Luxury Market

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.

High demand for luxury homes across the state and locally in northwest Vermont continued in 2022. The luxury market continues to reach historic levels as consumers with means chose to add another home to their portfolios – or acted upon their dream of living in rural areas or locations aligned with their values. Buyers from within Vermont sought views, flexible spaces, and high-end amenities.

The number of newly listed properties did not satisfy consumer demand with only 74 properties coming to market and 93 units sold. There was a nearly 26% increase in luxury homes sold last year versus 2021. At mid-year 2022, we thought that buyer demand, fewer available homes, and changes from the Federal Reserve may cool the luxury market. That was not the case as the luxury buyer is less affected by rising mortgage interest rates like the rest of the market. Buyers watched for the perfect home to hit the market, commonly alerted by their Agent, and snapped up the property often amidst multiple offers. The average days on the market dropped from 59 days in 2021 to only 39 days in 2022.

We have provided the 2022 luxury sales by county for northwest Vermont highlighting some of the top towns as well. Globally, Luxury Property Specialists aligned with Coldwell Banker are among the best, exceeding expectations for their discerning clients every day. In 2022, Coldwell Banker affiliated agents closed $267 million in Luxury sales daily with an average sale price of $1.9million.

Locally, our Agents closed 1 in 4 luxury transactions in northwest Vermont – far more than any other company in the area. Our skilled Agents and our 360-degree marketing approach combine to share the beauty of luxury homes with an affluent audience nationally and internationally.

The luxury market reached historic levels throughout the pandemic as consumers with the means chose to add 2nd (or 3rd) homes to their portfolios, made their vacation homes their primary residences, and acted upon their dream of living in rural areas or locations aligned with their values. Vermont was one of the locations that often fulfilled those dreams.

The luxury market reached historic levels throughout the pandemic as consumers with the means chose to add 2nd (or 3rd) homes to their portfolios, made their vacation homes their primary residences, and acted upon their dream of living in rural areas or locations aligned with their values. Vermont was one of the locations that often fulfilled those dreams.
Northwest Vermont was not impacted as dramatically as the resort towns and southern Vermont; however, we did see significant demand. The first half of 2022 continued that trend as 39 properties sold at price points of over $1.0 million dollars – a 32.1% increase from 2021. Only 21 new properties came to market, a reduction of 40.0% from the prior year.

Slowing buyer demand and fewer available homes will likely cool this trend in late 2022. Before the pandemic, the luxury market was over-supplied with a three-year supply of homes for sale. Recent demand has reduced that to under 30 units, less than 12-18 months of supply in more typical market conditions. Although unique properties, well positioned and maintained, continue to move quickly, often with multiple offers. Our Agents are well versed through a dominant number of transactions to assist clients in navigating the luxury real estate market.

High demand for luxury homes across the state and locally in northwest Vermont continues resulting in an increase of nearly 8% in units sold in 2021. Buyers from within Vermont sought views, flexible living space and high-end amenities while out-of-state buyers sought refuge from metro areas or properties to enjoy with their friends and families.

New listings coming to market in the first half of 2021 were very strong as home sellers recognized the opportunity to right size their life or capitalize on their strong equity position. Demand remained strong all year as buyers waiting for the perfect home to hit the market, snapped up properties across the region, with the average number of days from listing to close at just under 2 months. Chittenden County posted 76% of the luxury sales followed by Addison County. We have provided the 2021 luxury sales by county and highlighted some of the top towns as well.

Internationally, Coldwell Banker agents transact nearly $168 million in daily luxury sales. Locally, our agents represented 1 in 3 clients closing on a luxury sale in 2021. Our skilled agents and our marketing, including best in class domestic and global listing syndication and prestigious publications, are a remarkable force in the arena of high-end real estate.

*Our luxury property recap includes single family homes and condominiums that have sold for $1.0 million or more across northwest Vermont. This reflects a change from prior reports where we included sales of $850,000 or more in the luxury category. Franklin County recorded no residential sales above $1,000,000 in 2021.

The stunning increase in Luxury sales across northwest Vermont and the entire state in 2020 has continued through 2021. Driven by cash buyers from within Vermont, who desire high-end amenities, views, and additional flexible living space, plus out-of-state buyers moving out of metro areas and closer to family – the luxury market grew by 200%.

Luxury home sellers recognized the opportunity to right-size their lifestyle or capitalize on their strong equity position, taking their REALTOR’s advice and listing their homes earlier in the year. A 48% increase in new homes coming to market offered new opportunities for buyers who snapped up properties across the region – predominantly in Chittenden County, which accounted for 81% of the area’s luxury sales.

Internationally, Coldwell Banker agents transact $168 million in daily luxury sales, including more than 32,000 properties sold. Locally, our agents represented clients in 1 out of 3 luxury sales closed in northwest Vermont so far this year. Our agents and our marketing, including best-in-class domestic and global listing syndication and prestigious publications, are a remarkable force in the arena of high-end real estate.

*For this report, Luxury homes are defined as residential properties priced $850,000 or more.

In spite of a slow start, in part due to COVID-19, the luxury market ended the year in record fashion. While out of state travel restrictions stifled the traditional spring market, by mid year buyer demand began to rise. 

Property videos, professional photography, and options like FaceTime offered creative solutions for “COVID -19 refugees” to consider a purchase without always visiting the homes in person. The term “second primary residence” was coined as buyers and vacation homeowners moved to their Vermont properties for extended periods.

Across the state, Vermont Realtors sold over 300 homes worth over $1 million or more, nearly three time the prior year. Northwest Vermont recorded 108 sales at prices over $850,000, a 40%+ increase. The luxury market, unlike mid price ranges had available inventory that, in some cases, had sat on the market for some time.

The stunning rebound in sales during the second half of 2020 is largely driven by out of state, cash buyers or Vermonters who desire high-end amenities, views, and location while living & working remotely. In the COVID-19 era, “want and need” have become more significant variables affecting the decision-making process to buy in the luxury market.

The luxury market (defined in this report as residential sales priced $850,000 and greater) has been affected by economic conditions as well as out of state travel restrictions due to COVID-19. The number of sales declined by 48% over the same period last year and are slightly lower than 2018 levels. The median price increased by 8%, likely a result of the small number of sales as opposed to price appreciation. 

14 of the 15 luxury home sales were in Chittenden County, with no luxury sales in Grand Isle County through June. Now that out of state buyers have more flexibility in traveling to Vermont (with home state quarantine allowed), we expect luxury sales in neighboring counties to increase. Nationally, the luxury market has slowed, but Vermont remains one of the most affordable luxury home markets in New England. With proximity to Boston and New York, plus an international airport, buyers able to work remotely while seeking safety from the crowds of more populated markets, and can find many options in northwest Vermont.

Luxury Home sales, defined as $850,000 and above, in Northwest Vermont have continued to grow increasing 32% since 2016.

Nationally, the luxury market has slowed, but Vermont remains one of the most affordable luxury home markets in New England – which may be bolstering sales here. Local lenders report that Jumbo loans remain remarkably competitive offering favorable options for luxury home buyers, as well.

In Chittenden County, 49 luxury sales were closed, including homes in downtown Burlington, on spacious lots with views in Shelburne & Charlotte, along the popular Spear Street in South Burlington, as well as on the Lake Champlain shoreline.

Luxury sales of country homes in Addison County and lakefront homes in Grand Isle County rounded out the luxury market for 2019.

Many homes in the luxury category went “under contract” within just days of coming on the market demonstrating pent-up demand of buyers waiting for a home in the right location offering the the right amenities. The average “days on market” of 123 days is inflated by some of the special properties on the upper end of the market.