The real estate market in Stonington, Ledyard, and Groton has shifted from the frantic “panic buying” of recent years to a more strategic, high-priced, but slightly slower market in late 2024 and 2025.
While prices are generally higher than they were a year ago, the “frenzy” has cooled. Homes are sitting on the market longer, and inventory is tight but slowly growing in some pockets. The region remains resilient compared to national trends, largely due to sustained hiring at major employers like Electric Boat.
The following breakdown compares the current market (Late 2024/2025) to one year ago.
Quick Summary: The “Big Three” Takeaways
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Prices are Stickier & Higher: Despite higher interest rates (~6-7%), prices haven’t dropped; in fact, they have risen significantly in Stonington and moderately in Ledyard.
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Patience Pays Off: The days of homes selling in 24 hours are fading. Days on Market (DOM) has increased across the board, giving buyers slightly more breathing room.
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Volume is Down: Fewer homes are changing hands overall (especially in Stonington and Ledyard), mostly because homeowners with 3% mortgage rates are reluctant to sell.
Town-by-Town Breakdown
1. Stonington
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Status: High-End Growth & Market Cooling
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Price Trend: Significantly UP.
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Median sold prices have seen sharp increases, with some reports showing jumps of 20%+ year-over-year (reaching ~$600k–$800k range depending on the mix of luxury sales).
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Note: The luxury market is skewing these numbers higher, but the upward trend is real.
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Market Speed: Slower.
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Homes are taking longer to sell (approx. 63 days on average vs. ~50-60 days a year ago).
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Inventory levels are inching up, leading to mixed signals—some data even suggests a shift toward a “Buyer’s Market” in the luxury bracket as high-end homes sit longer.
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Volume: Down. Sales volume has dropped roughly 30%, indicating a standstill where buyers are picky and sellers are stubborn.
2. Ledyard
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Status: Steady, Competitive, & Affordable
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Price Trend: Moderately UP.
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Median sold price is roughly $405,000, up about 5% from last year.
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Ledyard remains one of the more consistent value-for-money markets in the region.
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Market Speed: Slightly Slower.
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Homes are selling in about 28 days (up from ~18 days last year).
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Inventory: Remains very tight. Unlike Stonington, there isn’t a surplus of inventory sitting around; if a good home hits the market, it still moves relatively quickly.
3. Groton
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Status: The “Anomaly” (Hidden Growth)
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Price Trend: Mixed Signals (Read Carefully).
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You might see data headlines claiming Groton prices dropped (e.g., median sold price ~$285k). This is misleading. It likely reflects a high volume of lower-priced condo sales or smaller homes closing in recent months.
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Single-Family Reality: The actual single-family market is strong, with median sold prices hovering closer to $440,000 and listing prices trending up significantly (some data shows list prices up 50% YoY).
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Market Speed: Slower.
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Days on market jumped to roughly 41 days (up from ~22 days last year).
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Volume: Stable/Slightly Up. Unlike its neighbors, Groton has seen flat or slightly increased sales volume, likely driven by the urgent housing needs of the local workforce (military/EB).
Broader Context: Why is this happening?
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The “Lock-In” Effect: Many homeowners in New London County are “locked in” at 3-4% mortgage rates. They aren’t selling unless they have to (divorce, job relocation, death), which keeps inventory artificially low.
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Strategic Buyers: Buyers have accepted the 6-7% interest rate reality but are no longer willing to overpay for “fixer-upper” problems. Turn-key homes sell fast; those needing work sit and stagnate.
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Local Economy: The defense sector (Electric Boat, Sub Base) provides a safety net for this region, preventing the kind of price crashes seen in other parts of the U.S.
What This Means For You
| Buyers: Don’t rush, but be ready. You have more time to inspect and decide than you did last year. In Groton and Ledyard, look for single-family homes that may have been overpriced initially and are now sitting past the 30-day mark—sellers might be ready to negotiate. | |
| Sellers: Pricing is everything. You cannot “test the market” with an inflated price like you could in 2022. If your home isn’t perfect, you must price it competitively, or it will sit for 60+ days (especially in Stonington). |