The housing market in 2025 is showing signs of improvement compared to the challenges of 2024 and 2023. While home prices and mortgage rates remain elevated, inventory levels are gradually increasing, offering some hope for buyers who have struggled to find options. Nationally, we expect home sales to grow by about 6% this year, and new construction is helping ease supply constraints in some areas. For Vermont buyers, the market reflects these trends but faces additional challenges, including high property taxes and limited inventory in sought-after towns.
| Single-Family January-December 2024 | ||||
|---|---|---|---|---|
| Median Sale Price: | Average Sale Price: | Units Sold: | Newly Listed: | Days on Market: |
| $499,000 | 8.5% | $576,192 | 8.6% | 1,778 | -1.5% | 2,265 | 7.0% | 34 | 17.2% |
| Condos January-December 2024 | ||||
|---|---|---|---|---|
| Median Sale Price: | Average Sale Price: | Units Sold: | Newly Listed: | Days on Market: |
| $375,000 | 4.2% | $422,360 | 4.3% | 669 | 19.9% | 779 | 20.4% | 29 | 31.8% |
Affordability and Opportunities for Buyers
In 2024, affordability was one of the biggest hurdles for buyers, as mortgage rates climbed higher than expected and home prices remained near record highs. Many would-be buyers found themselves sidelined, waiting for conditions to improve. If you’ve been holding off on purchasing a home, 2025 could offer better opportunities as rates are projected to stabilize in the 6.3%-6.6% range and the growth in home prices is expected to slow to about 2% nationally. For those ready to make a move, Vermont’s unique appeal and demand for homes mean it’s still a competitive market, especially in areas with strong job growth and outdoor amenities.
In northwest Vermont, including Chittenden, Addison, Franklin, and Grand Isle counties, the median sale price of a single-family home rose by 9% to a high of $499,000. The number of units sold inched up by 1.5% despite 7% more listings coming on the market. Most regions included in this report saw median sale prices increase between 5-8%, consistent with previous years. For perspective, we have included a graph going back to 2017 to illustrate the effects of supply & demand on the prices of single-family homes across northwest and central VT.
The Impact of New Construction
One major trend to watch is the impact of new construction as builders help address inventory shortages. Nationally, newly built homes are expected to account for 30% of available listings this year—double the historic share. In Vermont, where supply remains tight, new developments are crucial for meeting demand. Housing is, rightfully so, a focus for Vermont leaders with proposals for making it “faster, easier, and less expensive” to build housing being put forth this legislative session. It is estimated the state will need more than 41,000 new homes by 2030 while only 25% of that goal is in the process of actually being planned and built.
Seller Advantages & Changing Buyer Preferences
For sellers, the so-called “locked-in” effect might sound familiar. With 75% of U.S. homeowners holding mortgages below 5%, many people are reluctant to sell and trade up to a higher rate. If you’ve been thinking about selling, keep in mind that Vermont’s market remains strong, especially for well-priced homes with modern features. Inventory is still tight, which means less listing competition for your home. This is especially true for well-priced properties in good condition. Life changes, slightly more inventory, and homeowners flush with equity is encouraging more sellers to make a move.
Affordability remains a concern, but there are signs of relief ahead. Slower price increases, wage growth, and creative solutions like co-ownership or multi-family investments are opening new doors for many buyers. About 30% of Millennial renters are now in a position to buy homes, which could drive more activity in the market. For buyers in Vermont, patience and flexibility are key. Exploring financing options, or broadening your search to include nearby communities could make all the difference. In northwest Vermont, the median sale price of condos was $375,000 compared to $499,000 for single family homes. The condo market saw a surge in demand, with significant growth in units sold and new listings coming to market. This may indicate a shift in buyer preference toward more affordable and low-maintenance housing options coupled with an increase in newly constructed units across the region.
A Competitive Yet Promising Market
While the 2025 housing market won’t be without its challenges, there are opportunities for both buyers and sellers. Vermont, in particular, remains a desirable place to live thanks to its quality of life, strong sense of community, and commitment to sustainability. Whether you’re buying your first home, upgrading to meet your family’s needs, or considering selling, staying informed about market trends will help you make the best decisions for your future