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Connecticut Home Sales Rise in 2025: What CT Homebuyers Need to Know for 2026

January 13, 2026 | Connecticut Housing Market Update | Presented by ReadySetLoan™


The Connecticut housing market ended 2025 with steady momentum. Home sales increased modestly, prices remained elevated, and inventory stayed tight — conditions that continue to shape the experience for Connecticut homebuyers heading into 2026.

For buyers navigating today’s market, one reality stands out: flexibility matters. That includes not only where you buy, but what kind of home you’re willing to consider.



Connecticut Home Sales Show Stability Despite Market Pressure

Across Connecticut, home sales edged higher compared to the prior year — a meaningful result given affordability challenges and higher borrowing costs. Rather than pulling back, many buyers adjusted their expectations and strategies.

Successful Connecticut buyers in 2025 often:

  • Focused on long-term ownership

  • Looked beyond turnkey homes

  • Considered properties that needed updates or improvements

That mindset is becoming increasingly important as inventory remains constrained.



Connecticut Home Prices Stay Strong as Inventory Remains Limited

Connecticut home prices remained historically high throughout 2025, driven largely by limited housing supply. Move-in-ready homes continued to attract strong competition, while properties needing work were often overlooked — creating opportunity for informed buyers.

This is where renovation-focused financing, such as the CHFA Renovation Program, becomes especially relevant. In a low-inventory environment, buyers who can combine purchase and renovation costs into one mortgage often gain access to homes others pass on.



Connecticut Real Estate Is a Town-by-Town Market

Market performance varied significantly by location, reinforcing that Connecticut is made up of dozens of local micro-markets.

Towns that saw strong buyer activity included:

  • Stamford, CT, which continued to lead the state in overall transactions across multiple price points

  • Danbury, CT and Southington, CT, where relative affordability and highway access supported demand

  • Southbury, CT and Middletown, CT, attracting buyers seeking more space and flexibility

  • Burlington, CT, which experienced increased activity as buyers looked for value outside traditional hotspots

In many of these towns, housing stock tends to be older — making renovation-friendly programs especially useful for buyers trying to balance price, location, and condition.



Using CHFA Renovation to Expand Buying Power

For Connecticut buyers struggling to find move-in-ready homes within budget, the CHFA Renovation Program can be a powerful tool. It allows eligible buyers to finance both the purchase price and renovation costs in one loan, helping turn a fixer-upper into a long-term solution.

In markets where inventory is tight and prices are firm, this type of program can:

  • Expand the pool of homes a buyer can consider

  • Reduce competition by targeting overlooked properties

  • Help buyers create equity through improvements

For many first-time and repeat buyers alike, renovation financing has become a practical way to stay competitive in today’s Connecticut market.



RSL Piggy Points

  • Connecticut home sales increased modestly in 2025

  • Home prices remain elevated due to low inventory

  • Buyer demand varies significantly by town

  • Stamford, Danbury, Southington, Southbury, Middletown, and Burlington saw strong activity

  • Renovation-friendly programs like CHFA Renovation can help buyers unlock more options



Neil’s Take

“In a tight Connecticut market, flexibility is everything. Buyers who were open to homes needing updates — and understood programs like CHFA Renovation — were able to create opportunities where others saw roadblocks.”— Neil Caron, Area Sales Manager, CMG Mortgage



Snout-Out: The RSL Perspective

At ReadySetLoan™, our focus is helping Connecticut homebuyers understand how local market conditions, affordability, and specialized programs like CHFA Renovation fit together.

With limited inventory across much of the state, success often comes from thinking differently — whether that means exploring new towns, considering older homes, or using renovation financing to make a property work long-term.

If you’re planning to buy a home in Connecticut in 2026, education and strategy matter more than timing headlines.

ReadySetLoan™ is here to help you build that strategy.





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