Connecticut's southern shoreline isn't the only place where home prices are climbing. Further inland toward Hartford, prices have been inching up all summer, and August was no exception.
The median sales price in the capital city grew from $413,250 in August 2024 to $446,000 last month — a 7.9% jump, according to the Greater Hartford Association of Realtors, which also tracks homebuying activity in the city for condominiums. The number of single-family homes on the market rose from 726 in August 2024 to 766 last month — a 5.8% jump, the real estate agents' group said in its recent market report. Typically, in a local housing market, more inventory helps drive down prices for buyers, but that wasn't the case last month.
Holly Callanan, the group's CEO, said one reason might explain why home prices spiked.
"Home prices in Greater Hartford increased, even though more houses were for sale," she said in a statement. "That may mean buyers are competing for well-priced or move-in-ready homes, which would drive up prices."
Prices may be rising, but "Hartford actually appears more affordable than the United States as a whole," Jared Koeck, an associate director of market analytics at Homes.com who studies Hartford, said in an interview.
Koeck noted that the national median home price was $389,000 in August, according to Homes.com data, while the U.S. median income was $81,488, according to Oxford Economics, meaning the national housing affordability gap was 37%.
"In Hartford, that gap is only 28%, as the median home price is $402,250, while the median income is $96,741," he said.
More inventory is welcome news as the state grapples with a severe housing crunch. Connecticut's population has grown steadily in recent years, but homebuilders have not finished enough homes, fueling demand and pushing up prices in places such as Hartford and Greenwich.
The housing shortage stems from "a pattern of chronic underproduction spanning decades," according to a May study from the nonprofit Connecticut Business and Industry Association. The state is facing a shortage of 100,000 to 150,000 units, the CBIA said.
Despite the shortage, there are dozens of homes currently for sale in Hartford — including a two-bedroom Colonial in the South West neighborhood for $275,000, a two-bedroom bungalow in the South End neighborhood for $239,900 and a six-bedroom English cottage-style home for $949,900.
The number of closed home sales for Hartford fell from 506 in August 2024 to 566 last month — a 10.6% dip, according to the market report. Pending sales grew 1.3% year over year in August from 459 to 465. Days on market for Hartford grew from 12 to 16 year over year in August.
The group's report also found that the median sales price for condo units rose 1.5% from $295,000 in August 2024 to $299,500 last month. Inventory climbed 38.6% year over year in August from 153 to 212, while new listings grew 32.5% from 123 to 163. Days on market for condos decreased by a day from 15 to 14 year over year in August.
The number of closed condo sales grew 13.9% year over year in August, from 137 to 156, while pending sales rose 25.4% from 114 to 143.