1. The Market Report

 Quarter 1 2026 | Market Report

Thanks to an extended winter across much of the Northeast, the housing market got off to one of its slowest starts in recent years.  Through the first quarter of 2026, total sales across our markets are down roughly 10% to 12%, with pending sales down about 6% compared with the same period last year.

Despite the slower start, the fundamentals remain intact, with no lack of buyer demand. Inventory remains the primary challenge, continuing to be extraordinarily tight across New England, New York, and the Hudson Valley.

In Connecticut, particularly in Hartford County – which was named one of the hottest housing markets in the U.S. in 2025 – and parts of Fairfield County, homes across virtually all price points are still attracting multiple offers, a clear signal of the need for new listings.

Supply remains the market’s greatest constraint, with some areas reporting close to zero months of available inventory.  A balanced market typically requires six to eight months of supply.  We need an increase of inventory to begin moving toward that balance.

Many potential sellers would like to enter the market, but they remain hesitant…not because of a lack of confidence, but because they are simply unsure where they would move next.  That dynamic is especially evident in Westchester County, where several significant listings in the $3.5 million to $13 million range are currently being prepared for market.

Elsewhere, the Hudson Valley is beginning to see modest inventory increases that could bring conditions closer to balance.  Rhode Island is also showing early signs of renewed activity, particularly among buyers seeking coastal and second-home properties.

As we look ahead to the second quarter, we remain cautiously optimistic.  With the spring market about to unfold we anticipate an increase in inventory across all of our markets.

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.

Subscribe to receive an email every month with up-to-the-minute data.