2024 Real Estate Forecast for Westport

As we stand at the threshold of a new year, homeowners, prospective buyers, and real estate enthusiasts alike are eager to gain insights into what lies ahead in the dynamic landscape of Westport, Conn. The region has long been a bastion of affluence and charm, drawing residents with its picturesque coastline, vibrant towns, and proximity to New York City. This blog aims to be your guide, offering a detailed 2024 real estate forecast for Westport.

The allure of Westport's real estate market has endured through the years, attracting those seeking a blend of suburban tranquility and proximity to the bustling metropolis of New York City. Throughout 2023, the fundamental factors affecting our housing markets have shown minimal variation. Each quarter has presented a consistent scenario: the persistent combination of historically low inventory and heightened buyer demand continues to shape a competitive buying environment.

Consequently, new listings swiftly transition into contracts, resulting in a limited selection for buyers and maintaining median sale prices well above the levels observed at this time last year. Simultaneously, notably higher mortgage rates impact buyers' purchasing capacity and play a pivotal role in the decision-making process for potential sellers contemplating listing their properties.

In Westport, the high-end market might see a continued slowdown, with buyers adopting a more cautious approach. However, the underlying demand for luxury properties within Westport remains strong, thanks to its unique combination of location, amenities, and prestige. Meanwhile, the lower end of the market, catering to first-time buyers, could see increased activity as interest rates stabilize and affordability concerns moderate.

In 2024, we expect the monthly supply of inventory to fluctuate seasonally. It’s a safe assumption that inventory will peak in spring and will likely level off in September and October before reaching low levels during winter. Depending on your situation, listing in March and April, when inventory levels rise and the market is healthiest.

Year-to-date sales in Westport are down 29% from last year, with just 257 transactions completed entering December 2023.

As you might guess, closed dollar volume is also down through November. Inventory still presents challenges, but our data paints a compelling picture: pending contracts, a key predictor of future sales, have consistently outperformed last year's figures in dollar volume since June (excluding August). September's growth was particularly robust, suggesting a potential sustained trend. Based on this trend, we anticipate significant gains in closed dollar volume throughout Q1 2024.

In Westport, buyers are seeking what they can't find elsewhere. Demand is fueled largely by New York City buyers who want space and flexibility. A surge in remote work and a renewed focus on spacious, comfortable living environments are expected to drive preferences in the real estate market. For sellers, it's a golden opportunity to list and maximize value.

For more than three years, we’ve witnessed a continuous flow of buyers relocating to our suburban communities, whether to find more expansive living environs or to take advantage of the flexibility of remote working. As a possible seller in Westport, by working with a local expert like Leslie Clarke, you can access the latest data and ultimately schedule your sale at the optimal time in 2024.

Get an instant home valuation here.

To stimulate more sellers entering the market, mortgage rates must decrease. Currently, mortgage rates average 7.31%, while over 70% of present homeowners enjoy rates below 4%. Listing properties now may mean trading lower rates for higher ones with a new home purchase. History suggests a 5% mortgage rate is the threshold for action on the part of homeowners. A decline to this level could boost inventory levels, restoring balance to supply and demand.

Positive trends indicate a potential decrease in rates, aligning with inflation fluctuations. Forecasts from Freddie Mac anticipate rates dropping to 6.2% by Q4 2023 and further to 5.3% by Q4 2024, offering optimism for the housing market's turnaround. However, the 2024 election year may pose challenges. Notably, mortgage rates don't universally impact all consumers, with a significant percentage owning homes outright or having substantial equity, making them less sensitive to rate changes.

While 2024 promises to be an intriguing year for Westport real estate, it's essential to think beyond the immediate horizon. The county's economic fundamentals remain strong, boasting a diversified job market, top-notch educational institutions, and a vibrant cultural scene. These factors continue to attract residents and businesses, driving long-term demand for real estate.

For unparalleled insight and expertise in navigating the dynamic real estate landscape of Westport, Conn., there's no better ally than The Leslie Clarke Team. With a commitment to delivering up-to-the-minute information and a deep understanding of the local market trends, Leslie and Jeannette are your go-to resource for all things real estate. Whether buying, selling, or simply seeking the latest updates on property values and market conditions, Leslie and Jeannette bring a wealth of experience and a personalized touch to guide you through the process seamlessly.

Your dream property or successful sale is just a consultation away — connect with The Leslie Clarke Team today for a real estate experience tailored to your unique needs and goals. Search homes for sale in Westport here.