Vermont Land Sales See over 28% Boost Over 2017

Morning views to Mount Mansfield, evening sunsets with a hearty walk to the rear of the lot which is the height of this land. Land for Sale
Northwest Vermont
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$82,000 (-7.9%) $134,471 (+35.6%)95 (+28.4%)257 (-21.7%)271 (+11.5%)

Sales of land across northwest Vermont showed robust increases over the same period last year.

Addison County posted a 60% increase in land sales with a total of 32 parcels sold – equal to neighboring Chittenden County. With sellers looking to “right size” their home and take advantage of a “seller’s market” – many are turning to land purchases to build a custom home. Permitting, development and building costs can contribute to higher than average prices for the home when complete – however, the buyers benefit from new, energy efficient and lower maintenance options. Developers looking for land in key locations have also contributed to some on the increases.

The First-Time Home-buying Experience

The first-time homebuyers’ jubilance can be infectious. Everything is new, from the space surrounding them to their feelings inside.

 

“We’re so happy — very, very pleased,” says Amanda O’Brien, who, with her husband, Evan, recently purchased their first home in South Burlington, just off Dorset Street.

Like the O’Briens, Matt and Katie Campbell recently bought a home in South Burlington. “Everything about this house just fit all of our criteria,” says Matt Campbell, an insurance professional. “The price was right, and the neighborhood was excellent. The house is a great fit for us, and it allows us the extra space that our growing family needs. We love the cape style and the convenient location.”

The Campbells and the O’Briens are all in their thirties — the so-called “Millennials” — and their generation still accounts for the largest share of homebuyers in the U.S., at 26 percent, according to the National Association of Realtors (NAR) 2017 Profile of Home Buyers and Sellers.

In 2017, the share of first-time homebuyers was 34 percent — a slight dip from 35 percent in 2016. Overall, this bucks the historical norm of 40 percent of the market.

As first-time homebuyers, Millennials face challenges in the current housing market, where inventory is tight nationwide, causing the prices of homes to jump; and many Millennials carry unprecedented amounts of student debt, which can delay plans to buy a home.

In northwestern Vermont, though, opportunities exist to settle into that first home, but it’s vital to tap into a professional first, such as a knowledgeable and creative Coldwell Banker Hickok & Boardman (CBHB) agent, especially in the current market, according to the Campbells and O’Briens.

Matt Campbell had owned a home prior to the one that he and Katie bought together, so he knew about some the preparations necessary, but he and Katie still sought the advice of CBHB Agent, Michaela Quinlan. Katie and Michaela have known each other since childhood, and Matt grew up near Michaela’s father, in South Burlington.

“Michaela was excellent to work with, though we had a long prior relationship as friends,” Matt says. “She was the ultimate professional in dealing with us and really knew her stuff. I walked away from this experience holding her in higher regard for her professionalism and market knowledge, as well as her unquestioned support of her friends and clients.”

The Campbells knew what they wanted: four bedrooms, two bathrooms, two floors, a basement, and a decent-sized yard for their dogs and children: Dennis, who is 19 months old, and a daughter expected at the end of this June. They have been married for 2 1/2 years and together for five. Matt bought his previous home in 2009, after moving back to Vermont from Boston. He and Katie lived there together for three years.

“We started looking for our new home a full year prior, because I wanted to get a good handle on what the market was in the Burlington area and to be able to identify good opportunities,” Matt says. “With our growing family, we knew we would eventually need more space, and we had strict criteria on where we wanted to live, so when the right opportunity presented itself we wanted to feel confident in our decision and offer.”

The whole purchasing process took about 12 to 15 months, from the first search online to the closing date. The Campbells physically looked at 10-plus homes and viewed hundreds online. Matt saw “the one” (property) early on a Saturday morning, and they were in a multiple-offer situation by midweek — another common scenario in the current housing market.

The O’Briens also rose to the top of a multiple-offer situation. They saw their home listed late on a Friday afternoon. They toured it on Sunday. Multiple offers came in on Monday; the sellers made a decision by the end of that day, and the O’Briens closed on the property less than two months later, with the assistance of CBHB Agent, Betsy Forrester.

“Before beginning their home search, Amanda and Evan had met with a mortgage lender and had gotten a pre-approval, so they knew how much they were qualified to finance,” Forrester says. “As a couple, they had also discussed areas where they wanted to live and the style and type of home that suited them both, so we were able to start with more targeted search parameters.”

Be prepared: It’s the advice that Forrester, Quinlan and all our agents offer most to first-time homebuyers, who should look at their finances and meet with a mortgage lender to first determine a comfortable mortgage payment. Also, Forrester says, realize that finding a home involves compromise of the “must haves” and the “like to haves.” Finally, she and Quinlan say it is important to be patient, and not take the bidding process personally.

“Purchasing a home is a process, and sometimes it takes a while for everything to come together just right,” Forrester says.

The O’Briens rented before buying their first home, as did 73 percent of other first-time homebuyers in 2017, according to the NAR. Evan, who is an attorney, is a Manhattan native. He and Amanda, a Rutland native, met in college and had rented in pricy New York City before deciding it would be more cost-effective — and better to be closer to family — if they settled back in Vermont and bought a home.

They, too, had a checklist of “wants” and “needs” that is typical for first-time homebuyers in their generation: lots of efficiencies, little maintenance and renovation, and proximity to an urban area with several amenities. They started saving for a house and preparing for their purchase even before returning to Vermont.

“It made things quite a bit easier,” Evan says.

Forrester educates first-time homebuyers with no home maintenance experience — especially those that have rented first — to “look beyond the sparking new kitchen or Pottery Barn-style living room” and consider the overall structural quality of the home, from the roof to the furnace.

“If buyers are stretching to be able to afford a home and the roof needs imminent replacement, then they need to be prepared for that expense soon after purchase or move on to find a home that likely won’t need major repairs until further into the future,” Forrester says.

Younger generations are renting longer, even though renting is expensive, but buying a home is still a better long-term investment.

“Owning property is a forced savings account,” says Michaela Quinlan. “I work with a lot of millennials that have a hard time putting away money into a traditional savings account. When you pay your landlord, the money disappears. When you pay a mortgage, you are building equity that will be there for you in the future.”

Both the Campbells and the O’Briens tend to stay in their homes for several years, which is another growing trend in the current housing market: More people are staying put longer — about 10 years in their home, as opposed to the traditional average of seven.

“The work and life balance in Vermont seems to be more in line with what we want for our lives than more urban or metropolitan areas,” Matt Campbell says. “When comparing other options, it became clear that Vermont, and more specifically Chittenden County, is an excellent place to raise a family.”

First Quarter 2018

Spectacular Main house with 24′ cathedral ceiling, gracious guest house plus rustic cabin on 24 acres with mountain views & pond in Lincoln. Vermont Luxury Homes
Single Family
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$276,500 (+11.9%)$294,085 (+5.7%)348 (-2.5%)573 (-12.52%)117 (+6.4%)
Condo
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$207,500 (-15.6%)$243,270 (-13.2%)118 (-0.8%)178 (+12.7%)84 (-29.4%)

Our 1st quarter market update provides an overview of the real estate activity in early 2018 throughout northwest Vermont (Addison, Chittenden, Franklin, and Grand Isle Counties). Historically, the first 3 months of the year represent the slowest period for sales. With a smaller number of sales, data within this report can be affected in a positive or negative direction without truly representing a trend in the market.

Median prices rose for single-family homes in northwest Vermont during the first quarter with Addison and Chittenden Counties showing strong increases. Despite a reported decline in median price, which brought pricing back to 2016 levels, Condos still remain a popular option among purchasers looking for ease of maintenance in their home. The number of condos coming on the market increased as a result of new construction in cities such as South Burlington and Williston.

While the number of properties sold dropped year over year, this is a reflection of the limited inventory on the market during the end of 2017 and early 2018. Chittenden County posted an 8% increase in units sold after a weak 1st quarter in 2017.

Grand Isle County Gets off to a Slow Start

This cottage has one of the best Lake and Green Mountain views in all the Islands! | MLS# 4681894

Single Family
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$164,500 (-21.7%)$243,041 (-4.2%)16 (-36%)33 (-43.1%)275 (+56.3%)

Condo
* No Sales reported in the Multiple Listing Service (MLS)

Homes sold in Grand Isle County during the 1st quarter reflect a sharp decline over the same period in 2017.

However, the number sold is equal to the same period in 2016. In other words, the strong start for Grand Isle in 2017, with 25 sales, was unusual – and 16 closings in 2018 may not indicate a downward trend for the remainder of the year.
Historically, the spring and summer are stronger in this traditionally second home market.

 

 

Chittenden County saw robust increases in home sale prices

Easy one-level living with 3 bedrooms, 2.5 baths, master suite, 1st-floor laundry, finished basement, fenced yard and more! | MLS# 4681438

Single Family
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$315,305 (+8.9%)$349,199 (+6.2%)193 (+8.4%)296 (-12.7%)81 (-9%)

Condo
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$226,000 (-9.4%)$254,126 (-11.6%)101 (0%)159 (+12%)68 (-40.4%)

While Chittenden County as a whole, posted a healthy increase in median and average sale prices, along with the number of units sold for single-family homes, the story varies city by city.  

Burlington, Essex, and South Burlington lead the county with 35% – 59% increases in single family homes sold over a very soft 1st quarter of 2017. Condo sales fared well in Burlington and South Burlington as well. The number of condos available for sale in South Burlington increased by 67% over the same time last year – helped along by new projects such as Hillside at O’Brien Farm and South Village. Williston and Milton homes sales slipped year over year, however, with the 1st quarter being the lowest in sales for the entire year, there is still the opportunity to recover as the traditionally busy spring and summer markets heat up. Well maintained properties in desirable locations, priced up to $400,000 are generating multiple offers due to pent-up Buyer demand and low inventory. Buyers and sellers should consult with their agent as to the best strategy for their unique circumstances in order to achieve their real estate goals in 2018.

Single-Family Home Prices continue to rise in Addison County

Swim, fish and boat from this premier deep-water property in Addison! Homes on Lake Champlain

Single Family
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$255,000 (+15.9%)$268,211 (+5.86)46 (-13.2%)83 (-25.9%)186 (+33.8%)

Condo
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$159,240 (-18.9%)$148,548 (-44.8%)5 (-28.6%)3 (+200%)61 (-50.8%)

The growth in the median and average sold price for residential property in Addison County continued into the first quarter of 2018.

The median price of single-family homes continues to rise year over year while the number of homes for sale hit a five year low. Starksboro, Vergennes, Lincoln and Middlebury lead the county in the number of sales closed – all posting healthy increases in the median sale price of single-family homes.

The number of land sales increased by 78% over the 1st quarter of 2017.

Franklin County offers homebuyers more home for their money

Meticulous & well-maintained do not even begin to describe this 4 bedroom, 4 bath Colonial home located on .5 acre lot in the very desirable hill section of St. Albans. MLS# 4687255

Single Family
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$184,000 (-6.2%)$201,289 (-3.2%)93 (-7.9%)161 (+10.3%)129 (+12.2%)

Condo
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$171,450 (-27%)$191,359 (-12.8%)12 (+9.1%)16 (+14.3%)228 (+48.1%)

Home buyers find affordability and options across Franklin County.

The number of new properties listed during the start of 2018 has increased, and the total number of homes available to purchase has stabilized.

Buyers are finding more home for their money in towns and cities close to Interstate 89 like Fairfax, St. Albans and Swanton– while vacation home purchases are driving median price increases in towns in the northeast part of the county.

Five out of six luxury homes sold, so far this year, have been lakefront homes

The ultimate lakefront lifestyle in Colchester. MLS# 4820823
Luxury Homes
Median Sale Price:Average Sale Price:Units Sold:Days on Market:
$987,500 (+7.1%)$992,167 (+0.2%)6 (-14.3%)293

Buyer interest seems to be heating up in the Luxury market*.

While 6 properties sold this quarter compared to 7 during the 1st quarter of 2017, new properties coming on the market are generating multiple showings. With a small number of sales, the “days on the market” (from list to close) fluctuates wildly year over year. 5 of the 6 properties sold so far this year are lakefront properties from Grand Isle down to Ferrisburgh.

* The Luxury market is defined as properties selling for $850,000 & above.

The Multi-Family market saw a big jump in the average home sale price

Overflowing with options! This spacious duplex, in Essex, is ready for you! Multi-Family Homes

Northwest Vermont
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$322,500 (+13.2%)$487,965 (+64.8%)36 (+33.3%)32 (-37.3%)112 (+72.3%)

Chittenden County
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$413,500 (+24.4%)$608,718 (+55%)24 (+33.3%)18 (-37.9%)90 (+55%)

The multi-family market showed a healthy increase in the median price sold and a big jump in the average price sold – driven largely by some high priced sales in Chittenden County.

With 24 closed transactions in Chittenden County during the 1st quarter and only 53 properties available during that time, the market remains competitive for investors. Although the days on the market from list to close increased over the same period last year, this still represents only 3.5 months on the market for closed properties- indicative of a typical “seller’s market”. Newer apartment complexes coming online have eased the historically low vacancy rate in the greater Burlington area a bit, however there is still strong demand from renters.

More buyers are turning to land purchases to build a home

Spectacular-owned lakefront property featuring unobstructed views of Lake Champlain in Burlington. MLS# 4667247

Northwest Vermont
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$84,200 (-6.4%)$174,492 (+72.1%)42 (+13.5%)99 (0%)263 (-5.1%)

Chittenden County
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$127,500 (+20%)$330,071 (+159.6%)14 (-12.5%)39 (+34.5%)287 (+90.1%)

Addison County
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$66,250 (-24.7%)$114,672 (+19.3%)16 (+77.8%)34 (-2.9%)270 (-58.6%)

Franklin County
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$62,000 (+20.9%)$74,540 (+34.9%)10 (+11.1%)22 (+15.8%)215 (+32.7%)

Grand Isle County
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$63,750 (-8.9%)$63,750 (-46.3%)2 (-33.3%)4 (-75%)284 (+75.3%)

The number of sales for land has increased across Addison and Franklin Counties, where the median price of land is more affordable than nearby Chittenden County.

Still, as the availability of single family homes for sale across northwest VT continues at historic lows, buyers are turning toward land purchases in order to build their home. Permitting, development and building costs can contribute to higher than average prices for the home when complete – however buyers benefit from new, energy-efficient and in some cases, custom selections for their home. Developers looking for land in key locations have also contributed to some of increases.