One topic that interests nearly all Westporters is real estate. Our homes are (often) our biggest investments. We want to know where the market is, and where it’s headed.
Today, the KMS Team at Compass offer some thoughts.
Since 2020, it’s been a seller’s world: multiple offers by the weekend, escalation clauses, buyers waiving inspections.
Over the last few months though, we have started to feel that pace ease. Some homes are sitting a little longer. Buyers are taking a breath before they write offers, and there have been more price adjustments. Not every listing draws a crowd on Day One.
To be clear, this isn’t a downturn, and it still isn’t a true buyer’s market.
Westport is a draw and a wonderful place to live, and well-priced homes in good condition continue to sell. What we are seeing may be the very beginning of a healthier, more balanced market, one where both sides have a fair seat at the table.
What do we think is behind the shift? It could be a few things. Mortgage rates have been inching up again, which makes buyers more cautious.
The midterms are around the corner, and there’s a general sense of uncertainty about where the economy is headed. Historically, this kind of uncertainty makes people pause rather than rush. Some buyers are waiting to see how things settle, and some sellers are wondering whether now is the right time to make a move.
New 4-bedroom construction at 16 Westport Avenue by Compo Beach offers eco-conscious design, a rooftop deck and heated spa. It’s listed for $6.495 million.
None of this is cause for alarm. Markets move in cycles, and after such a long stretch of intensity, a little cooling is natural and probably overdue. The statistics will take time to catch up; we should have a clearer picture by mid-2027.
Yet the “wait and see” often backfires. It sounds prudent, but more often it is indecision dressed up as strategy. Many buyers who wait end up wishing they hadn’t.
- The crowd comes back all at once. When buyers sit on the sidelines, they tend to return together, bringing more competition, higher prices and less choice.
- Things can get better, but they can also get worse. It’s like a shopper who holds out for 40% off sale that is already marked down 25%, only to find her size is gone.
- Rates could stay high. If inflation persists, rates likely will too, and a $1 million home today could cost $1,05 milion a year from now. If rates fall, more buyers jump in and prices can rise even faster.
- You have to live somewhere. Rents aren’t falling in most areas, and every rent check builds someone else’s equity.
- Qualifying matters as much as the rate. Today your income is steady and your credit is strong. Circumstances change. And if rates drop later, you can refinance.
- You’re buying for the long haul. Most people stay in a home for 7 to 12 years or more. Over that span, timing the market rarely pays off.
- There’s always a way in. Buyers may choose a less expensive, unrenovated home to offset higher rates. When rates come down, they refinance and renovate, building equity the whole time.
This 3-bedroom, 3-bathroom house at 280 Main Street is listed for $1.199 million.
Does a lower rate mean a lower cost? What if prices continue to appreciate? Here’s an $800,000 home with 20% down, comparing buying today with waiting a year for a half-point rate drop while prices rise 5%:
| Buy today | Wait a year | |
| Price | $800,000 | $840,000 |
| Rate | 7.00% | 6.50% |
| Down payment | $160,000 | $168,000 |
| Loan amount | $640,000 | $672,000 |
| Monthly principal & interest | ~$4,258 | ~$4,247 |
Even with the lower rate, the buyer who waits brings $8,000 more to closing, borrows $32,000 more, and lands on essentially the same monthly payment, minus a year of equity.
If you’re thinking about buying, this may be the most encouraging window we’ve seen in years. You have more time to decide, more room to negotiate and less competition than you’ve faced since 2020. It’s a good moment to get pre-approved and start looking with a clear head.
If you’re thinking about selling, demand for Westport is still strong and values remain healthy. The difference is that preparation and pricing matter more than ever.
Homes that are well presented and priced right from the start are still selling well. Homes that reach too high are more likely to sit and often net less in the end. A thoughtful strategy makes all the difference.
The right time to buy or sell is when the home, the numbers and the timing make sense for you.
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