What is the Average Home Appreciation in Connecticut?

For prospective buyers, sellers, and homeowners in Ridgefield and across Connecticut, one of the most common questions is: what is the average home appreciation in Connecticut? 

In other words, how much can you expect home values to grow annually in the Nutmeg State? 

While average home appreciation is never guaranteed, understanding historical trends, current market data, and regional differences can help you make smarter real estate decisions.

Understanding Home Appreciation

Home appreciation refers to the increase in a property’s value over time. 

Average home appreciation typically refers to the annualized percentage increase in home prices or indices. 

A steady, positive appreciation is generally a good sign for long-term homeowners and real estate investors.

Average annual home appreciation nationwide has been about 6–7% over the past decade and 8–9% in the last five years. Historically, it averaged around 3.4% before inflation (about 0.5% after). As of early 2025, appreciation slowed to 4.7% year over year, though rates vary widely by state and metro area.

Appreciation isn’t uniform and depends heavily on location, property type, condition, market factors, and broader economic trends. Average home appreciation in Connecticut will differ from other states, and statewide averages will vary based on town and neighborhood. 

Historical and Recent Trends in Connecticut

The Federal Reserve’s All-Transactions House Price Index for Connecticut, which tracks home price changes over many decades, shows that Connecticut home values have risen over time, though with fluctuations during downturns. (FRED) 

Historically, Connecticut’s home appreciation has followed national trends, though often at a slightly slower pace.

Consider these recent annual appreciation rate:

In the past few years, Connecticut has experienced stronger than average growth in many markets:

  • According to Redfin, in August 2025 home prices in Connecticut were up 4.5% year over year. (Redfin) 
  • Zillow reports that the average home value is about $430,086 currently, reflecting a 3.9% increase over the past year. (Zillow) 
  • In Q1 2024, Connecticut saw nearly 10% year-over-year growth, putting it among the states with the highest appreciation. (CT Mirror) 
  • For context, one source claims Connecticut had the 7th highest appreciation in the U.S. in 2024, with an average of ~10% year over year. (CT Cash Homes)

Home appreciation is projected to stabilize at 3-6% after recent surges caused by low inventory, high demand, and accessible lending.

What Drives Appreciation in Connecticut?

Here are some key factors in understanding why Connecticut sees these rates (and why they vary):

Supply and Inventory Constraints: Limited new construction in many areas of Connecticut, due to factors like zoning, land availability, and regulations, contributes to rising prices when supply is low and demand is consistent.

Desirable Locations & Commuter Access: Fairfield County towns like New Canaan, Westport, and Ridgefield provide unparalleled factors such as close proximity to major metropolitan areas like New York City, award-winning school systems, and a high quality of life. In such places, appreciation often outpaces the state average.

Interest Rates & Financing Trends: Historically, lower mortgage rates have fueled buyer demand, leading to price increases. Conversely, higher rates can impede growth.

Local Economic Strength: Employment growth, income levels, and demographic trends such as people relocating to CT also play a role.

Market Sentiment & Investor Activity: Optimistic market sentiment often leads to an influx of buyers, which can result in bidding wars and a faster rate of appreciation.

What Does the Average Home Appreciation Look Like for Ridgefield & Fairfield County?

While statewide averages offer some insight, localized data provides a more accurate representation for CT homeowners and prospective buyers. Fairfield County and Connecticut’s southwestern corridor typically experience greater home appreciation due to commuter demand and higher home values.

Should Connecticut’s average annual appreciation be between 4-10%, towns such as Ridgefield may see appreciation rates at the higher end of this spectrum. This would depend on specific property attributes and the dynamics of the neighborhood.

When asking “What is the average home appreciation in Connecticut?” in Fairfield County, you might reasonably expect 5–8% in strong years, though more modest years (3–5%) should also be anticipated.

Why Average Home Appreciation Matters for Buyers, Sellers & Homeowners

For buyers, understanding appreciation allows you to project future equity growth. Purchasing a home today with values appreciating 4–5% annually could lead to notable gains over a 5- or 10-year period. However, it’s important to remember that markets ebb and flow, so extreme spikes in value shouldn’t be expected every year.

If you’ve owned your home for several years, the cumulative effect of appreciation can translate into significant equity. That’s why many sellers see favorable returns when timing their sale with strong market cycles.

And, if you own, but don’t plan to sell soon, rising home values can provide opportunities such as tapping into your equity (via refinances or home equity lines) or simply building lasting wealth.

What to Watch in the Future as it Relates to Average Home Appreciation

When estimating future appreciation in Connecticut, keep an eye on:

  • Mortgage interest rates, which  can dampen demand 
  • Housing inventory and building permits 
  • Economic indicators like employment, wage growth, migration patterns 
  • Local infrastructure and development projects 
  • Policy changes affecting property taxes, zoning, and lending

These factors could temper appreciation, bringing it closer to a “steady state” of 3-6% rather than significant double-digit increases.

In Summary: What Is the Average Home Appreciation in Connecticut?

For the Ridgefield area and Fairfield County, appreciation may trend toward the higher end of the state average. Connecticut’s home appreciation generally follows national trends, with recent annual appreciation between 4-10%, varying by location. Ridgefield and Fairfield County may see appreciation at the higher end of this range.

In more normalized years, 3–6% annual growth is a reasonable assumption but ultimately, your home’s appreciation will hinge on local conditions, timing, and property quality.

Learn More About Average Home Appreciation & The CT Real Estate Market 

Contact Karla Murtaugh and her team to learn about Connecticut home appreciation and the local real estate market. 

As leading real estate experts in Ridgefield and the surrounding area, they offer market knowledge and personalized guidance for buying, selling, or exploring your home’s value.

2024 Market Report

Curious about what’s happening in the real estate market? We’re happy to release our 2024 Market Report and would love to discuss it with you if you have questions. Why partner with us? You’re in the best hands with the Karla Murtaugh Homes Team. We’re proud to announce, Karla is the #1 agent in Ridgefield and the team has been named the #1 Small Team in Connecticut by Real Trends/WSJ – 2023. Compass has been named the #1 Real Estate Brokerage in the U.S. by sales volume for the 3rd year in a row.
The Summer Market is moving. Robust demand continues to underscore the town’s enduring appeal to potential buyers. At Karla Murtaugh Homes, we recognize the significance of your hoMme as a valuable asset. It’s not too late to jump into the market. Inventory has picked up in June and we expect this to continue to at least the end of the year. Whether you’re buying or selling, we encourage you to strive for nothing less than exceptional. Partner with us for a successful outcome tailored to your needs.
For the full Market Report please click here.

Mid-Year Market Report 2024

Curious about what’s happening in the real estate market? We’re happy to release our Mid-Year Market Report and would love to discuss it with you if you have questions. Why partner with us? You’re in the best hands with the Karla Murtaugh Homes Team. We’re proud to announce, Karla is the #1 agent in Ridgefield and the team has been named the #1 Small Team in Connecticut by Real Trends/WSJ – 2023. Compass has been named the #1 Real Estate Brokerage in the U.S. by sales volume for the 3rd year in a row.
The Summer Market is moving. Robust demand continues to underscore the town’s enduring appeal to potential buyers. At Karla Murtaugh Homes, we recognize the significance of your hoMme as a valuable asset. It’s not too late to jump into the market. Inventory has picked up in June and we expect this to continue to at least the end of the year. Whether you’re buying or selling, we encourage you to strive for nothing less than exceptional. Partner with us for a successful outcome tailored to your needs.
For the full Market Report please click here.

November – Inventory Continues To Be The Biggest Hurdle To Sales, Prices Holding Steady

As we approach the end of 2022, it has proven to be another strong year in residential real estate. Since mid-2020 we have seen home prices elevate at an exceptional rate due to the pandemic, but now the surge is over. We have seen a seasonality return to the real estate market, which bodes well for the typically busy Spring market and the main concern going into 2023 continues to be the lack of available housing inventory. The outlook of most economists is that we may see the market return to a more balanced buyer/seller dynamic in 2023.

In November 2022 there were 21 single family homes that sold in Ridgefield compared to 29 the year before. Year to date, total sales are down 23% from 453 in 2021 to 348 this year. Overall sales volume is also down 20% year over year, but median and average pricing is still elevated.

Year to date, the median sales price is up from $817,000 in 2021 to $875,032 in 2022. This represents a 7% jump over last year. The average sales price was $986,003 year to date in 2022 compared to $943,631 in 2021 – a 5% jump. With fewer houses on the market, many qualified buyers still looking despite increased mortgage rates, and prices holding steady, all factors point to a good time to sell.

It’s also important to assess how the market is doing in retrospect back to 2019 pre-pandemic times. Sales and values are up across the board from 2019 even as the market is slowing. For a snapshot of how they compare, scroll through the images on this page.

The demand caused by the influx of buyers to our local area, coupled with exceptionally low mortgage rates created a perfect storm in 2020 and 2021. The resulting ability to work from home either hybrid or full-time continues to benefit desirable towns such as Ridgefield, which offer a sophisticated, suburban lifestyle & award-winning schools.

To see a snapshot of how all Fairfield County towns fared in November, check out the comprehensive Compass market report here.

 

 

 

Ridgefield Q3 2022 Real Estate Market Report

The year-to-date Ridgefield real estate market is a mixed bag of results due to a lack of inventory. While we had a strong third quarter, the number of sales – and as a result – the overall sales volume, was down 24% and 19% respectively over the same time in 2021. However, the good news is that prices are holding steady. The median and average sales prices are still up 6% over the same period in 2021 and up 30% from 2020. While this is encouraging, the lack of inventory plus rising interest rates are starting to create a slight slowdown. For sellers, now is a great time to put your home on the market. For buyers, while interest rates may be elevated over the same time last year, they are still historically low, so it is still a great time to buy. Overall, we hope to see the seasonality remain in the market. The balance is already returning with buyers & sellers equally negotiating to create a favorable environment for their sale.

QUICK FACTS

-24%
Decrease YTD in SFH sales from 393 in 2021 to 300 in 2022

-19%
Overall sales volume decreased due to the drop in sales

102%
List to sales price ratio reflected over-asking offers

+6%
Median sales price YTD increased from $825,000 to $875,000

+6%
Average sales price YTD increased from $931,726 to $987,920

Ridgefield 2022 Mid-Year Market Report

RIDGEFIELD MARKET SNAPSHOT
The first of half of 2022 saw the market slow from a frantic scramble to a more manageable, but still in-demand pace. The number of sales and total sales volume were down significantly, while the median and average sales prices rose a few percent over the same time in 2021. Inventory continues to be a challenge and is sitting at 3 months, which is the same as in 2021. There are still plenty of buyers ready to purchase homes that are priced properly and in good condition, and the median days on market in the first half of the year was 30 days compared to 48 last year. Homes are selling at 103% of list price as well.

LOOKING AHEAD
Sellers seemed hesitant to jump into the market in the early days of 2022 and inventory was a real challenge throughout the first couple of months. However, with interest rates remaining historically low, we started to see seller confidence climb again and buyers were quick to jump on properties that offered amenities, location, and updates. Multiple offer situations were common but have slowed slightly as
we move into the traditionally slower summer months of Q3. Prices are holding firm even in the face of rising inflation concerns and increasing interest rates. The luxury market continues to do well with investors taking refuge in the real estate market, even as the stock market continues with volatility. Inventory levels are still at historic lows with only 3 months of inventory currently available, which is good news for those looking to sell. There’s also good news for buyers as the market seems to be becoming more balanced and less frenzied offering a return to a more traditional pattern of purchasing with mortgage, appraisal and inspection contingencies.

THE LUXURY MARKET
The luxury market – billed as sales over $1.5 million – continued to dominate over past years. There were 16 luxury sales in the first half of the year, compared with 22 in the first half of 2021. As a percentage of total sales this represents
a 1% increase over 2021, and a 5% increase over 2019 (our last ‘non-covid’ real estate market). We also just closed the highest priced sale to date of spectacular ‘Hilltop Estate’ for $4.4 million.

DOWNLOAD THE FULL REPORT

Wilton Q1 2022 Market Report

The Wilton real estate market continues to take advantage of the current surge. While inventory and the number of sales are typically lower in Wilton than in Ridgefield, the town has enjoyed an earlier resurgence of inventory particularly in the over $1 million range. This has led to higher median and average sales prices than in Q1 2021. For example, 52% of all property sales in Wilton in Q1 2022 have been for homes priced in the $1 million and over range compared to only 26% in Q1 2021. In addition, there have been twice the number of luxury properties (homes selling for more than $1.5 million) in 2022 compared to 2021, with 20% of all sales being in this price point. This noticeable surge in luxury sales has definitely influenced the median and average sales prices in the town. The number of sales in Wilton has also decreased as in Ridgefield, but is still slightly higher than the pre-pandemic numbers. As we move into the typically fast-paced spring market, it will be interesting to see if supply can keep up with demand.

Ridgefield Q1 2022 Market Report

Overall, the Ridgefield real estate market for single family homes was healthy in the first quarter of 2022. While the main issue affecting the number of sales was low inventory, we have started to see an uptick in homes coming on the market, particularly in late March. There are still many buyers searching for homes, and sellers are getting creative with rent backs and other tools while they sell and make their next move. It is also important to note that while values seemed to show a decrease from last year, that is almost entirely due to the breakdown of homes that are selling. For example, in Q1 2021, homes in the over $1 million category made up 33% of all sales, while in 2022 they were only 29% of total market share. In addition, the luxury market (homes selling for greater than $1.5 million) accounted for 12% of all sales in Q1 2021, compared to only 6% this year. The drop in the share of homes selling in these price points has an overall negative effect on both median and average sales prices as reflected in these statistics. This is nothing to be concerned about as the number of sales equals or exceeds our more normal markets of 2018-2020, and the median sales values are up compared to those years as well.

Ridgefield Market Continues To Out Perform

Overall, Ridgefield single family homes sales in February were reduced compared to 2020 and 2021 due to a lack of inventory. Only 12 homes sold this past month, with a Median Sales Price of $646,000 and an Average Sales Price of $796,875. However, it is important to evaluate these numbers as part of a bigger picture, and not in a bubble. In reality, there are plenty of qualified buyers still looking to purchase, but there is a relatively small selection of homes for them to choose from!

When comparing year-to-date sales, a picture emerges reflecting a strong market with all the markings of an exceptional year if sellers choose to list their homes for sale.  The Median Days On Market for January and February 2022 was 62 days compared to 65 in 2021, 105 in 2020 and 79 in 2019. In general, homes are spending almost no time on market, often selling with multiple offers within the first few days. The Sales to List Price Ratio reflects this trend with the current ratio sitting at 100.7%, while 2021 was 99.4%, 2020 at 95.5%, and 2019 at 94.3%.  Again, inventory is the biggest challenge. Currently there are only 3 months of inventory on the market, compared to 3 months in 2021, 10 months in 2020 and 14 months in 2019!

Pricing is also interesting due to this lack of inventory. There were many more sales in lower price points than in the luxury market, resulting in January and February 2022 showing large price decreases from both 2021 and 2020. The Median Sales Price YTD is $723,750, a 15% decrease from 2021, but a 32% increase from pre-pandemic 2019 values.  The Average Sales Price tells a similar story decreasing 10% from 2021 to $829,143 but remaining 12% higher than prices in 2019. Perhaps the biggest decrease is seen in the 34% drop in the number of homes sold when compared to the same time in 2021, but a 55% increase over 2019.

The overarching message here is that the Ridgefield real estate market is extremely healthy and is simply waiting for an influx of properties to be listed. Spring is traditionally the strongest time to list a home for sale and we are seeing an uptick in interest from potential sellers here and in surrounding lower Fairfield County towns. In my expert opinion there is no time better than the present to sell your home.

If you would like to have a more in-depth conversation about your home’s value, connect with us today. Karla Murtaugh 203-856-5534 or karla.murtaugh@compass.com.