1. Rising Inventory Means Less Competition
One of the most significant advantages of the 2025 housing market is the expected increase in home listings. For years, the Connecticut market has been constrained by low inventory, causing bidding wars and driving prices up. More homes for sale in 2025 will give buyers more options and reduce competition, which could mean less stressful negotiations and the potential to find a better deal.
Months of supply refers to how long it would take to sell all the homes currently on the market at the current sales pace, assuming no new listings are added. It takes into account both the current inventory (active listings) and the rate at which homes are selling. This measure gives a clearer picture of whether the market is favoring buyers or sellers and whether supply is balanced with demand.
So, if you want to assess overall market conditions, months of supply is a better indicator of inventory health and balance. We’re showing both new listings and months of supply graphs because each provides valuable, complementary insights into the market.
2. Interest Rates Could Improve Gradually
While mortgage rates are still higher than the historic lows of the past decade, there is a positive outlook for 2025. Rates are expected to decrease modestly throughout the year, potentially making housing more affordable for buyers. If rates fall closer to the 6% mark by mid-2025, it could unlock opportunities for many prospective buyers who have been sitting on the sidelines.
3. Locking in Housing Costs
Buying a home in 2025 could provide long-term stability in your housing costs. With rents continuing to rise, locking in a mortgage payment now could save you money over the next several years. For many homeowners, mortgage payments can be more predictable than renting, especially as landlords adjust rent prices.
4. Less Competition Means More Negotiation Power
The expected increase in available homes in 2025 means fewer buyers will be scrambling to place bids on each property. This can translate into more room for negotiations. Whether it’s a request for repairs, a price reduction, or seller concessions, having more homes on the market can put buyers in a stronger position to negotiate favorable terms.
