Is the Job Market Slowing Down Your Home Sale? What CT Data Says in 2025

🏡 Buyers are still active, but with job growth slowing, Connecticut’s housing market may be entering a new phase in 2025.

As of mid-2025, Connecticut's housing market is showing signs of resilience, even as the job market softens. For home buyers and sellers alike, understanding how these trends interact is essential for making informed decisions.

Connecticut's Job Market: Cooling but Strong

In May 2025, Connecticut's unemployment rate ticked up to 3.8%, a modest rise but notable as the highest in over a year. The state lost 6,500 nonfarm payroll jobs in May alone, suggesting a slowdown in economic activity. However, the private sector remains relatively strong, with record-high job totals and wage growth earlier this year.

These labor shifts can affect housing in two ways: reduced job stability might deter buyers, while higher wages for those still employed could maintain demand.

Real Estate Snapshot: Home Prices Keep Rising

Despite the labor softening, housing prices are still climbing. The median sale price for single-family homes reached $465,000 in May 2025, up 6.3% from the previous year. Sales volume also rose 2.8% year-over-year, indicating continued buyer activity.

Yet, there are signs of cooling beneath the surface. Pending sales have dropped by 9.3% from last year, and inventory levels remain tight, with just 1.73 months of supply available. Homes are still moving fast—median days on market is just 14 days—but bidding wars may be less intense compared to prior years.

Affordability Squeeze and Buyer Behavior

Buyers are facing affordability pressures. Home prices have consistently outpaced wage growth, especially in the $400,000 to $600,000 range, where bidding remains most competitive. Listings in this price band frequently close 3% to 4% above asking.

Still, more than a quarter of active listings have seen price drops, a sign that buyers are becoming more selective. Those watching the labor market may be wary of overextending financially.

Strategic Takeaways for Buyers

• Watch for Discounts: Listings with price reductions are becoming more common.

• Time the Market: A softer job market may translate into better buying opportunities by late 2025.

• Focus on Value: With fewer bidding wars, buyers have more room to negotiate and conduct thorough due diligence.

Strategic Takeaways for Sellers

• Act Now: Market conditions are still favorable, particularly for homes under $600,000.

• Price Smart: Overpricing may backfire as buyer demand cools.

• Prepare for Change: Economic uncertainty could widen the gap between list price and sale price later this year.

Local Nuances Matter

Conditions vary across Connecticut. While Fairfield County may continue seeing robust demand, markets like Hartford or New Haven could feel greater effects from employment shifts. Local job market dynamics often mirror housing trends, making neighborhood-level data crucial.

Final Thoughts

Connecticut's housing market has shown remarkable strength, even as employment growth slows. For buyers, this could mean less pressure and more room to negotiate. For sellers, the window of peak opportunity might be closing. Either way, staying informed and acting strategically is key.

Contact us below if you're looking to buy, sell, or invest in Connecticut real estate. Our team provides expert, local guidance to help you succeed in any market.

Governor Lamont Veto on Housing Bill Puts CT’s Housing Crisis Back in Local Hands

Connecticut is in the midst of a housing supply crisis, with a shortfall estimated at over 99,000 units statewide. This gap has contributed to rising prices, constrained availability, and growing frustration among renters, buyers, and developers. A recent legislative effort, House Bill 5002, aimed to address these issues by mandating that every town contribute a "fair share" of affordable housing and easing zoning restrictions for multi-family developments. However, the bill was vetoed by Governor Ned Lamont, setting off renewed debate over how the state should tackle its housing challenges.

The Supply Crunch

The numbers tell a clear story: while the national housing supply grew by 9.4% over the last decade, Connecticut saw only a 3.9% increase. The pace of residential building has slowed, with a 10% decline in permit issuance compared to the previous year. This lack of new construction has strained the market, pushing home prices higher and reducing rental availability. These trends impact not only first-time homebuyers and renters but also the broader economic health of the state, as employers struggle to attract and retain workers due to limited housing options.

Why the Bill Was Controversial

House Bill 5002 sought to accelerate housing development by standardizing zoning expectations across municipalities. It proposed minimum thresholds for affordable housing units in each town and reduced requirements for parking and density that often hinder the construction of smaller-scale multi-family homes.

Supporters of the bill argued that it would help break down barriers to housing development and promote more inclusive, transit-accessible communities. Critics, however, viewed the bill as an overreach into local governance. Municipal leaders expressed concern that the mandates could undermine thoughtful community planning and burden towns with one-size-fits-all policies.

Governor Lamont acknowledged the state's housing needs but emphasized the importance of local control, suggesting that towns should lead housing efforts with support and incentives from the state, rather than under strict legislative mandates.

Policy Path Forward

Despite the veto, the conversation around housing reform is far from over. Governor Lamont indicated he is open to a revised version of the bill that balances the need for housing with respect for local autonomy. This opens the door to a potential compromise that may include regional planning frameworks, targeted incentives for compliance, or a phased approach to housing targets.

Stakeholders across the real estate spectrum, developers, municipal officials, housing advocates, and legislators—are likely to be deeply involved in shaping the next proposal. The debate is expected to continue into the next legislative session, as the state grapples with how to align long-term housing goals with community needs.

Implications for Real Estate Stakeholders

For developers and investors, the veto introduces a degree of uncertainty. While some may view the delay in reform as a setback, others might see an opportunity to engage in shaping a more collaborative policy that offers clarity and support for responsible growth.

Homeowners and neighborhood groups may welcome the preservation of local decision-making, but without broader action, affordability challenges may persist. Buyers and renters will continue to feel the squeeze unless the housing supply meaningfully expands.

Connecticut's housing supply crisis remains a pressing issue. Addressing it will require not only bold policy but also careful collaboration among all levels of government and the real estate community. As the state considers its next steps, the focus must remain on solutions that are equitable, effective, and adaptable to the diverse character of its towns and cities.

Need help navigating the shifting real estate landscape? Whether you’re buying, selling, investing, or managing property, contact us below for expert local insight and strategic support.

Is the Hamden Real Estate Market Slowing Down? Here’s What the Data Says

The real estate market in Hamden, Connecticut, is showing signs of balance after years of rapid appreciation and tight inventory. If you’re considering buying, selling, or investing in Hamden’s single-family housing market, understanding current trends is crucial. Here’s a deep dive into the latest numbers, what they mean, and how they affect you.

📊 Sales & Pricing: Slight Cooldown, But Still Competitive

In May 2025, the median sale price for a single-family home in Hamden was $365,000, representing a slight dip of 0.8% compared to the same time last year. The average sale price, however, rose by 2.7% to $407,528, suggesting that higher-end properties are still drawing strong interest.

Other key figures include:

• Average Price per Square Foot: $232 (+5.4% YoY)

• Number of Sales: 48 homes sold (down 9.4% YoY)

What it means:

Prices are holding steady with slight fluctuations, indicating a more measured, stable market rather than a sharp correction or overheated boom.

🔄 Market Activity: Volume Down, Opportunities Up?

While May was one of the busier months of the past year, it still trails behind the most active months like July 2024. The number of homes sold is lower than last year, but that could mean less competition for motivated buyers and an opportunity for sellers to price strategically.

📈 Buyer Demand: Still Strong, But More Disciplined

• Number of Sales: 48 (-9.4% YoY)

• Median Sale Price: $365,000 (-0.8% YoY)

• Over/Under Asking: Homes sold 5.3% over asking on average, unchanged from last year.

• Median Days on Market: 12 days (2 days faster than 2024)

Buyers are still aggressive when they see value, and quick to act, but they’re not chasing overpriced listings.

💵 Demand by Price Range: Where Are Buyers Focused?

Price Range	# of Sales	Median DOM	% Over Asking
$200k–$399k	89	15 days	3.85%
$400k–$599k	46	10 days	6.34%
$600k–$799k	9	25 days	5.51%
$800k–$999k	2	11 days	19.1% (!!)
$1.4M+	1	317 days	-6.25%

Takeaway:

Homes in the $400k–$599k range are hot, with strong competition. The luxury market, however, is moving slowly and often below asking.

📦 Inventory: Supply Inches Up But Still Tight

• New Listings: 70 (+16.7% YoY)

• New Pending Sales: 42 (-31.1% YoY)

• Active Listings: 54

• Months of Supply: 1.13 months

What is “Months of Supply”?

It’s how long it would take to sell all current inventory if no new homes were listed. A balanced market is 4–6 months. At 1.13 months, Hamden is still firmly in a seller’s market, though slightly less extreme than prior months.

📊 Inventory by Price Range

Price Range	Months of Supply
$200k–$399k	0.87
$400k–$599k	1.25
$600k–$799k	2.00

Lower and mid-priced homes remain scarce, keeping competition tight. Higher-end homes are slowly building inventory.

🏘 Housing Breakdown: What’s Selling?

• 3-Bed Homes: Most popular (100 sales), median price $350,000, avg. 20 DOM

• 4+ Beds: Median sale of $396,550, selling faster than smaller homes in some cases

• 2 or Fewer Beds: Least common and lower priced at $270,000 median

The sweet spot for buyers and sellers is the 3-bedroom home — affordable, quick to move, and in high demand.

📉 Price Drops: Strategic Adjustments

• 24% of current listings had a price drop

• Average Drop: 9%

• Most Price Drops: In the $400k–$599k range (35% of listings)

• Median Days Before Price Drop: 26

• Median Days from Price Drop to Pending: 14

Insight:

Sellers who overprice often must adjust within a month. Well-priced homes still move fast — sometimes in days — but pricing strategy matters more than ever.

🧠 Final Thoughts

Whether you’re entering the market as a buyer, seller, or investor, Hamden offers a mix of opportunity and competition:

• Sellers: It’s still your market, but overpricing will cost you. Strategic pricing leads to faster sales and better offers.

• Buyers: With slightly less competition than last year, now might be a good time to act before supply tightens again.

• Investors: Look to the $200k–$399k range for volume and liquidity. These homes sell quickly and appeal to a broad buyer pool.

💬 Need guidance buying, selling, or investing in Hamden? Contact us below — we’re here to help with home buying, selling, tenant placement, property management, and investment strategies tailored to your goals.