Connecticut Real Estate Market Evolving with Ryan Braunagel

Written by:

Steve Marcinuk

Date:

19 May 2025

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Connecticut’s real estate market is experiencing a shift. While low inventory continues to support a seller-friendly environment, agents on the ground are seeing clear signs of change. For seasoned professionals like Ryan Braunagel, these evolving dynamics mark a notable turn.

“The days of 10 competing offers are behind us,” explains Braunagel, a Realtor with Keller Williams who brings 18 years of experience to the table. “We’re still in a seller’s market due to low inventory, but the dynamics are clearly shifting.”

Braunagel, who earned his real estate license at just 18, comes from a family deeply embedded in the industry. His father is his business partner, and his mother coaches around 30 agents across the country, giving him early exposure to the forces that shape market behavior.

The Cooling Multiple Offer Landscape

One of the most notable changes in the Connecticut market is the evolution of bidding wars. While multiple offer situations haven’t disappeared entirely, their intensity has diminished significantly.

“The number of homes receiving multiple offers is shrinking,” Braunagel notes. “When buyers are in multiple offer situations today, they’re competing against two or three other buyers instead of ten like we saw during the peak.”

This shift is occurring despite inventory levels that remain relatively low compared to historical norms. “Inventory is still somewhat limited, but buyer activity has decreased even more,” he explains. “We’re seeing months of inventory gradually increase as buyers become more selective.”

Interest Rates: The Market’s Puppet Master

Braunagel attributes much of this market adjustment to fluctuating interest rates, which have created a stop-and-start pattern in buyer activity.

“Interest rates spiking back up again has introduced uncertainty into the market,” he observes. “Buyers are being more patient and strategic about their purchases.”

The market experienced a brief surge in activity when rates temporarily declined earlier this year. “When interest rates dipped, we immediately saw the return of buyers who had previously postponed their purchases,” Braunagel recalls. “A year ago, many buyers had said, ‘We’re going to exit the purchasing market. It’s just too crazy.’ These sidelined buyers briefly returned during the rate dip, only to retreat again when rates climbed back up.”

The New Reality for Sellers

For sellers, the market remains favorable but increasingly requires realistic pricing strategies. “It’s all about pricing,” Braunagel emphasizes. “If you’re priced right, your property will sell, but the days of automatic bidding wars regardless of price are over.”

One telling indicator of this change is the increasing frequency of appraisal issues. “I’ve seen more problems recently with homes not appraising at contract value,” he notes. “Appraisers are becoming more conservative, and banks are analyzing the data more carefully.”

Managing seller expectations has become increasingly important in this environment. “Sellers often have high expectations based on what they heard was happening a year ago,” Braunagel explains. “Our job is to show them current market trends and set appropriate expectations for today’s reality.”

The Tale of Two Markets

Not all segments of the Connecticut real estate market are experiencing identical conditions. Braunagel identifies clear differences in activity levels across price points.

“The first-time home buyer segment is definitely moving faster than trade-up homes,” he observes. “Properties under $400,000 are selling quite well, while higher-priced homes are sitting longer.”

This disparity stems largely from the interest rate environment, which has created a “lock-in effect” for existing homeowners. “Traditional move-up buyers are locked in at very low interest rates, often below 4%, and they’re reluctant to exchange that for rates in the 6.5-7% range,” Braunagel explains.

The financial implications of such a move can be substantial. “When homeowners trade up, they typically purchase a home that’s 50% more expensive. When you factor in the higher interest rate, families often face double the payment instead of just 50% more. That’s a difficult pill to swallow.”

Multi-Family Market: A Shifting Investment Landscape

The investment property market, particularly multi-family homes, faces distinct challenges in the current environment. “For many multi-family investment properties, the numbers simply don’t work because financing is too expensive,” Braunagel notes. “That segment is moving much slower than it was a year ago.”

This has created an interesting shift in buyer demographics. “We’re seeing more multi-family properties being purchased by first-time homebuyers or individuals planning to live in one unit while renting the others to offset homeownership costs,” he explains. “Traditional investors are largely on the sidelines waiting for better conditions.”

Looking Ahead: Market Predictions

When asked about his outlook for the remainder of 2025, Braunagel points to macroeconomic factors as the key determinants.

“The broader economic environment will be decisive,” he says. “Inflation appears to be decreasing, which is positive news. The Fed will likely reduce rates if this trend continues.”

He also mentions potential policy changes that could benefit buyers: “My mortgage broker indicated that certain mortgage fees are being eliminated, which could reduce the spread between the Fed rate and actual mortgage rates. That would improve affordability for buyers.”

Braunagel doesn’t anticipate dramatic market movements in either direction. “I don’t expect to see the huge market spikes we experienced during COVID, but lower rates will help maintain stability,” he predicts. “The market will likely maintain its current trajectory, with most participants watching interest rates closely.”

For buyers and sellers navigating Connecticut’s evolving real estate landscape, Braunagel’s insights suggest a market that remains favorable for sellers but is gradually becoming more balanced. The era of frenzied bidding wars may be waning, but properly priced homes continue to sell, and strategic buyers may find more opportunities and less competition than they would have just a year ago.

“The key for success in today’s market,” Braunagel concludes, “is understanding that we’re in a transitional period. Both buyers and sellers need to adjust their expectations and strategies accordingly.”