Westport Real Estate Market Forecast 2023

Westport, Connecticut, is a lovely town on Connecticut's Gold Coast along the Long Island Sound. This delightful town, with a vibrant downtown scene, fun restaurants, and the famous Westport Book Shop, is a great place to live and raise a family.

Westport is close to endless nature and recreational opportunities, such as Sherwood Island State Park, beautiful beaches, and entertainment gems, including the Westport Country Playhouse and the Levitt Pavilion for the Performing Arts — which offers free outdoor concerts each summer. It is also only about 50 miles from the hustle and bustle of New York City, which means that you can enjoy both the big-city life and the small-town atmosphere if you choose to reside in Westport.

Westport housing market prices and trends

When choosing a place to live, it’s essential to understand the trends in the housing market. First and foremost, Westport is known for its relatively high cost of living, which directly impacts real estate prices. By conducting a thorough assessment of the market, potential residents can gain a realistic understanding of the financial commitment required to secure a home or rental property in this affluent town.

Additionally, the housing market's competitiveness can affect the availability of options and the likelihood of encountering bidding wars —- necessitating a well-informed and proactive approach to property acquisition.

Furthermore, an evaluation of the housing market can provide insights into the town's overall economic stability and property value trends, helping individuals make informed decisions about long-term investments. Finally, understanding the housing market can assist newcomers in aligning their housing needs and preferences with the town's offerings, ensuring a smooth transition and a more satisfying living experience in Westport.

Westport home values and market trends

According to the latest update from the Mid-Fairfield County Association of Realtors, single-family home values in the county have shown a modest increase over the last year, with the median sales price rising from $842,000 to $949,000 — an increase of approximately 12.7%. The number of days on the market has also reduced by 2.5%, while the average amount paid is slightly over the asking price and remains stable.

Zooming into Westport specifically, the median price is much higher than that of Fairfield County, currently sitting at around $2.5 million. Thanks to its stunning beauty, elegant coastal atmosphere, and extravagant homes, there is a high price for luxury here. There is little inventory available priced below $700k. Many condominiums are used as seasonal, short-term rentals rather than being available for purchase or long-term rent. The demand for homes in this desirable community remains consistently high, driven in part by its limited land space, stringent zoning regulations aimed at preserving the town's scenic beauty, and the endless allure of coastal living.

That said, it’s also important to note that Westport and the surrounding area have not been immune to the slowdown in the market that represents a normalization after the pandemic. COVID-19 greatly increased the value of homes in Westport as it became a popular destination for New York workers who wanted to get out of the city. This trend may reverse as more companies ask employees to return to the office. The market slowdown is reflected in the trend of Fairfield County’s reduced pending sales (down by 22.9%), reduced closed sales (decreased by 9.8%), and reduced new listings (down by 30.8%).

In what direction are interest rates going?

The Fed has hiked interest rates several times. Indicators predict that they will keep interest rates steady in September. Because rates have likely already peaked for this cycle, it might be time to wait to sign a new mortgage, as rates are more likely to drop in 2024. However, the economy is currently somewhat unpredictable. The Fed has indicated another hike for 2023 if inflation does not start to come down quickly.

Do investing indicators favor landlords?

With home values increasing steadily, rents are likely to follow. In Westport, most people own their homes, and the rental inventory is competitive. The town's limited land space and zoning regulations that prioritize open spaces and scenic beauty have constrained housing development, resulting in a relatively small rental inventory. Consequently, this scarcity of available units has led to a rise in prices.

Are people moving to Westport?

Westport saw a significant increase in population during the pandemic, but growth has slowed somewhat since then. However, it is a renowned destination for wealthy New Yorkers who are looking for a more suburban lifestyle. Westport has a low-density suburban feel that is hard to find this close to New York City.

In the end, while the Westport real estate market can be highly competitive, Westport's housing values tend to be resilient, and the town's commitment to maintaining its distinctive character ensures that it remains a premier choice for those seeking an idyllic suburban lifestyle with easy access to urban amenities.

A luxury escape from the city

Westport is only 70 minutes by train from New York City. With high home values that are slowly increasing and a housing market that is likely to remain strong and competitive, it's a fantastic choice for people who want to leave New York City to purchase a family home. Excellent schools and easy access to the wonders of nature only increase the allure of this incredible coastal community.

If this sounds like a dream come true, it’s time to team up with a local expert who is up-to-date on the housing market. If you’re interested in searching for a luxury home in Westport or the immediate area, contact real estate professional Fatou Niang today to discuss your needs and find the perfect property. With integrity, attention to detail, and in-depth knowledge of the Westport real estate market, Fatou is more than ready to help you achieve the home of your dreams. Reach out today to begin.

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