BuyersSellersWestport CT February 22, 2022

2021 Rewind: A Look Back at the Westport Real Estate Market

Low inventory and high prices took centerstage in 2021 — here’s everything you need to know.

Houses in Westport, CT underwent some market changes in the last year. For 2021, the national market trends seemed to apply to Westport homes as well as other luxury destinations around the country. Like the rest of the country’s housing market, houses in Westport saw an increase in price, a decrease in properties for sale, and a higher-than-average turnover rate for properties on the market.

Here’s a look back at the market for Westport homes in 2021.

Fewer sellers

It seems the national housing demand also applies to houses in Westport. In the Westport housing market alone, fewer than forty homes were sold this past year — down by more than 25% from the average year to year. We can expect this trend to hold and for people to hold on to their Westport homes. On the other hand, the homes that did sell only stayed on the market for just a few weeks, or an average of forty days.

This means if you’re looking for houses in Westport, you may want to keep your ear to the ground. If fewer people are selling their Westport homes, it may be time to check your investment opportunities in the area.

Higher prices

It seems that higher housing costs are a trend that will also continue. Westport homes for sale were up in price more than 25% last year, a trend we’re seeing all over the nation, but especially in luxury home destinations. Westport homes sold at median prices of $1,450,000 to $3,370,500 last year, and we expect housing prices to stay the same or possibly drop a bit with other market considerations.

Low inventory

Due to the COVID-19 pandemic and work-from-home opportunities afforded by most employers in the last couple of years, more people have been buying up available real estate. Expanding or upgrading homes has become its own real estate trend since 2020. Combine this trend with the housing shortage we’ve been experiencing since the recession of 2008, and we predict there will be fewer destination homes all over the country.

Therefore, if you’re looking for houses in Westport, CT, it wouldn’t be a bad idea to contact an experienced local agent and start looking for Westport homes in a serious fashion. Locals can help you with area considerations and keep an eye open for available properties for you. Considering the fact that there are fewer houses in Westport on the market — and that they’re staying on the market for only a couple of weeks — it would be a good idea to get your foot in the door as soon as possible.

Another trend we’re seeing all over the country, including with houses in Westport, is the shortage of housing available. New construction has been at an all-time low since 2008, and a new generation of homebuyers is entering the market, so we expect that prices and demand will stay high. With more demand than supply, the market will likely stay with these trends for the foreseeable future.

Future considerations

Higher housing costs and buyer demand could dip if two things happen in 2022: consumers begin to push back against the higher housing costs, and employers begin to insist on in-office work again. Since the pandemic, many people have been able to relocate to dream destinations. If those destinations are no longer affordable or employees are called back into in-office jobs, we can expect to see more Westport homes on the market and for lower asking prices.

These trends could shift the housing market for Westport homes in addition to other luxury destinations around the country. If employees are forced back into the office, we can expect the second or destination homes to go on the market for sale. It’s possible with a push for lower housing prices there will be more supply on the market, and it will be easier to acquire houses in Westport.

On the other hand, it’s possible the market can bear these changes and the housing market will continue to climb. If that is the case, acquiring houses in Westport would be an excellent investment opportunity now. Flipping, selling, or converting the home to a rental property are all high-dollar options you can choose in the future.

2021 was a seller’s market for houses in Westport, and we expect this trend to continue as well. Regardless of shifts in the employee market or buyer pushback, there are only so many available Westport homes. With just under 40 houses sold in the area last year, we can expect that prices will continue to remain high, up to the $4 million mark, and inventory to remain low.

If this is the time to look for Westport homes for yourself or your family, getting into the market search early is recommended. Search local blogs for the best areas and get in touch with a professional local agent to start your search for Westport homes. Be prepared for higher asking prices and fewer options for houses in Westport than we’ve seen in previous years. It seems the market trends apply to Westport homes as well as those in other destination locations around the country.

In short, houses in Westport, CT have undergone the same kinds of changes the rest of the country has seen with the real estate market. There are fewer Westport homes available for sale than in previous years, and with fewer homes being constructed, that’s a fact that’s not likely to change anytime soon. Those houses in Westport that are available stay on the market an average of only 40 days and sell for up to $4 million.

Higher asking prices and low inventory are trends we expect to continue. It’s possible prices and demand will drop in the new year, but we expect that Westport homes will continue to be a hot commodity now and in the future.

Ready to get started with your search for Westport homes or do you have a house you want to sell in 2022? Reach out to local agent Julie Walsh for expert guidance.