The number of land parcels sold in 2023 declined sharply over the prior year on top of the 27% decline in 2022. This period of decline follows amplified sales realized in 2021. However, 2023 results do not accurately reflect buyer interest as much as the same shortage in available inventory we are seeing in other segments of the real estate market. The number of days on the market for land is just over 4 months, down from 5 months in 2022 and 8 months in 2021 demonstrating that buyers were ready to make a move when the right property hit the market.
Franklin County’s median sale price jumped over 18% yet remains more affordable than other northwest Vermont counties. Washington & Addison Counties posted the most sales in the region with 99 and 60 lots closed respectively.
The 532 new units projected to open in 2023 is 53% higher than the average Chittenden County growth over the past 3 years, and 82% higher than the long-term average since 2000. Of the 532 expected units, 57% (304) are already completedThe current 2024 forecast shows 872 apartments are expected to open in 2024. This will be the highest number of units to open in a single year since the report record began in 2000. Most of these units are planned for South Burlington (420 units or 48%), followed by Burlington at 279 units or 32%. It’s important to note that almost 300 of the South Burlington units are part of UVM & UVM Health Network’s construction project to house students and faculty off campus. These units are not made available to the general public. *Source: Allen, Brooks, & Minor Report, December 2023 as of June. For comparison, the total of new units constructed in 2022 was 291, a promising indicator.
AVERAGE APARTMENT RENTS IN CHITTENDEN COUNTY
RANGE
Studio, 1 Bath
$1,300 - $2,050
One Bedroom, 1 Bath
$1,400 - $3,000
Two Bedroom, 1 Bath
$1,675 - $4,000
Two Bedroom, 2 Bath
$1,850 - $4,200
Coldwell Banker Hickok & Boardman’s Relocation Department assists individuals and companies with employment related transfers. Through that service, we understand people considering a move to Vermont may want to get to know the area before deciding to purchase a home. Renting or longterm stay options can be an alternative – but in a competitive rental market, like Chittenden County, finding a place can be a challenge.
Contact us for our Chittenden County Rental Guide to aid in your rental search. Our guide includes an update on the current rental market, information about new complexes, and answers to the most frequently asked questions. Go to HickokandBoardman.com/vermont-rental-guide for a free download.
As expected, Spring brought about an increase in activity. Purchases and pre-approvals make up 78% of the mortgage applications at New England Federal Credit Union (NEFCU). Home equity loans have seen significant growth in the past year as homeowners capitalize on their equity position, while protecting their low first mortgage interest rate.
According to Freddie Mac, the 30-year fixed rate end the second quarter at 6.71%. In this purchase market, borrowers are growing accustomed to the higher rates. Loan Officers are hard at work issuing and updating pre-approval letters, as borrowers need to act quickly in this competitive market. Amidst the increased rate environment, we saw a 15% increase in the average loan amount in 2022, as compared to an average annual increase of 4% when considering data from the past 30 years.
NEFCU’s portfolio has seen a significant increase in Construction lending. Historically, Construction loans make up 1-2% of overall production and are currently over 5%. There has also been an increase in what the industry considers non-conventional housing. This includes off-grid properties, yurts, and tiny homes. For lenders, this can introduce complications due to conventional loan requirements. In Vermont, local lenders such as NEFCU are creating portfolio products to meet the unique housing needs of our state.
Affordable housing is a focus at the state and national level. Nationally, this comes from the Duty to Serve initiative. This is a requirement for Fannie Mae and Freddie Mac to facilitate a secondary mortgage market on housing for low, to moderate-income families. Within the Duty to Serve, we are seeing a focus shift to historically underserved markets: manufactured homes, affordable housing preservation, and rural housing.
At the state level, the Vermont Mortgage Bankers Association joined other associations like the Vermont Association of Realtors to share the story of the housing crisis as legislators worked on S100, the Omnibus Housing Bill. In addition to zoning reform, the bill gives continued to support to agencies like the Vermont Housing Finance Agency, which works with participating lenders statewide to administer loan programs and grants to support homeownership. NEFCU has seen a significant increase in borrowers benefitting from these programs; VHFA loans increased 5-fold thus far in 2023 compared to 2022. NEFCU further supports affordable housing with a portfolio down payment assistance program as well as partnerships with Community Lending Trusts throughout the state.
As we move through the rest of 2023, the focus will remain on Duty to Serve, housing affordability and how to help the most borrowers achieve homeownership.
NEFCU Disclaimer: The information in this report is for informational purposes only and does not represent an offer or commitment to provide any product or service. Any rate quotes, prices or the physical information included have been obtained from sources believed to be reliable, but we do not guarantee their accuracy or completeness. Any mentions of third-party names, products, and services are for referential purposes only and are not meant to imply any sponsorship, endorsement, or affiliation unless otherwise noted. This information is based on current market conditions and is subject to change without notice
While prices for single family homes have increased across the county by nearly 51% since mid-year 2020, growth has moderated in 2023 at a 7% increase. Homeowners have seen increased equity over the past few years, while benefiting as the largest portion of their living expenses – their mortgage – remained stable. Year to date, although buyer demand remained strong, a drop of 16% in new listings resulted in a decline in closed sales. Some buyers, many who paused searches in the second half of 2022 due to rising interest rates, have reentered the market this spring to face competitive offers. This is more frequent in the more affordable price ranges. The decline in new listings is also beginning to moderate as lifestyle factors encourage many sellers to maximize gains and make moves long delayed since the pandemic.
Hillside East in South Burlington introduced one of the nation’s first 100% fossil fuel and carbon-free, climate resilient neighborhoods in the spring. With construction underway, a variety of single family and town home styles are available for reservation in the already established community. South Village, also in South Burlington, is wrapping up development with the last lots under construction.
In Chittenden County, Coldwell Banker Hickok & Boardman agents represented clients in more than 1 in 4 sales. Buying or selling your home is a big deal – the experience and results your Agent and real estate brokerage offer should be, too.
The real estate market in Addison County is not immune to the trends seen across other counties in this report although at a more moderate pace. The number of single-family homes sales declined by only 12 units, while the number of new listings on the market dropped by 17 units. With a small number of transactions in many towns, the data can show dramatic swings in one direction or the other.
Bristol, Ferrisburgh, Middlebury, Monkton, Orwell, and Vergennes proved the most popular with the greatest number of sales, however with far fewer new listings as compared to last year at this time. Ferrisburgh, in the northern part of the county, posted a median sale price of $529,000 – significantly higher than the county average of $376,000.
While there are few condominium sales in the county, the available parcels of land for sale increased by 21% during the first half. This resulted in 30 closed sales, the highest number of land sales in the region.
The first half of 2023 saw a decline of 27% in closed sales for single-family homes in Franklin County, compared to the same period last year. Additionally, new listings for single-family homes in the county dropped by 17% year-over-year, contributing to the limited inventory and increased competition among buyers.
Despite the challenges faced by the single-family home market in Franklin County, the median sale price for homes increased by around 8% compared to 2022, demonstrating that demand remains strong in this segment of the market. Among the counties included in this report, the median price of $350,000 positions Franklin as the most affordable. Not only is it easily accessible to I-89, but Franklin County also a variety of property types such as single family, condos, multi-family, and land for buyers to consider.
Fairfax, Georgia, Swanton post some of the highest number of sales in the county – along with an increase in the median sale price, indicating that these areas remain attractive to buyers.
Driven by the staggering median sale price of $1,210,000 in Stowe, Lamoille County has the 2nd highest median price across the counties in the report. Buyer demand, exceeding the inventory of single-family homes and condos available for sale, drove prices 13-14% higher than during the first half of 2022. In addition to Stowe, Cambridge and Morristown posted the greatest number of both single-family homes and condos sales in the county.
The Grand Isle real estate market has bounced back after a slow start to 2023. While new listings of single family homes coming on the market dropped by 20% over the same period last year, the 1st quarter of the year was down 57%. Still, this limited the options available for buyers as the spring and summer season approached.
The median sale price of $394,000 is a 14% increase year-over-year, indicating continued strong demand in this segment of the market. With homes selling quickly in this area – the average number of days on the market is just 27 days – it appears that buyers are ready, willing, and able to make a move when the right home becomes available.
The results of the first half primarily reflect the seasonality of Grand Isle County’s real estate market – which is heavily influenced by sales of lakefront homes. Notably, only 1 condominium sale was reported in this period.
Home to the state capital of Montpelier, with Barre being the most populous municipality, the Washington County real estate market is robust yet challenging. A drop of 15% in homes available for sale failed to meet buyer demand resulting in a 27% decline in closed sales. As a result, the median sale price jumped by nearly 16%. As we write this report, we are saddened by the flood damage sustained throughout much of the county during severe, July storms. Homes and businesses alike are cleaning up and hoping to rebuild. The short- and long-term effects of this devastation have yet to be realized.
The luxury market could arguably be stated as the market segment most impacted by the pandemic. As virtual work allowed people to move almost anywhere, many affluent buyers with both resources and flexibility chose Vermont. The number of properties sold jumped substantially, values escalated, and sales absorbed the available inventory. Prior to the pandemic Luxury homes had, on average, a 2–3-year supply on hand. This quickly dropped and has remained low.
Demand has calmed, however not diminished and sales in 2023 are flat with last year. Buyers are still shopping, as agents report a solid number of showings for new listings. Many buyers have been willing to look outside of the traditional Burlington or lake front properties to meet their needs. This may reflect a new balance of purchasers buying as a second home and many choosing to make these purchases their primary residents.