New Canaan, CT March 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 from January 2025 to February 2025. You will see data comparisons between February and the previous month, the last three months and February 2024.
| Overview | YTD Avg. | February | January | Nov. – Jan. | Feb. 2024 |
|---|---|---|---|---|---|
| New Listings | 35 | 13 | 22 | 12 | 19 |
| Average Sales Price per Square Foot | 543 | 535 | 550 | 575 | 444 |
| Average Days on Market | 68 | 52 | 84 | 67 | 110 |
| Number of Properties for Sale | 79 | 38 | 41 | 44 | 54 |
| Average List Price | $4,760,836 | $4,810,500 | $4,711,171 | $4,435,235 | $4,038,037 |
| Median List Price | $3,983,750 | $3,972,500 | $3,995,000 | $3,692,500 | $3,897,500 |
| Average Sales Price | $2,862,362 | $3,391,429 | $2,333,294 | $2,508,337 | $2,651,667 |
| Median Sales Price | $2,280,000 | $2,900,000 | $1,660,000 | $1,995,000 | $2,525,000 |
| Sales Price / List Price Ratio | 98.64% | 99.38% | 97.91% | 102.05% | 93.94% |
| Number of Properties Sold | 24 | 7 | 17 | 14 | 6 |
| Month’s Supply of Inventory | 3.92 | 5.43 | 2.41 | 3.36 | 9 |
| Absorption Rate | 0.3 | 0.18 | 0.41 | 0.33 | 0.11 |
Average & Median Sales Price
The median sales price in February 2025 was $2,900,000, up 74.70% from $1,660,000 from the previous month and 14.85% higher than $2,525,000 from February 2024. The February 2025 median sales price was at its highest level compared to February 2024 and 2023.
The average sales price in February 2025 was $3,391,429, up 45.35% from $2,333,294 from the previous month and 27.90% higher than $2,651,667 from February 2024. The February 2025 average sale price was at its highest level compared to February 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 February 2025 sales price/list price ratio was 99.38%, up from 97.91% from the previous month and up from 93.94% from February 2024.
Number of Properties Sold & Absorption Rate
The number of properties sold in February 2025 was 7, down -58.82% from 17 from the previous month and 16.67% higher than 6 from February 2024. The February 2025 sales were at a mid level compared to February 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 February 2025 was 52 days, down -38.10% from 84 days from the previous month and -52.73% lower than 110 days from February 2024. The February 2025 DOM was at its lowest level compared with February 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 February 2025 was $535, down -2.73% from $550 from the previous month and 20.50% higher than $444 from February 2024.
Inventory & MSI
The number of properties for sale in February 2025 was 38, down -7.32% from 41 from the previous month and -29.63% lower than 54 from February 2024. The February 2025 inventory was at its lowest level compared with February 2024 and 2023.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The February 2025 MSI of 5.43 months was at its lowest level compared with February 2024 and 2023.
New Listings
The number of new listings in February 2025 was 13, down -40.91% from 22 from the previous month and -31.58% lower than 19 from February 2024. The February 2025 listings were at its lowest level compared to February 2024 and 2023.
Judy Michaelis
Prefer the quick version? Here's a snapshot of the February 2025 New Canaan Market Update:
🏠 Home prices surged dramatically – Median sales price jumped to $2.9M, up a remarkable 75% from January's $1.66M and 15% higher than last year's $2.53M. This represents the highest February prices on record for the area.
⏰ Homes are selling much faster – Average days on market dropped to 52 days, down 38% from January's 84 days and an impressive 53% lower than last year's 110 days. The market is clearly accelerating toward sellers.
📈 Inventory continues tightening – Only 38 homes for sale, down 7% from January's 41 and down 30% from last year's 54. The supply shortage is becoming more pronounced in this premium market.
📊 Sales activity slowed significantly – Just 7 homes closed in February, down 59% from January's 17 sales, though still above last year's 6. Low inventory is clearly constraining transaction volume.
What Buyers and Sellers Need to Know
✨ Sellers: The market is moving in your favor with homes selling at essentially asking price (99.4% of list) and spending much less time on market. The dramatic price increases suggest strong underlying demand despite limited inventory.
🔍 Buyers: Act quickly when you find the right property. With homes selling near asking price and moving faster than in recent months, competition is intensifying. The 5.4-month supply indicates a balanced to slightly seller-favoring market, so be prepared to move decisively.
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