Above: This stunning six bedroom, five-and-a-half bath estate is located on Three Wells Lane in Darien. Closed for $4,900,000 in 2024 (Lynley Middleberg, William Pitt) Listed by Bruce Baker, William Pitt
Our area continues to be a big draw for buyers wanting luxury homes, charming communities and good schools.
New Canaan:
Properties sold in 2024: 199
Median sales price: $2.261M
Average number of days on the market: 53
Good News for sellers: Median sales price rose by just over 13% from 2023
Darien:
Properties sold in 2024: 194
Median sales price: $1.975M
Average number of days on the market: 32
Good News for sellers: Average number of days on the market decreased to 32 from 39
Rowayton:
Properties sold in 2024: 56
Median sales price $1.975M
Average number of days on the market 47
Good News for sellers: Median sales price rose by over 15% from 2023
New Canaan, Darien and Rowayton all embody a similar idyllic small-town New England feel, so it’s no wonder that living here is almost universally desired. The top-ranking schools and state-championship-winning sports teams in tight-knit communities with close proximity to New York City can’t be beat. From walkable and lively downtowns lined with restaurants and shops to breathtaking waterfront properties, these truly charming lower Fairfield County towns continue to attract a steady flow of buyers year after year. “The market was even stronger in 2024 than 2023,” says Meg Schwanhauser (William Raveis). “Many buyers are adapting to higher interest rates by adjusting their budgets and seeking homes that fit their financial situation, leading to a steady stream of transactions,” Schwanhauser adds. “Inventory is still limited in many areas, homes are often selling quickly and sometimes above asking price, driving competition among buyers. “Overall, the real estate landscape in 2024 was vibrant, showing adaptability and continued investment in homeownership, despite previous challenges faced in the market,” she says.
New Canaan Notable Sales
Record Rates
The move in mortgage rates from the high 2% range to over 7% over the last two years is the single most important factor in our market,” says Doug Milne (Houlihan Lawrence). While mortgage rates have dipped from the recent highs of late 2023, many buyers were left feeling skeptical about this year being the right time to purchase a new home. “Combine this with the limited inventory and it became more and more clear the reductions in interest rates had to happen,” says Terry Lockery (Prosperity Home Mortgage). “While the forecast for 2025 may not be as low as previously thought, the reductions are already leading to some much-needed confidence for buyers that were previously waiting on the sidelines.” Rate volatility also impacts sellers, who become reluctant to list their homes knowing that their new mortgage rates would be significantly higher. However, there is a silver lining for both buyers and sellers. “The chief economist of the National Association of Realtors, Lawrence Yun, has stated that the first slash in the Fed rate is usually a harbinger of more to come, and that six to eight more reductions can be expected over 2025,” explains Lynley Middleberg (William Pitt Sotheby’s International Realty). “This is all good news for the residential real estate industry and leaves us feeling bullish for a healthy market as we near 2025.”
Rental Readiness
Sellers wanting to capitalize on the state of market,but buyers wanting to hold off on finding the right property continued to fuel the rental market and keep things competitive throughout 2024. Schwanhauser says landlords continued to see multiple applications for their properties, so “renters needed to be prepared to make quick decisions and potentially offer stronger applications.” Flexible timelines and a willingness to expand potential location parameters helped renters find success this year. While the rental stats from the last 12 months saw an overall decrease from 2023, the want and need for temporary living continues to be factor in the market.
Selective Sellers
Even in a seller’s market flush with eager buyers, attention to detail prior to listing a home still matters. According to Gillian DePalo (William Raveis), a realtor’s “recipe for luck” involves freshly painted walls, screened hardwood floors, decluttered surfaces and trimmed landscaping. She jokingly adds that it’s “best served Instagram-ready with an expensive, aromatic candle and a sharp price.” While the last 12 months lacked enough inventory to meet demand, the 2025 prediction is that there will be an uptick in listings. “However, that doesn’t mean we are expecting pre-pandemic ‘normalcy,’ but rather a continuation of the past few years and an increase from 202,” says Middleberg. “The election is over, rates are beginning to decrease and people have come to grips with this new normal and are no longer in a ‘wait and see’ pattern with regard to listing their home.”
Budgets to Build
A notable trend seen throughout 2024 was a drastic increase in new construction with number of new builds almost doubling. “Because of the lack of inventory, properties that only builders would have previously been competing for (i.e. houses that are in disrepair, or in what previously would be considered less than prime locations), are now being pursued and purchased by end users and renovated and/or expanded,” says Cathy Thomas (Houlihan Lawrence). “Additionally, the inflated cost of building materials experienced during COVID has stabilized but is still nowhere near pre-COVID numbers.” Renovations have also skyrocketed, even amidst record-breaking supply cost increases. Once potential buyers, many homeowners who were happy with their location but just wanted more space opted to add on to their current properties.
Bustling Buyers
Properties once again drew in multiple cash offers this year,
often with mortgage and inspection contingencies waived. Many buyers needed to be prepared to look at listings below their original budgets so that they had more negotiating power when it came time to make a bid. Some buyer preferences mirrored trends from last year: walkability to town, bright in-home work spaces and indoor/outdoor living with outdoor TVs, plunge pools and firepits. DePalo also noticed custom Murphy Beds are becoming an interesting new trend for wishlists, as buyers try to create flex-space with rooms that serve as offices by day and bedrooms by night. DePalo also notes that entertaining at home continues to be a priority for buyers, with tricked out wet and dry bars, both inside and outside, trending in 2024. “Stagers even went so far as to create happy hour vibes with negroni and espresso martini bars in listings, she says.
Darien Notable Sales
Rowayton Notable Sales
Twelve-Month Trends
Overall, the 2023 and 2024 markets were eerily similar,” says Amanda Spatola (Houlihan Lawrence). “Prices continued to rise, and any good piece of inventory was greeted with multiple offers.” A constant flurry of motivated cash buyers, limited listings and rising rates set the tone early in the year and the theme continued for the next 12 months. “The balance between supply and demand was heavily tipped in the favor of sellers,” says Middleberg. “Competition among buyers is one element that continues to elevate median sale price—compared to the same time last year, 12-month median single family home sale prices at the end of the third quarter of 2024 rose in Fairfield County by 10%, and more specifically in Darien by 7%.”
The current generation of buyers fueling the market seeking new or upgraded homes has more cash available than those of the past and thus sale prices continued to shock agents. Whether that will continue through 2025, only time will tell.