The 2025 real estate market across Northwest and Central Vermont marked a clear shift toward balance after several years of volatility, mirroring trends seen both statewide and nationally. Sales activity increased, inventory levels improved, and prices continued to rise at a more moderate, sustainable pace. Statewide Vermont saw unit sales increase nearly 6 percent with the median sale price rising to about $385,000, while the five-county region of Addison, Chittenden, Franklin, Grand Isle, and Washington outperformed the state overall. In this region, total unit sales rose more than 6 percent, single-family home sales climbed over 10 percent, and the median single-family price reached $500,000.
| Single-Family January-December 2025 | ||||
|---|---|---|---|---|
| Median Sale Price: | Average Sale Price: | Units Sold: | Newly Listed: | Days on Market: |
| $500,000 | 4.2% | $581,094 | 3.5% | 2,480 | 10.4% | 3,216 | 11.7% | 41 | 24.2% |
| Condos January-December 2025 | ||||
|---|---|---|---|---|
| Median Sale Price: | Average Sale Price: | Units Sold: | Newly Listed: | Days on Market: |
| $384,900 | 6.5% | $427,773 | 3.7% | 751 | -5.1% | 988 | 6.5% | 40 | 42.9% |
Condo sales softened slightly as affordability pressures persisted, while multi-family properties emerged as a standout segment, driven by strong rental demand and limited supply. Land sales stabilized, though pricing eased as buyers weighed development costs and feasibility more carefully.
These local trends unfolded against a national backdrop of improving but still constrained conditions. According to the National Association of Realtors, existing home sales rose 1.7 percent nationally in 2025, while inventory increased more than 12 percent year over year but remained well below pre-pandemic norms. At roughly 2.6 months of supply, the market is still undersupplied compared to a balanced level of four to six months.
Mortgage rates averaged about 6.6 percent for the year, starting near seven percent and gradually easing into the low sixes, which helped stimulate buyer activity later in the year. As rates declined, purchasing power improved meaningfully compared to late 2024, and buyer confidence followed, even as price growth slowed.
An Evolving Buyer and Seller Landscape The profile of buyers and sellers continues to evolve. Homeowners are staying in their properties longer, with the median length of ownership now around 11 years, reflecting the lingering effects of rate lock-in. First-time buyers remain at historic lows, constrained by higher home prices, student debt, and difficulty saving for down payments, while Baby Boomers and other repeat buyers—often with substantial equity—are driving much of the market. Cash transactions make up a significant share of sales, multi-generational purchases remain common, and most buyers are moving relatively short distances, reinforcing the importance of local markets and community ties. Despite affordability challenges, confidence in homeownership remains strong, with the majority of buyers viewing a home purchase as a sound long-term investment and long-term financial asset.
Looking ahead to 2026, conditions point to a healthier and more functional housing market. Inventory in Vermont is already about 10 percent higher than a year ago and is expected to continue growing, gradually easing competition and reducing the frequency of multiple-offer situations. The lock-in effect is steadily fading as life changes prompt more homeowners to move, and new listings are expected to continue rising. Mortgage rates are projected to remain in the low six percent range, with any declines likely to be slow and incremental, supporting steady demand rather than another surge. Price appreciation is expected to remain modest—roughly 1 to 2 percent nationally and closer to 2 to 3 percent in Vermont—while wage growth is likely to outpace home price gains again, improving affordability at the margins.
Even with these improvements, long-term structural challenges remain. Vermont continues to face a housing deficit created by decades of underbuilding, aging housing stock, and rising construction costs. Addressing affordability and supporting long-term economic growth will require continued zoning and land-use reform, improved access to capital, and greater predictability in the development process. Overall, the market entering 2026 is no longer driven by urgency or speculation, but by intention and strategy. Buyers have more room to breathe, sellers must be thoughtful in how they prepare and price their homes, and long-term value remains intact across Northwest and Central Vermont.