New Canaan, CT February 2025 Real Estate Market Report: Insights & Forecast
Assembled by: Judy Michaelis, 203-247-5000
Market Trends Report
Overview
The overview below shows real estate activity for January 2025. You will see data comparisons between January and the previous month, the last three months and January 2024.
| Overview | YTD Avg. | January | December | Oct. – Dec. | Jan. 2024 |
|---|---|---|---|---|---|
| New Listings | 20 | 20 | 5 | 11 | 16 |
| Average Sales Price per Square Foot | 550 | 550 | 645 | 564 | 565 |
| Average Days on Market | 84 | 84 | 56 | 59 | 131 |
| Number of Properties for Sale | 39 | 39 | 40 | 53 | 51 |
| Average List Price | $4,863,692 | $4,863,692 | $4,484,025 | $4,226,262 | $3,920,431 |
| Median List Price | $3,999,000 | $3,999,000 | $3,760,000 | $3,542,500 | $3,495,000 |
| Average Sales Price | $2,333,294 | $2,333,294 | $2,211,167 | $2,539,080 | $2,488,357 |
| Median Sales Price | $1,660,000 | $1,660,000 | $1,600,000 | $2,158,000 | $1,895,000 |
| Sales Price / List Price Ratio | 97.91% | 97.91% | 106% | 104.3% | 96.72% |
| Number of Properties Sold | 17 | 17 | 15 | 15 | 14 |
| Month’s Supply of Inventory | 2.29 | 2.29 | 2.67 | 3.64 | 3.64 |
| Absorption Rate | 0.44 | 0.44 | 0.38 | 0.3 | 0.27 |
Average & Median Sales Price
The median sales price in January 2025 was $1,660,000, up 3.75% from $1,600,000 from the previous month and -12.40% lower than $1,895,000 from January 2024. The January 2025 median sales price was at a mid level compared to January 2024 and 2023.
The average sales price in January 2025 was $2,333,294, up 5.52% from $2,211,167 from the previous month and -6.23% lower than $2,488,357 from January 2024. The January 2025 average sale price was at a mid level compared to January 2024 and 2023.
Sales Price / List Price Ratio
The sales price/list price ratio is the average sale price divided by the average list price for sold properties expressed as a percentage. If it is above 100%, homes are selling for more than the list price. If it is less than 100%, homes are selling for less than the list price.
The January 2025 sales price/list price ratio was 97.91%, down from 106% from the previous month and up from 96.72% from January 2024.
Number of Properties Sold & Absorption Rate
The number of properties sold in January 2025 was 17, up 13.33% from 15 from the previous month and 21.43% higher than 14 from January 2024. The January 2025 sales were at its highest level compared to January 2024 and 2023.
Absorption rate is the avg number of sales per month divided by the total number of available properties.
Average Days on Market
The average days on market (DOM) is the number of days a property is on the market before it sells. An upward trend in DOM tends to indicate a move towards a buyer’s market, a downward trend tends to indicate a move towards seller’s market.
The DOM for January 2025 was 84 days, up 50.0% from 56 days from the previous month and -35.88% lower than 131 days from January 2024. The January 2025 DOM was at a mid level compared with January 2024 and 2023.
Average Sales Price per Square Foot
The average sales price per square foot is a more normalized indicator for the direction of property value. The sales price per square foot in January 2025 was $550, down -14.73% from $645 from the previous month and -2.65% lower than $565 from January 2024.
Inventory & MSI
The number of properties for sale in January 2025 was 39, down -2.50% from 40 from the previous month and -23.53% lower than 51 from January 2024. The January 2025 inventory was at its lowest level compared with January 2024 and 2023.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The January 2025 MSI of 2.29 months was at its lowest level compared with January 2024 and 2023.
New Listings
The number of new listings in January 2025 was 20, up 300% from 5 from the previous month and 25.00% higher than 16 from January 2024. The January 2025 listings were at a mid level compared to January 2024 and 2023.
Judy Michaelis
Prefer the quick version? Here's a snapshot of the January 2025 New Canaan Market Update:
🏠 Home prices showed mixed signals – Median sales price reached $1.66M, up modestly 4% from December's $1.6M but down 12% from last year's $1.9M. Average sales price was $2.33M, up 6% monthly but down 6% annually, suggesting a more balanced pricing environment.
⏰ Homes are taking longer to sell – Average days on market jumped to 84 days, up 50% from December's quick 56 days, though still significantly better than last year's sluggish 131 days. The market pace has cooled from the December rush but remains healthier than a year ago.
📈 Inventory remains historically tight – Only 39 homes for sale, virtually unchanged from December's 40 but down 24% from last year's 51. The ultra-low 2.29-month supply continues to favor sellers, representing the lowest inventory levels compared to recent years.
📊 Sales activity strengthened notably – 17 homes closed in January, up 13% from December's 15 and up 21% from last year's 14. New listings surged 300% to 20 from December's anemic 5, providing much-needed fresh inventory to start the year.
What Buyers and Sellers Need to Know
✨ Sellers: While homes are taking longer to sell than December's frenzied pace, you still benefit from extremely low inventory and strong absorption rates. The 2.29-month supply heavily favors sellers, though pricing discipline will be important as homes are selling slightly below list price (98%).
🔍 Buyers: This represents your best opportunity in months. With more listings coming to market and homes spending more time available, you have better selection and negotiating power. The market has shifted from the December seller frenzy to a more balanced dynamic, giving you time to be thoughtful in your search.
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