Inventory Slows, Foreclosures Rise: What That Means for Connecticut & New England

Neil Caron
Oct 20
2 min read

October 2025 | Market Signals | Presented by ReadySetLoan™️

A New Shift: Inventory Flattens While Foreclosure Filings Climb

A key piece of data has emerged: foreclosure filings across the U.S. are rising, even as the housing inventory rebound loses steam. In June 2025, ATTOM reported that 1 in every 4,361 housing units faced a foreclosure filing—with Connecticut ranking 20th nationally, at 1 in every 4,609 units.

In the first half of 2025, total foreclosure filings jumped to 187,659 properties, a 5.8% increase from 2024. Meanwhile, listings in New England markets are flattening, as new-home entries slow and delistings rise.

This divergence—softening inventory + rising distress—creates a complex backdrop for buyers and sellers in Connecticut.

Region & State Focus: What the Numbers Say

Connecticut’s foreclosure rate in June 2025: ~1 in 4,609 homes.
National trend: Foreclosure filings are up 5.8% in H1 2025 vs. H1 2024.
Inventory trend: In CT, new listing growth is stalling, while total supply gains are modest and uneven.
Regional pressure: New listings in Massachusetts and Rhode Island are softening, tightening cross-border market dynamics for Connecticut’s border towns.

Why This Dual Trend Matters in CT & New England

Heightened Buyer Caution Rising foreclosures put a spotlight on financial risk. Buyers will demand clearer underwriting, stronger cash reserves, and more scrutiny.
Strategic Edge for Sellers In markets with tight supply, sellers with clean homes, strong pricing, and minimal contingencies gain advantage—especially when some buyers start shifting toward distressed properties.
Pricing & Risk Awareness In Connecticut, pricing can’t ignore latent risk. Homes near foreclosure or in neighborhoods with elevated distress may sell at a discount—or get extra scrutiny.
Opportunity for Investors & Rehabbers As distress creeps up, some properties may cycle back into the market via foreclosure—creating niche opportunities for flippers, investors, and rehab-focused buyers.

🐷 RSL Piggy Points

Inventory growth is leveling off just as foreclosure filings rise.
Connecticut’s foreclosure rate (1 in 4,609 units) remains high relative to many states.
In H1 2025, U.S. foreclosure filings hit ~187,659 (+5.8% YoY).
Deep local insight and caution are necessary—neighborhood risk is becoming a material factor.

Neil’s Take 🎤

“Connecticut sits at a crossroad of tension: limited supply and growing financial stress,” says Neil Caron, Area Sales Manager at CMG Mortgage.“In this environment, the difference between safe and risky can come down to just one factor—clarity. Buyers, sellers, and agents must scrutinize offers, locations, and cash buffers with urgency.”

RSL Perspective

At ReadySetLoan™️, we monitor both sides of the market: supply and distress indicators. That’s why we combine ZIP-level inventory trends with foreclosure data to guide clients. You don’t just need to know what’s for sale—you need to know what’s under pressure.

When inventory slows and foreclosures rise, clarity is your guardrail.

🐽 Final Snout-Out

The recovery in housing listings is stalling. At the same moment, foreclosure filings are rising. For Connecticut markets, that creates a layered risk environment where opportunity and caution collide.

🏁 Final Lap

In a market where supply is tightening and financial stress is creeping, hesitation is costly. For Connecticut buyers, sellers, and investors, success now demands precision, insight, and readiness. With ReadySetLoan™️, you’ll not only read the signals—you act on them with confidence.