Lower Fairfield County End of Year Market Update, 2023 vs 2022

Are you looking to move or sell your property in Fairfield County, CT? If so, keep on reading!

All towns across Fairfield had a significant drop in number of sales ranging between a -18% to -32% difference from 2022. This drop is a direct result of interest rate levels not seen in two decades. Homeowners that bought 3 to 10+ years ago have very low mortgage rates and by selling, they would be entering the market as homebuyers at a much higher rate. Inventory will continue to be affected as homeowners keep their properties off the market.

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The median sales price remained unchanged at $2,000,000 in Westport when compared to 2022 but in all other towns in Fairfield County, the median sales price increased up to 13.9% YOY. Less inventory resulted in a very competitive market for buyers which drove prices up.

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Lastly, the most followed housing market indicator is the closed price vs the listed price and to no surprise almost all homes closed within close range or over the listed price in 2023.

Predictions for 2024: To predict what is in store for us in 2024, I closely monitor inflation, mortgage rates and employment data such as wages, job growth and the changing landscape around working from home. So what does this data tell me? Well according to the Bureau of Labor Statistics, inflation has slowed down significantly since it peaked in 2022 and when inflation cools down, interest rates typically follow suit. As we have seen in the past few weeks, interest rates have come down and they are expected to come down some more in 2024 but the big question is by how much.

The market is predicting interest rates to be in the 6% range next year.  When this adjustment happens, a slew of new buyers will enter the market andmore buyers = more competition = increased housing prices

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If you are looking to buy or sell in 2024, please contact me. Let’s set up a plan so you can be prepared for any scenario!

Stephanie Betancourt

REALTOR® NY & CT

William Raveis Real Estate

‍Stephanie.Betancourt@raveis.com

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