in population from 2010 to 2020, which has increased the demand for housing.
- Higher Interest Rates – One of the stressors that continues to face the real estate market here, and across the rest of the country, is higher interest rates. Mortgage rates across the country have increased from 3% to 7% in just about one year. While this continued growth is not expected moving forward, it could impact overall affordability. However, it has also made it more challenging to sell a home, which is affecting overall supply.
It is expected that the housing market in Fairfield County will remain hot in the near future. However, there are some signs that the market may be starting to cool off. The number of homes for sale has started to increase slightly, and the average days on market has increased slightly as well. Additionally, interest rates are expected to rise in the coming months, which could make it more expensive to buy a home.
For those that live in the state of Connecticut or the surrounding area, Fairfield County has continued to be a great place to live and own a home. If you are looking to move to this area of Connecticut, there is much that you should know and understand about the local real estate market. There are various factors to understand about the real estate market here.