January 2026 Connecticut Housing Report

What’s Happening in the Market?

• The January market showed a typical seasonal cooldown following December’s surge, but underlying demand remained steady as buyers continued to adjust to the current rate environment. Nationally, sales softened month over month as winter conditions and post-holiday slowdowns reduced activity, while prices remained stable due to still-limited inventory. 
• In the Northeast, the market continued to demonstrate resilience: buyer demand held firm, new listings remained constrained, and prices stayed relatively steady year over year. Overall, January reinforced that while the market is not booming, it is stabilizing, with the Northeast continuing to stand out for supply shortages and consistent pricing despite affordability pressures.
• Meanwhile, in South Florida, the market entered 2026 with a different dynamic. Sales and prices in several counties continued to rise year over year, supported by migration, international demand, and improving mortgage rates, even as inventory has begun to grow in some segments.
• According to the National Association of Realtors, existing-home sales fell 8.4% in January 2026. Month-over-month and year-over-year sales decreased in all regions. According to NAR Chief Economist Lawrence Yun,

“The decrease in sales is disappointing. The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration.”

• According to Mortgage News Daily, mortgage rates hovered in the high-5% to low-6% range through January, remaining below late-2024 levels and helping keep buyers engaged. As always, well-qualified borrowers may secure slightly lower rates, and keeping pre-approvals current remains key as the market evolves.
• Many homeowners have been waiting for mortgage rates to drop to start planning their move, thinking that will save them money. Fact is, waiting to sell and buy is COSTING money! Now is the time to act.
• Selling and buying at the same time is something most homeowners do to upgrade their homes, downsize, or to snowbird. And many of those homeowners are initially overwhelmed at the prospect, but with a custom plan devised by an expert Real Estate Consultant, you can make the most money on the sale of your home, and find the house you need at the price you can afford.
• Tax season is rapidly approaching! Here are some pointers on how to prepare before you meet with your tax professional.