As we look back at 2025’s real estate market for greater Litchfield County we can make some generalizations. But our area is as unique as our houses and the average numbers don’t translate well to our day to day business. Regardless, here are some thoughts.
Effectively the county’s averages were “flattish” - ie single digit changes upward (mostly) from 2024. Inventory fluctuated in a range of 260-500 single family homes for sale. This level stood at 378 at year end but is only 277 as of 1/22/2026. Reminder: this is down from 1200-1300 single family homes pre COVID!
When we dig deeper and break the market into segments there are more important trends for today’s sellers and buyers to be aware of as they try to transact. Let’s look at the segments as follows:
Sub 500,000. This segment is structurally challenged. The topic of affordability which is all over the news is most evident in this segment. Things are selling for 50-60% or less of replacement cost still. As long as don’t need major work, or have a big hurdle (location/lot wise) and don’t price aspirationally you can move properties quite quickly. The folks trying to address affordable housing are largely focused in towns with sewer and public water. Very few in Litchfield County. The random “affordable houses” being built require subsidies of roughly 50%. Private donors and some grants help, but towns could do more by making zoning easier and waiving property taxes etc. Building codes, labor and material costs are out of the hands of towns and are the primary drivers of costs.
Under $1,000,000. This range is structurally challenged. The topic of affordability which is all over the news is most evident in this segment. Things are selling for less than replacement cost still. As long as this continues, builders will not build new houses. If a house does not need major work and is priced correctly, it should have offers quickly. If you are trying to sell a house in this range and its been on for more than 90 days, then you need to reconsider your price or marketing. Buyers are active.
$1,000,000 to $3,000,000. There is decent buyer demand here, but it’s a pickier buyer for the most part. As of today, there are 61 listings in the mls - but there is shadow (private or temporarily withdrawn) inventory of at least half that much. There were 165 closed mls sales in this bucket in 2025. We have only 16 pending as of today. Velocity is slowing. This is a price point where presentation, competitive pricing, and not needing a lot of work matter. Weekend buyers strongly prefer move-in condition and that is hard to find. Lakefront in this range has the best demand, but Lake Waramaug surpassed this price range a while ago and those looking for lakefront in this range will need to look at Bantam, Candlewood, or Woodridge.
$3,000,000 plus. The luxury end of our market continues to be idiosyncratic and choppy. We were proud to list the highest priced sale in the county in 2025 at 6.7mm. Unbelievable bargains can be had on a replacement cost valuation basis. There are deals but usually theses houses have to sit a while until Sellers become realistic. Buyers are even more selective in this range and less likely to compromise on the vision of what they want. Some decide to build their own, but this is an expensive and time consuming endeavor. Per sq foot construction costs for luxury homes are running 750-1500 a sq ft. With land costs, pools, landscaping etc it’s easy for a $3mil project to turn into a $5mil. We had 18 properties close in the mls in 2025 above $3mil, and there are currently 23 listed. There are probably 20+ “private listings” in this range as well. But there is more inventory available in this range that any other. Rates coming down should help a little.
The proliferation of “private listings” is not unique to our market. It’s a strategy being promoted by the larger brokers across the county. We have always had some of these listings, but now it’s become more prevalent and we did a lot of private transactions last year. Most brokers will say it’s “sellers choice”, or a “way to test the market”….and of course some just want to try and control more of the inventory. It’s part of the territory now, unless the courts mandate otherwise. Navigating this market as either a seller or buyer has never required professional help to help guide you more.
We believe the much of the shadow inventory will come to market as the weather turns. We are working on dozens of new listings currently. Opportunities for buyers at all price points will arise - but if you are looking under $3mil, you need to be ready to act.
Please reach out if you have any questions or are looking for advice in navigating today’s real estate landscape.
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