Candlewood Lake Real Estate. Free MLS search of all Candlewood Lake Homes for sale & properties. Your #1 resource for everything in and around Candlewood Lake Connecticut Living in the Candlewood Lake area of Western Connecticut provides residents with a peaceful lifestyle amongst tremendous natural beauty. Just minutes away, though, are all of the urban offerings of city life. Each of the five towns surrounding the lake boast characteristics that designate them as a unique community different from neighboring areas. While some communities may tend towards rustic, unspoiled lifestyles, others come alive with all the hustle and bustle of larger cities.