Houlihan Lawrence Q1-2025 Darien Rowayton and New Canaan Market Report

DARIEN, ROWAYTON, NEW CANAAN

Q1-2025

Q1-2025 MARKET REPORT

EXECUTIVE SUMMARY

The first quarter of 2025 showcased the staying power of lower Fairfield County’s most prestigious communities. Darien, Rowayton, and New Canaan each posted price gains in the face of tight inventory and elevated mortgage rates, with all three towns seeing increased buyer activity compared to Q1 of the previous year. While supply remained constrained, well-located and updated homes moved quickly, often drawing competitive offers.

In Darien, closed sales rose 30 percent year-over-year, with both the average and median sale prices climbing, up 9.5 and 7.5 percent respectively. Properties spent less time on the market, and the sale-to-list price ratio held firm above 101 percent, signaling strong alignment between pricing and buyer expectations. The $2 million to $3 million range was especially active, while demand remained consistent up to $5 million.

Rowayton also saw continued price appreciation, with the average sale price exceeding $2.2 million. Homes sold faster and for closer to, or even above, asking prices. In fact, the average sale-to-list price ratio in Rowayton reached 104.2 percent, the highest of the three markets. However, the number of active listings dropped by half compared to the same period last year, creating a tighter environment for buyers.

New Canaan’s performance rounded out the region’s momentum. Sales volume increased modestly, but pricing gains were notable. The average sale price rose nearly 10 percent year-over-year, while the median price was up 8.7 percent. Days on market fell sharply, and the list-to-sale ratio remained just under 100 percent. While supply decreased slightly, demand remained healthy across nearly all price segments. Properties between $2.5 million and $4 million saw particularly strong activity.

Across all three towns, a common theme emerged: buyers are quick to act when quality and value align. Turn-key properties and homes with modern finishes continue to draw premium pricing. Price sensitivity is still present, particularly at the entry level, where inventory is scarce and affordability remains a challenge. But in the higher price brackets, demand is being driven more by lifestyle considerations and less by interest rate fluctuation.

Looking ahead to the spring market, expectations remain cautiously optimistic. Many would-be sellers are beginning to test the waters, encouraged by pricing strength and compressed time on market. At the same time, buyers, especially those moving from New York City, are seeking flexibility, space, and move-in ready convenience.

This portion of Fairfield County continues to distinguish itself by offering both proximity and polish. The strength of Darien, Rowayton, and New Canaan reflects not just cyclical dynamics, but long-term confidence in their housing stock, amenities, and quality of life.

At Houlihan Lawrence, we recognize that every home sale or purchase is a deeply personal and significant decision, and we remain uniquely positioned, with local expertise, market insight, and trusted relationships, to guide buyers and sellers through every step of the journey.

With Warm Regards,

Liz Nunan President and CEO