How Is the Connecticut Real Estate Market Right Now?

By Andy Sachs

With over 20 years of experience and more than 1,000 successful transactions, Andy Sachs is one of the market’s most trusted real estate agents.

If you’re thinking about buying, selling, refinancing, or even staying put this year, what’s happening in the Connecticut housing market in 2026 still affects you.

Just last week, I met with a couple trying to decide whether to move or refinance. They’d been watching the news, but every headline seemed to say something different.

The good news is that 2026 is bringing some much-needed clarity to the Connecticut market. So, before you make any decisions, here are the four things you really need to know, based on what I’m seeing, hearing, and helping clients navigate every day.

1. Interest rates are easing. Rates are trending down slowly, but enough to improve affordability. Realtor.com forecasts mortgage rates averaging around 6.3% in 2026, which is slightly better than last year’s numbers.

With the Fed’s rate drop back in December, we’re expecting to see:

● More buyers coming back

● Homeowners exploring refinancing options

● A little more breathing room compared to the high-rate years

We’re not heading back to 3% rates. But compared to the pressure of the last few years, there’s more breathing room. That’s a win for both buyers and homeowners trying to plan their next step.

2. Inventory is growing. Nationally, Realtor.com expectsfor-sale inventory to rise nearly 9% in 2026, and we’re seeing that shift show up here in Connecticut as well, though not evenly.

Inventory has increased in areas like Hartford, New Haven, parts of Fairfield County, and towns throughout central Connecticut. At the same time, some coastal markets remain tight, with fewer homes available and continued competition.

This is why national headlines only tell part of the story. In 2026, your ZIP code matters more than the overall market averages. Two towns just miles apart can be moving at completely different speeds.

3. Move-in-ready homes are the most competitive. One of the clearest trends in 2026 is the growing demand for move-in-ready homes. Many Connecticut homeowners are choosing to remodel instead of sell, especially in towns where upsizing or downsizing options are limited.

That means turnkey homes are in short supply, and when they hit the market, they tend to attract strong interest quickly. Sellers who invest in small, strategic upgrades often see better offers and faster closings.

On the buyer side, condition matters more than ever. When a well-maintained home comes on the market, being prepared to act quickly is critical in 2026.

4. AI is changing real estate, but local expertise still leads. Artificial intelligence is now part of everyday real estate decisions. More than one-third of REALTORS® are already using AI tools to help analyze pricing, identify strong comparables, and match buyers with homes that fit their needs more efficiently.

AI provides speed and data. What it cannot replace is local insight, judgment, and strategy. Data can point you in a direction, but interpreting that data and applying it to your specific town, street, and situation is where experience still matters most.

Think of it this way: AI provides information, but a trusted professional helps you use that information wisely. The best outcomes in 2026 will come from using both powerful tools and experienced guidance.

The Connecticut housing market in 2026 is more stable and more transparent than it’s been in years. Rates are easing. Inventory is improving. Buyer and seller expectations are becoming clearer.

But local differences still matter. What’s happening in Stamford, Simsbury, Newtown, Bethel, or anywhere in between may look very different from the statewide picture.

If you want a personalized breakdown of what these trends mean for your town and your options, let’s talk. You can call or text me at (203) 648-4043 or AndySachs@AroundTownCT.com.

You can also click here to set up a quick one-on-one strategy session with me. I’ll look at your numbers, your timing, and your local market so you’re clear on the road ahead.