Like any great negotiation, real estate is rarely won by brute force. It’s a dance—one where timing, preparation, and adaptability separate those who make the right moves from those who watch opportunities slip away. February’s market data tells us that while the music is still playing, the tempo is shifting.
For sellers, scarcity continues to work in your favor, but buyers are becoming more selective. For buyers, decisive action remains your best advantage, but patience in the right moments can yield opportunities.
The Story the Data Tells Us
As we step further into 2025, three key market forces define Fairfield County’s luxury real estate landscape:
1. Sellers Still Hold the Leverage—Particularly when Positioned Wisely
Across all luxury markets, median sales prices surged +29.3% year-over-year. While this signals strong demand, the sales-to-list price ratio declined from 101.7% to 99.0%. This suggests that buyers are less willing than they were at this time last year to stretch beyond asking prices.
Despite this overall trend, our sellers continue to get more money for their listings, with an average sales-to-list price ratio of 106%, year to date.
The takeaway: If you’re a seller, market conditions are working in your favor, but only if you price and present your home strategically. Overconfidence can lead to stagnation.
2. Inventory is Still the Bottleneck
New listings declined -23.4% compared to last year, meaning fewer homes are available for buyers who are actively searching. Meanwhile, the number of properties sold increased by +20.5%, confirming that buyers remain engaged and ready to act—but with fewer options.
One concern we’ve heard from potential sellers – where do I go if I sell? It’s a trickier solution but not an intractable one. We’ve been able to help our clients find solutions through off-market opportunities, temporary rental solutions, and by negotiating the strongest offers for homes on the market. It’s why aligning yourself with a well-connected agent is more important than ever.
The takeaway: If you’re a seller, your competition remains low. You’re in a great position to maximize your property’s value. If you’re a buyer, expect continued competition - but recognize that not all homes require you to overpay. With the right advice, there are still great opportunities to be had.
3. Days on Market is Increasing—Understand what this Actually Signals
The average days on market increased, rising from 66 to 77 days. Rather than jump to conclusions that the market is slowing, we view this as a signal of transition. Buyers are taking more time to make an important decision. They are considering their options carefully, and in some cases, waiting for price adjustments. This is a normal part of any market cycle. It’s unreasonable for homes to move at breakneck speed forever.
The takeaway: For sellers, a shift like this means pricing accuracy and home presentation are more important than ever. For buyers, it means opportunities may arise for those who remain patient and well-prepared.
Advice for Sellers:
Think of your home like a sought-after event ticket. If priced right and positioned well, buyers will snap it up. If you overprice it—mistakenly assuming that demand alone will carry the day—you risk watching your property sit unsold while buyers choose other options.
If you’re considering selling in in the next 1-2 months:
- List while inventory remains low (-23.4%). Fewer competing listings mean buyers have limited choices, increasing your leverage.
- Don’t overreach on price. Buyers are still paying top dollar, but the drop in the sales-to-list ratio (-2.7%) means they’re less likely to engage in bidding wars. We intentionally price our homes to attract the greatest number of buyers. It’s helped our clients exceed the market sales-to-list ratio by 7%.
- Preparation is key. Well-staged, move-in-ready homes still command strong offers. Homes that appear outdated or need work are now facing longer market times.
Advice for Buyers:
Buying in this market is like trying to book the best room at a high-demand hotel. If you wait too long, the best options will be gone. But if you’re informed and act decisively, you can still secure something great—often before others even realize it’s available.
If you’re planning to buy in the next 1-2 months:
- Be ready to act when the right home hits the market. The number of properties sold increased by +20.5%, proving that demand is still strong.
- Avoid the trap of waiting for a market shift that may never come. Prices may adjust in certain pockets, but inventory constraints will keep overall demand strong.
- Look beyond on-market listings. Off-market opportunities and pre-market listings are becoming a larger part of the conversation.
Don’t wait for interest rates to fall. They may – but it will only increase your competition as more buyers, particularly those waiting for a “magic number” enter the mix.
The Big Picture
Nationally, the market is shifting to a buyer’s market but don’t let the headlines mislead you. The Northeast remains a strong seller’s market. Particularly in Fairfield County, we sit amid a market of measured movement—one where strategy and preparation make all the difference.
This pertains to both buyers and sellers. Sellers who recognize that pricing precision matters more than ever will succeed. Buyers who understand that acting decisively, while remaining patient where needed, will yield the best opportunities.
If you’re considering a move this spring, now is the time to strategize. Whether you’re buying or selling, the best decisions aren’t made in the moment—they’re prepared for well in advance.
We’re here to help.
