Connecticut's real estate market experienced a significant surge in home prices on February 23, 2026, as demand for housing in the area continued to outstrip supply. The latest data from the Connecticut Association of Realtors revealed that the median home price in the state rose by 10% compared to the same time last year, reaching a record high.One of the key factors driving the increase in home prices is the limited inventory of available homes for sale. Many sellers are holding off on listing their properties due to concerns about finding a new home in the current competitive market. As a result, buyers are facing stiff competition for the limited number of homes that are available, leading to bidding wars and driving up prices.In addition to the lack of inventory, low mortgage rates have also contributed to the surge in home prices. With interest rates at historic lows, many buyers are taking advantage of the opportunity to lock in favorable financing terms and secure their dream home. This increased demand, combined with limited supply, has created a seller's market in Connecticut, where sellers are able to command top dollar for their properties.While the rising home prices may be good news for sellers, it presents a challenge for prospective buyers, especially first-time homebuyers and those on a tight budget. Many buyers are finding themselves priced out of the market or struggling to compete with cash offers and bidding wars. As a result, some are choosing to postpone their homebuying plans or explore alternative options such as renting or moving to a different area.Real estate experts are hopeful that the market will begin to stabilize in the coming months as more sellers enter the market and new construction projects are completed. However, they caution that the ongoing imbalance between supply and demand could continue to put upward pressure on home prices in the near term.Overall, the Connecticut real estate market remains strong, with high demand and limited supply driving up home prices. As the market continues to evolve, both buyers and sellers will need to stay informed and adapt to changing conditions in order to navigate the competitive landscape effectively.