Litchfield, Connecticut: since 1751, it claims a place in U.S. history as one of the nation’s oldest continually inhabited towns, a Revolutionary War hotspot, and home to the nation’s first law school. Litchfield boasts a proud history, and its numerous luxury properties reflect that tradition.
But what’s going on in Litchfield County real estate today? How has it changed recently? And what makes living in Litchfield County, CT, such an enticing plan? Follow along with us as we discuss everything you need to know.
Litchfield housing market prices, trends & forecasts 2023
First, we’ll cover the pricing trends from the previous year in broad strokes. Then, we’ll introduce the major market shifts that arose in 2023.
Litchfield housing market forecast 2023
Generally speaking, the housing market in Litchfield has seen a significant upward shift across the board compared to the numbers surveyed in 2022. COVID’s slow reduction in the neighboring communities has encouraged more buyers to enter the market.
The monthly supply of homes has also fallen, which leads to a rise in home values. We can confidently say that the real estate environment favors sellers (otherwise known as a seller’s market).
Home values increasing
Across the Litchfield County real estate market, home values are consistently rising. In February 2023, the average sale price for single-family homes in Litchfield hit a recent high, well above figures from February 2022. Still, we should remember that not every home in the area is experiencing such a meteoric rise in value. The median sale price in Litchfield is slightly lower than in 2022. Consult with an expert real estate agent like Matt Rose for up-to-the-minute data on your preferred location.
Rising interest rates
As we’ve seen across the country, interest rates for mortgage loans have remained historically high. That pattern is no different in Litchfield. Mortgage rates peaked in November 2022 at an average of 7.08% nationwide. In February 2023, they fell to about 6%, but as of mid-March, they have risen again to nearly 6.6%.
Looking at Litchfield in particular, we notice that the average interest rate falls below that national average, with many lenders keeping mortgages closer to the 6% figure.
Investing indicators will favor landlords
What does the outlook show as far as landlords are concerned in Litchfield County real estate? On the whole, the market looks strong for landlords in the area. Demand for housing remains high nationwide, and Connecticut is no different. The price for single-family and condo/townhouses in Litchfield has been consistently high since 2020 and the beginning of the COVID outbreak. That means that sellers and landlords are maintaining a solid position.
Positive net population migration
Litchfield’s population is growing — all the figures and census figures point to the same fact. Since 2020, the population of Litchfield has grown about 2.8% yearly, with the median age lowering slightly to 55, a decrease of 7.3%.
However, the number of new listings has stayed low, even dipping in February 2023 to five homes listed per month, a decrease of 17%. Nevertheless, a consistent flow of new residents to the area will ensure that home prices continue to rise, which is good news for sellers.
Litchfield county housing market trends 2023
Now, we can focus on the market trends for those living in Litchfield County, CT.
How COVID-19 affected the Litchfield real estate market
As we mentioned, the COVID-19 pandemic affected the real estate market and interest rates for homeowners nationwide. Litchfield, home to a relatively high-earning population, fared better than most towns and cities in the country.
Still, the average sale price fell among single-family homes in 2020–2021. What we’re excited about today in 2023 is the heroic return to form for home valuations. Not only have we recaptured the values of 2019, but we’re also breaking records again thanks to high demand and low inventory. This is especially true in the luxury real estate market.
Litchfield foreclosure statistics 2023
Foreclosure rates are at an all-time low in 2023. The strong economy drives this pattern in Connecticut across a variety of industries. Management professionals, educators, health diagnosticians, office administrators, and sales-related workers make up most of the Litchfield economy, which is highly diversified. Thus, foreclosures are low in the area, and unemployment fell to decade-wide lows while new employment rose 10% yearly.
Litchfield real estate market: Should you invest?
Looking at the Litchfield County real estate market from the outside, early 2023 is a highly well-timed moment to invest in property. Whether as a landlord or luxury homeowner, the time is now to invest since all indicators show that home values are rising. Meanwhile, the number of homes listed on the market continues to drop.
The current figure for the median home price in Litchfield in 2023 has fallen slightly since early 2022. However, the average sale price climbed to just over three-quarters of a million dollars in the same period.
Home values are rising consistently during the first quarter of 2023. The number of homes listed in the $750k to $1m range has seen the most interest recently, second only to homes in the $350k range, which tells us that luxury homes in Litchfield are actively popping up on the market all the time. The home inventory has slowed simultaneously, meaning we are squarely in a seller's market as of March 2023.
Reach out to a local real estate expert in the Litchfield, CT area
If you have any questions or comments about the real estate market in Litchfield or the surrounding neighborhoods, don’t hesitate. Get in touch with the Matt Rose Realty Group today for more information!
*Header photo courtesy of Shutterstock
*Header photo courtesy of Shutterstock