1. The Market Report

 Quarter 3 2026 | Market Report

STEADY DEMAND, SHIFTING PATTERNS: A REGION STILL FINDING ITS BALANCE
As Q3 2026 comes to a close, the story across our region is familiar, with a few new wrinkles worth watching.

Hartford County continues to see steady buyer demand, price appreciation, and competitive multiple-offer activity, fueled by limited supply. Buyers are growing more selective, though – fewer waived inspections, more requests for adjustments before closing. Rising rates haven’t kept buyers on the sidelines, but they’ve changed who’s buying. First-time buyers have taken a backseat for a while now, with the average first-time buyer today over 40.

New York remains Connecticut’s largest feeder market by far, accounting for roughly 40% of buyers moving into the state between September 2025 and September 2026, followed by Rhode Island and Florida (7% each), California (5%), and New Jersey (4%). Over the past three years, more than 2,400 buyers have come to Connecticut from New York alone…a clear signal of the state’s continued draw for those relocating from the city and its suburbs.

Westchester is the one market in our footprint that hasn’t slowed all year. Entering 2026, the median single-family price was $915,000, up 3.4% year over year, with just 1.8 months of inventory and homes routinely selling at 100% of list, per HGAR and OneKey MLS. By late spring, the median had climbed to $999,000, with closed sales up nearly 8% - buyers are absorbing higher prices, not backing away. Homes were selling in about a month, down from 36 days a year earlier. As in Connecticut, competition is fiercest at entry level: homes under $500,000 draw multiple offers within days, while listings above $1 million see more room to negotiate.

The surprise this quarter is Hudson Valley. After a long run as one of the region’s hottest markets, time on market is increasing and buyer activity is softening. It’s still a market with real appeal, but one reaching for balance.

Rhode Island’s momentum carried through summer, even as higher rates dented sales volume. Median single-family price rose 6.1% year over year in Q1 to $493,500, climbing to $529,000 in April (up 10.2%), per R IAR, before easing to $525,000 by July – still a healthy 4% gain, but a sign price growth is moderating. Inventory remains the real story: supply is running at roughly half of what’s considered balanced, keeping upward pressure on prices even as transactions slow. The high end of the market made that clear this summer. A penthouse at Ocean House in Watch Hill sold for $18.5 million, the most expensive condominium sale in Rhode Island history, with our own Bill Hecker representing both the buyer and the seller. The sale underscores that top-tier buyers are still moving, even as broader affordability pressures reshape the rest of the market.

New York City continues to demonstrate remarkable resilience. Record employment, a strong recovery in office leasing, rising residential values, and record Wall Street bonus pools continue to support demand across Manhattan and the surrounding boroughs, reinforcing the city's long-term strength as one of the world's premier real estate markets.

Rhode Island continues to build momentum with improving inventory levels, an active new construction pipeline, and steady buyer demand. Compared to much of our region, buyers have somewhat greater choice while sellers continue to benefit from healthy market conditions.

Connecticut’s luxury segment, particularly Greenwich, continues to defy broader trends. Homes in the $20–30 million range are still drawing multiple offers with little delay, largely cash buyers who see real estate as one of the most trusted assets available. Still, nuance exists even at the top. In Westport, a home listed at $9 million recently sold for $7.5 million – directly across the street from a $50 million listing. Pricing discipline matters, even here.

Demand hasn’t disappeared – it’s becoming more discerning, and in places like Hudson Valley, more cautious. We’ll be watching whether that caution spreads, or whether markets like Hartford County and Westchester continue to defy it.

Berkshire Hathaway HomeServices New England Properties' Monthly and Quarterly Market Reports are available for all Connecticut, Rhode Island, Massachusetts, and Westchester County, New York towns.

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