Luxury Market

Of the 7 properties that sold during the 1st quarter of 2017, 6 were located in Chittenden County and 1 property was in Addison County.  

A country home with mountain views, luxury condominiums, a contemporary lakefront dwelling near downtown Burlington and an antique lakefront home in Ferrisburgh are just some of the sales that closed in early 2017.

With more than 90 properties for sale, the Luxury market in Northwest Vermont provides plenty of options for buyers in the $850,000 and higher range. Sellers have grown more flexible in their expectations of prices and negotiations.

* The “Days on the Market” until sale for the 4 properties actively marketed through the multiple listing service may reflect the pent-up Buyer demand for well-priced, unique properties close to amenities.

The luxury market in Northwest Vermont provides plenty of options for buyers seeking properties in the range of $850,000  and higher.     

The market for luxury properties has been slower to pick up than lower-priced homes, and as a result, sellers have grown more flexible in their expectations on prices and negotiations.

High-end buyers are typically seeking lakefront property or estates with significant views of the mountains or lake. Those properties that lack either a view or waterfront access may face more difficulties in attracting potential buyers.

Popular towns with luxury buyers include Shelburne and Charlotte, which offer waterfront estates as well as properties with excellent views and amenities. In 2016, 34 luxury homes sold in Northwest Vermont.

Waterfront properties

Half of the luxury sales in 2016 represented lakefront properties. The bulk of the waterfront sales were recorded in Chittenden County.

Time-to-market concerns

Some buyers are hesitant to commit to a purchase given the time required to market a luxury home. Professionals relocating to Northwest Vermont for a short period of time prefer to rent rather than buy.  Buyers with long-term ties to the area make up much of the demand in this market segment.

Market Insights

• The average luxury sale price stands at $1.26 million
• The typical high-end home required 238 days to market
• Inventory levels remain deep, providing plenty of options for buyers

The luxury market in Northwest Vermont offers more depth of inventory than mid-priced homes in the region, although high-end buyers looking for lakefront property in the $800,000 to $1 million range may find fewer choices than in previous years.   

Nevertheless, the luxury market remains tilted toward a buyer’s market, especially in higher-priced segments. Some homes require years of marketing before attracting a buyer, which has prompted sellers to become more flexible in their expectations.

Our Realtors note that high-end buyers are seeking either lakefront property or a significant view of the mountains or lake. Luxury properties without excellent views or waterfront access may have more difficulty in attracting buyers.

The luxury market is drawing buyers who want second homes in Vermont, as well as some professionals who work in the region or who are relocating because of lifestyle. Shelburne and Charlotte are among the towns that are popular with high-end buyers.

Waterfront properties

Buyers continue to seek properties with access to Lake Champlain, although the market has tilted toward Chittenden and Addison counties and away from Grand Isle. The three highest-priced sales were homes situated on the lake.

Inventory concerns

Because of the high inventory levels for homes priced above $800,000 and the time required to sell them, some buyers remain hesitant to commit to a purchase. Executives who are relocating to Vermont and may only remain in the state for a few years may be especially concerned about these trends.

Shift away from Grand Isle

Higher-end inventory in Grand Isle has been slower to attract buyers this year, possibly because of concerns about water quality. Blue-green algae blooms have been a risk in some areas, while the low water level in the lake this summer may be an issue as well.

Market Insights

•   The median luxury sale price stands at $1 million
•   Inventory levels remain deep, especially at higher price points

After a slow start to 2016, the luxury market picked up as warmer weather arrived.  During the first half of the year, the region recorded 18 sales of properties priced above $800,000.   

Unlike the mid-priced segment for homes below $400,000, the luxury market continues to have deep inventory. As a result, the luxury segment remains tilted in favor of buyers, with some homes requiring years of marketing before the right buyer becomes interested. Some sellers have lowered their price expectations as a result of these dynamics.

The Northwest Vermont real estate market currently provides an excellent variety of choices for high-end buyers, given the number of luxury lakefront estates and mountain homes that are now available. While Shelburne remains a popular location for luxury buyers, we have seen few sales over $800,000 in many surrounding towns including Burlington, Charlotte, Williston, and South Burlington.

Inventory Concerns

Because of the high inventory levels for homes priced above $800,000 and the time required to sell them, some buyers remain hesitant to commit to a purchase. Executives who are relocating to Vermont and may only remain in the state for a few years may be especially concerned about these trends.

Waterfront Properties

Buyers returned to waterfront properties this year. Almost half of the sales so far have included access to Lake Champlain. The three highest-priced sales represented homes situated on the lake.

Prepare for the Summer

As buyers continue to search for property this summer and fall, sellers should prepare their homes to be competitive in the luxury market. Competitive pricing and addressing deferred maintenance, landscaping issues, and decluttering remain essential.

Market Insights

•   The median luxury sale price stands at $987,000
•   Inventory levels remain deep, providing buyers with choice and negotiating leverage

The luxury market tends to slow down during the first quarter, and this year proved no exception. Because many of Northwest Vermont’s luxury properties are located on Lake Champlain, buyers often wait to begin their search until the late spring or summer months. 

Still, the luxury market witnessed a strong 2015, when the number of transactions for homes priced above $800,000 increased by 25%.

The luxury segment continues to be a buyer’s market, with some high-end homes requiring years before they find a buyer. Some sellers have also had to lower their price expectations given the market dynamics, which include a three-year inventory of homes listed for more than $800,000.

This is providing excellent choices for high-end buyers, ranging from waterfront estates, to neighborhood or city properties and mountain homes with large amounts of acreage and amenities, as well as the opportunity to negotiate a good price.

Inventory Concerns

Some prospective buyers are cautious about committing to property given the three-year inventory level. That’s especially true among executives who are relocating and may not remain in Vermont for more than two or three years.

Waterfront Properties

Last year saw a shift away from waterfront homes as buyers sought properties closer to Burlington and its vibrant cultural life. Still, two of the first quarter’s luxury sales were waterfront estates, signalling that buyers remain interested in such properties.

Prepare for the Summer

Since there’s so much competition in the over-$800,000 segment, sellers should prepare their homes for summer showings by making sure they are in excellent condition. That means attending to deferred maintenance, and landscaping.

Market Insights

•  Two of the first quarter’s luxury sales are waterfront estates.
• Winter tends to be a slower time for the luxury marketplace.

Luxury properties in Northwest Vermont span a variety of styles and locations, from classic Vermont farmhouses on mountain estates to award-winning modern properties perched on Lake Champlain.

Sales of properties above $800,000 picked up in 2015, with our Realtors noting that 2015’s luxury home sales represented an increase of more than 25 percent from a year earlier. Additional sales in 2015 may fuel future activity by providing market comparables that help support purchaser’s decision making and provide appraisers with current market sales.

Even with the increased activity, the luxury segment still remains a buyer’s market, given that our region has a three-year inventory of homes listed for more than $800,000. In Coldwell Banker Hickok & Boardman Realty’s experience, high-end homes can potentially require years to find a buyer, and many sellers have had to lower their price expectations. In some cases, luxury homes have sold below their assessed value.

While that isn’t heartening for sellers, it represents an opportunity for buyers, given the wide range of choices currently on the market and the potential to negotiate a lower price.

Inventory Concerns

Given the three-year inventory, some prospective buyers are increasingly cautious about purchasing homes in the above-$800,000 range, given that it may take them years to sell if they later decide to move. Senior executives who are more mobile are finding this to be a concern.

Resurgence of “In-Town” Properties

Buyers are increasingly looking for high-end homes that are close to Burlington and its amenities such as restaurants and the Flynn Center for the Performing Arts. Estates with mountain views and large acreage have also proved popular.

Pristine Condition

Given the choices available to luxury buyers, buyers are seeking properties with no deferred maintenance issues. Homes that show well – such as those that have been repainted recently, have no clutter, and excellent landscaping – are also performing better with buyers.

Market Insights

• Thirteen, or about 38%, of last year’s $800,00-plus home sales provided waterfront access.
• Almost two-thirds of the year’s luxury sales were located in Chittenden County.

Northwest Vermont’s luxury market encompasses a wide variety of options, ranging from waterfront property to Victorian mansions in Burlington.

This year has brought renewed activity for homes priced above $800,000, although this segment has been slower to recover than the market for mid-priced housing in Northwest Vermont. There is still substantial inventory available, refl ecting approximately a three year supply of homes.

The state’s relatively high property taxes might be discouraging second-home buyers from purchasing real estate in Vermont. While lakefront property has been a traditional pull with luxury buyers, our agents are also seeing increased interest in country properties, as well as homes that offer good values and are located near Burlington.

The luxury property market has been focused in Chittenden County so far this year, representing two-thirds of the over-$800,000 sales. Five sales were located in Addison County, while Grand Isle recorded three transactions.

A Shift to Country and City Estates

While waterfront property continues to be a draw for some buyers, country and city properties have dominated the market this year.

Close to Town

Buyers are particularly interested in high-end homes that are close to Burlington and its amenities, such as the University of Vermont Medical Center and its vibrant arts scene.

Waterfront Concerns

Concerns continue to linger after the floods after Tropical Storm Irene in 2011. Buyers are seeking properties with homes that are elevated above the lake, and with seawalls that are in good condition.

The luxury residential market in Northwest Vermont offers a range of spectacular properties, drawing buyers interested in waterfront estates, country properties, as well as stately city residences.

While our Agents are seeing signs of renewed activity in the luxury market, this segment has been slower to recover than the region’s mid-range housing. One reason may be Vermont’s relatively high property taxes, which may potentially dissuade vacation-home buyers from purchasing in the state. Below are a few trends that are impacting the market for homes above $800,000.

A Slower Pace

Sellers have readjusted their expectations for sales prices amid slower demand for high-end property. That means buyers may find excellent values among the region’s luxury properties, with some homes selling below assessed value.

City Living

Our Agents note that buyers are increasingly looking for high-end homes in or close to Burlington because of a desire to be near restaurants, the arts, and the University of Vermont Medical Center.

Waterfront Property

Buyers seeking waterfront properties are interested in homes with higher elevations and seawalls in good condition, given concerns about flooding.

Traditionally, the region’s waterfront properties have maintained a strong draw on luxury buyers. However, the first half of 2015 has seen a shift toward properties closer to town or with large acreage. Only four of this year’s sales included waterfront access.

Chittenden County represented the bulk of high-end sales, with nine transactions above $800,000. Four sales were located in Addison County, while Grand Isle recorded one transaction.

Northwest Vermont’s lakefront properties and country estates maintain a strong pull on high-end buyers, although this year’s below-normal winter temperatures may have slowed down some prospective buyers. With Vermont finally experiencing spring, our agents are seeing some signs of renewed activity. Both primary residences and vacation homes are popular with buyers seeking $1 million-plus properties.

During the past 12 months, nine $1 million-plus home sales were recorded. Two $1 million-plus sales were recorded in the first quarter, with both sales closing in March. The remaining seven luxury sales closed in the summer or fall of 2014.

Five of those properties included lakefront access, which is a traditional attraction for high-end buyers searching for homes in Northwest Vermont. The most expensive property was a $1.35 million estate in South Hero, located on 13 acres with 350 feet of shore access.

Seven of the past year’s luxury sales were located in Chittenden County, while one was recorded in Addison County’s Ferrisburgh. Grand Isle’s South Hero had one luxury sale, as noted above.

The most recent high point for the luxury market, in terms of number of sold properties, was in 2012, when 16 homes sold for more than $1 million.

The past two years have witnessed a slower pace of luxury sales, with sellers readjusting their expectations. At the end of March, there were 58 residential properties priced over $1,000,000 on the market in Chittenden, Addison, Franklin, and Grand Isle counties with 3 properties under contract. The inventory will increase over the spring and summer months. At this pace, it could take two years or more for the inventory to be absorbed by the market.

With a wide inventory available in the luxury market, many $1 million-plus homes require additional time to market than do mid-range homes. Current luxury inventory has been on the market for an average of is 338 days. Competitively priced properties may sell more quickly.