Vermont Luxury Real Estate Market Report

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.

Sales of luxury properties (defined as closed price of $850,000 for this report) remain strong so far this year. This has created favorable conditions for sellers and buyers alike. Well-designed homes, with proximity to downtown, access to the lake, or with views and acreage are what today’s buyers are searching for.

Across the country, the luxury home market has stabilized with the median sale price remaining near $1.4 million. Nationally, analysts agree, the luxury market’s slowdown is related to world trade activities and geopolitics. Affluent investors coming from countries with political and financial uncertainty still find North America to be a highly desirable destination although demand is softening. Vermont’s housing market, in general, has not been impacted by foreign investors for good or bad. Locally, the sales of luxury homes* has continued to grow.

After an increase of 4% in total sales in 2018, the number of luxury homes sold in the first half of 2019 jumped 70.6%. The number of homes for sale during the same period dropped 15% over 2018 and dropped nearly 28% in 4 years- meaning the inventory of homes continues to be absorbed by the market. The DOM (days on market) for the Luxury homes sold so far in 2019 is only 120 days- or 4 months. Homes in need of renovation may stay on the market for considerably longer as today’s buyers search for turn key options to suit their lifestyle.

According to “The Report – State of Luxury 2019” published by Coldwell Banker Global Luxury, “preferences for tangible features of a home such as architecture and interior design vary from person to person, but the essence of what wealthy buyers seek in a luxury home is a sanctuary that promotes their security, serenity, and overall well-being—whether the property is a gated beachfront home, an urban pied-à-terre, or a working winery sprawled across hundreds of acres. Compared to other asset classes like stocks and bonds, high-end real estate is unique in that it provides not only an investment, but also security, comfort, and enjoyment as a place to live.” On a local scale, the luxury homes sold since January 2019 reflect these qualities – homes on Lake Champlain, properties close to downtown and country properties with views and acreage.

*Luxury is defined as homes sales at or above $850,000

The 1st quarter of 2019 was strong for luxury sales. Chittenden County posted 10 of the 11 sales recorded in Northwest Vermont. As we have reported over the past 2 years, sales of higher-end properties are no longer confined to lakefront.

Buyers are attracted to amenities, proximity to the greater Burlington area or landmark homes that can be updated to suit their lifestyle. The Luxury Market in northwest Vermont continues to meander along being not too hot and not too slow – but “just right” for properties that are well priced and well-conditioned. As the weather starts to warm, interest in properties along Lake Champlain will increase. This market segment is typically not as urgent as the traditional primary residence market which is driven by job relocations, changes in family structure, or migration toward neighborhoods and school districts. Buyers may take their time searching for the right property – or decide to make a purchase because an extraordinary opportunity becomes available. Life events – such as the desire or need to downsize or lack of use of a property drive sellers to the market. Whatever your drivers, our Realtors® can help you assess your individual situation in the current market.

*For this report, the Luxury market is defined as Residential sales $850,000 and above.

Luxury Home sales in Northwest Vermont have continued to increase over previous years. While 2 additional properties sold in 2018, there has been an overall increase of 71% in units sold since 2015. The median sale price increased by 4.4% with the average sale price declining for the second year in a row. 

Nationally, the luxury market has slowed a bit 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 the cash buyer.

The months supply of luxury homes for sale has declined over prior years – which is good. While supply varies seasonally, it was at a low of 10 months and an average of 13-14 months during 2018; still a buyers market. Having said that, a number of homes that sold in 2018 went under contract within a few days – demonstrating there are buyers looking for homes with updated floor plans and amenities.

In Chittenden County, where 29 luxury sales were closed, buyers purchased homes in downtown Burlington, on spacious lots with views in Shelburne, along the popular Spear Street in South Burlington as well as on the Lake Champlain shore.

Grand Isle proved a draw for luxury buyers with 10 homes closing in 2018 versus 3 in 2017. The lower tax burden in Grand Isle is a contributing factor although the easy drive to Burlington coupled with the island vacation vibe likely contribute to the overall appeal.

*For this report, the Luxury market is defined as Residential sales $850,000 and above.

Sales of luxury properties remain strong so far this year. In the 3rd quarter alone – the number of properties sold increased by 29% with the median sale price increasing 7%. Year to date, the median price has declined slightly. 

Lakefront properties in Addison, Chittenden and Grand Isle Counties continue make up a good portion of the closed sales. However, the trend toward properties away from the lake, newer construction with amenities, views, and proximity to the greater Burlington area employers continues with sales of homes in South Burlington and Shelburne for example.

While inventory of luxury homes has declined slightly over the past few years, architecturally designed lakefront and hillside homes with stunning views are available for the discerning buyer.

Buyer interest continues to improve in the Luxury* market across northwest Vermont.

17 properties closed during the first half of 2018 with 65% (or 11 homes) closing during the 2nd quarter. New listings are generating multiple showings and, in some cases, multiple offers. Lakefront properties have sold in all four counties – including Franklin County which has recorded 2 luxury sales in more than 3 years. Filling out the buyer demand are properties away from the lake with newer construction and amenities, privacy and views along with proximity to the greater Burlington area employers. The “days on market” – or the number of days from listing to closing – fluctuates wildly with a small data sampling. A number of the properties that sold during the 1st six months of the year were on the market for well below the 225 days in this report. With 106 properties available for purchase, buyers have many options when seeking a home in the range of $850,000 and higher.

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