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Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$227,500 (+3.4%)	$256,259 (+4.0%)	705 (-3.0%)	798 (-3.0%)	82 (+7.9%)

If there is comfort in consistency, then rest easy about the real estate market. While other sectors of the U.S. economy have been erratic for the last few years, the real estate market has remained steady since 2015, and that is still the picture in northwestern Vermont.

The year 2017 ended as it started. Inventory remained tight, which caused steadfast price growth. The median price increased for each property type (single family, condos, multi-family, and land) in our four-county region, and the median price of a single-family home jumped by 4.5% to $277,000 compared to the end of 2016. The median condo price was up by 3.4%. These increases were due to declining inventory, which caused multiple-offer situations in some towns and drove prices upward.

Compared to the end of 2016, the median price of a single-family home jumped by: 4.2% (to $322,000) in Chittenden County; 5.3% (to $214,950) in Franklin County; 7.2% (to $260,000) in Addison County; and 9.9% (to $250,000) in Grand Isle County.

Closed sales, by units, were flat to down except in one area: Land sales showed a whopping 5.6% increase over 2016. Since 2015, new listings of single-family homes have dropped by 13%, while newly listed condos have dipped by 12% — evidence to the trend of people moving less; during this same time period, only new listings for land have increased in northwestern Vermont.

Developers know housing inventory is tight, and that new listings have declined, so they are looking at land for new construction. They also know that new construction enhances the economy — from the employment of workers to build it, through the lifespan of the home — and generates new property tax revenue. Developers are building multi-unit neighborhoods such as South Village and Hillside at O’Brien Farm, both in South Burlington, which offer homes for buyers in various price ranges, living various lifestyles. Market trends are showing that buyers — especially Millennials — want smaller, energy-efficient properties with low taxes and small footprints, near communities with amenities. The in-demand price range is currently $250,000-$350,000.

As we mentioned in our last report, if sellers are committed to selling in this market, our agents recommend sellers keep their property on the market year-round. Sellers typically take their homes off the market during winter, but a market with tight inventory also produces more motivated buyers.

Furthermore, the Federal Reserve is expected to raise the prime lending rate three times this year. Currently, it is just at 4% and is expected to be at 4.5% or 4.7% by the end of 2018, which will have a significant impact on the real estate market. A 1% increase in interest rate can reduce a buyer’s purchase power by approximately 10%. Coupled with another year of increasing median sales prices in the region, means buyers may want to consider purchasing early in 2018.

Whether you are a buyer or seller, be prepared. Buyers should consider a price point but be ready to be flexible in a competitive bidding process, if possible; and buyers should enter the shopping process with some level of pre-approval for financing with a local lender. Sellers should prepare their homes in advance for showings and inspections.

Buyers and sellers must first consider their personal situations. If buyers want to find a property in northwestern Vermont and plan to stay for a few years or longer, they will find something; and sellers should know those buyers are out there. Our thoughtful and creative Realtors are here to help make those connections for a successful closing, for everyone at the table.

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$228,500 (+3.9%)	$256,916 (+5.2%)	517 (-4.4%)	653 (-7.5%)	88 (+14.3%)

The ongoing story in the national and regional market is the contraction of inventory for sale, so perhaps it is remarkable that sales during the third quarter remained stable in northwestern Vermont, while inventory generally declined.

Third quarter (Q3) activity reflects properties that were put under contract in the spring, with ensuing closings in July, August and September. June is typically the top month for real estate closings, as new households form and consumers work around summer vacations to buy or sell a new home. However, over the past few years, sales have strengthened in Q3, which is evident in this report. A season of strong buyer demand this year likely contributed to a timing of transactions that produced a stable Q3.

In our 4-county region, including Chittenden, Addison, Franklin, and Grand Isle Counties, the number of single-family homes for sale in Q3 was 2,138, compared to 2,367 at this time last year — a decline in inventory. However, demand remained strong. In 2016, 714 single-family homes sold between July and September; 736 were sold in Q3 2017 — a rise in sales.

The inventory of single-family homes for sale in Q3 has dropped steadily (nearly 28%) since 2014, when there were 2,960 on the market in Q3. Meanwhile, the number of single-family homes sold has increased 24.5% during that same period. Despite a strong Q3 in terms of closed real estate transactions, the YTD number of single-family homes sold in our 4-county region has dropped by 1.7%, while the number of condos sold has lowered by 4.4% — likely a result of the continuing decline in inventory.

One national and regional trend contributing to lack of inventory is simply that Americans are moving less. According to data from the National Association of Realtors, homeowners are staying in their homes for 10 or more years, compared to a previous national average of seven years.

The tightening of inventory has generated a jump in sold prices. Year-to-date (YTD), the median sale price of a single-family home — with the median price being “half the houses sold for more and half sold for less” — has jumped 4.3%, while the sale price of condos has risen nearly 4%.

The demand for homes and a shrinking stock of inventory has created an unusual number of multiple-offer situations for buyers and sellers. Buyers should consider a price point but be ready to be flexible in a competitive offer circumstance. Buyers should also enter the home buying process with pre-approval for financing from a local lender. Sellers should prepare their homes in advance for showings and inspections.

On the lending side: Mortgage rates are still low — around 3.8% for 30 years — but the national inventory shortage and an unprecedented amount of college debt facing younger generations has slowed the rate of household formation for first-time homebuyers. New lending regulations and restrictions have also posed challenges for first-time homebuyers, while Baby Boomers who are downsizing can sometimes make cash purchases. Sellers and buyers should be aware of this trend when considering multiple-offers. Our thoughtful and skilled Realtors can help with the often speedy, whirlwind competitive bidding process.

In previous years, we have witnessed that homeowners with properties on the market tend to take them off the market in the fourth quarter during the holiday season. However, if sellers are committed to selling, our agents recommend they keep their property on the market through the winter, because this is when motivated buyers, who must move for any reason, such as job relocation — are looking for a new residence.

Our team of experienced Realtors are available to answer any of your questions about the real estate market and your specific circumstances. We look forward to working with you.

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$230,000 (+3.84%)	$259,399 (+7.78%)	313 (-5.72%)	416 (-7.96%)	100 (+20.48%)

The Mid-Year point is an important milestone for real estate trends.  We are in the midst of the traditional “height of the market” – when sellers opt to list their homes and buyers search in what historically would have been peak inventory levels of the Spring.  Closings on real estate sales surge in June, July and August in between the school year, vacations, new household formation and other life events that typically drive the market.  Our Mid- Year report will recap the inventory and sales of property during the 1st six months – and provide a snapshot of trends we may see in the Fall of 2017.

2017 has seen consistent buyer interest, however, the decline in available homes for sale has limited sales.

Units sold decreased during the first half of 2017 over the same period in 2016 while the sales are flat compared to the same period in 2015.
Over the past 3 years the number of single family homes available for sale during the 2nd quarter of the year (typically the height of the real estate season in Northwest VT) has declined from 2906 to 2206 – a 24% decline or 700 units less– while homes going “under contract” during the same period have increased by 151 units or 29% during the same period. This has shifted the market into the sellers’ favor especially in the sweet spot – the mid-priced range of $200,000- $400,000. One reason for this trend may be that sellers are living in their homes longer. According to the National Association of Realtors, the median tenure for sellers has increased to 10 years from a historical median of 5 to 7 years.

Newly listed, well-priced properties in good condition are selling quickly as savvy buyers search online and receive regular updates from their agents – ready to jump when the right property comes on the market. In some towns, the shortage of new listings coupled with buyer demand resulted in the absorption of listed properties that have been on the market for quite some time.

While both the median and average sold prices in single family and condos are showing increases, single family home prices appear to be more stable than the increases demonstrated in condos. In general, the increase in the average sold price of condos is a result of new construction projects at prices above the average and product mix versus appreciation of existing inventory.

In a recent Burlington Free Press article by Art Woolf, he noted that while Vermont’s population has declined slightly since the 2010 census – “Addison, Chittenden, and Franklin Counties have experienced growth over that period.” He further goes on to note that the fastest growing towns (by population) “are, in general, north of Burlington with easy access to I-89.” Our Market Reports over the past 2 years have reflected that trend as buyers searched outside of the Burlington area for more inventory and affordable home prices.

Land sales have stabilized after increased sales in 2016 as homeowners searched for alternatives while inventory was low. Many buyers have decided to “right size” their living accommodations with energy efficient, low maintenance newly built homes rather than purchase existing, older inventory that may need extensive renovations or are no longer meeting current needs or desires.

Mortgage rates are still historically low after a climb in late 2016 and some volatility during the first few months of 2017. Most predictions are that rates will remain steady for the remainder of the year. Any change to mortgage rates will affect buying power when affordability remains an issue. For example, an increase of .5% (one-half percent) in interest rate may reduce purchasing power approximately 5%. So, even though prices are rising slightly and inventory is limited, buyers who are serious about realizing their goal of homeownership this year should be ready to make an offer quickly – with the advice of their agent.

As always, it remains that both sellers and buyers need to reflect on their personal situation. We look forward to working with you to identify your next move.

Single Family
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$249,500 (+3.2%)	$282,469 (+1.6%)	350 (-10%)	652 (-19%)	110 (-6%)

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$247,650 (+20.8%)	$280,063 (+21.2%)	120 (-5.5%)	159 (-5.9%)	117 (+30%)

Historically the first three months of the year represent the slowest period for real estate sales in Northwest Vermont.  As the landscape changes with the arrival of spring and summer, so might real estate trends as more sellers and buyers enter the market.  Stronger-than-normal sales in the 1st quarter of 2016 coupled with tight inventory continuing into 2017 have resulted in a decline in year-over-year sales for the first quarter of 2017.

Tight inventory levels still continue to put pressure on the real estate market in Northwest Vermont. In the first quarter, fewer homeowners have chosen to put their homes on the market. Buyers may have fewer choices, especially in the sweet spot of housing – the mid-priced range of $200,000- $400,000. In addition, the National Association of Realtors reports the median tenure for sellers living in their home has increased to 10 years from a historical median of 5 to 7 years.

Over the past 3 years the number of single-family homes available for sale during the first 3 months of the year has declined from 2256 to 1680 – a 26% decline – while closed sales have increased 15% during the same period. The results are homes being on the market for fewer days and, in many cases, multiple offers driving the prices up with both the median and average prices showing increases during the first quarter. Our Realtors advise buyers to be well prepared to make strong offers, with their financing in order. In some circumstances, Agents are advising their buyers to look at homes priced lower than their threshold in the event of a multiple offer situation. In a fast-paced market, Sellers need the expertise of their Agent to help them navigate the incredibly complicated process of lining up a contract for a purchase as well as the contract for a sale of their current home.

While both the median and average sold prices are showing increases, single-family home prices appear to be more stable than the healthy increases demonstrated in the sold prices of condos. In general, the increase in prices of condos comes from new construction projects that have come on the market versus the appreciation of existing inventory.

Cities, towns, and developers have increased density in their planning and zoning strategies in order to preserve open green spaces. These Planned Unit Developments (PUDs), including condos and single-family homes, are becoming more popular as homeowners look to “right size” their lifestyle with housing options that provide ease of maintenance and, in some cases, affordability. New construction can be more energy efficient and many new communities offer amenities such as community gardens, walking trails, parks, and proximity to conveniences.

Mortgage rates are being watched closely. After a climb in late 2016 and some volatility during the first 2 months of 2017 – many predictions are that the rates will remain steady for the remainder of the year. Changes to mortgage rates can affect buying power when affordability remains an issue. For example, an increase of .5% (one-half percent) in interest rate may reduce purchasing power by 4-5%. So, even though prices are rising slightly and inventory is limited, buyers who are serious about realizing their goal of homeownership this year should be ready to make an offer sooner – with the advice of their Agent.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your Agent – you can make an informed decision about your next move.

The landscape of Northwest Vermont‘s property market continues to show healthy growth, with prices and sales rising at sustainable rates. Our market is likely to continue to see similar trends within the next year, given growing local and national economies and historically low mortgage rates.

Northwest Vermont’s real estate market ended 2016 on a high note, yet some headwinds bear careful watching in 2017. Home sales rose 3.7% last year, while the average sale price increased 3.8%, representing our region’s recent history of moderate and sustainable growth.

Our market is likely to experience similar trends in 2017, although there is one issue that could constrain Northwest Vermont’s property markets in the coming year: tight inventory levels. Because fewer homeowners are placing their properties on the market and construction of new homes continues to be limited, buyers are faced with fewer choices, especially in the sweet spot of housing in the mid-priced range of $200,000 to $400,000.

According to The National Association of Realtors, in 2016 the median tenure for sellers living in their home was 10 years versus the historical median of 5 to 7 years.

Inventory is particularly tight in many high-demand towns, including Burlington and Winooski, which is pushing some buyers farther afield as they search for affordable homes. The on-hand inventory supply in Chittenden County has dwindled to about 3 months, compared with 10 months in 2015.

Sales for homes priced above $600,000 are starting to pick up, yet inventory in the higher-end segment generally remains plentiful, providing these buyers with more choices.
As a result, the average sale price jumped in each of the four counties tracked by this report. Franklin County, which represents the lowest price point in the region, witnessed the largest increase, with the average sale price rising almost 8%.

Relocating buyers moving to the area continue to buoy our market, thanks to growth in the health care and emerging technology sections. The unemployment rate stood at 3.2 percent in November, giving the state one of the country’s lowest jobless rates.

Several other economic issues may play into our region’s real estate market in the coming year. Foremost among those are interest rates, with the Federal Reserve boosting its key interest rate by 0.25% in December. The Fed has signaled that it plans an additional three rate hikes in 2017. Because those increases will cause mortgage rates to inch up from their historic lows, we believe mortgage rates will be in the 4.75% range by year-end.

Affordability remains an issue that is attracting the attention of lawmakers and advocates, given the difficulty of finding housing for low and middle-income workers. Home prices and rents have increased at an annual rate that has surpassed wage growth, creating a budget crunch for many Vermonters.

The National Low Income Housing Coalition found that a modest two-bedroom apartment in Vermont requires income of almost $44,000, which is out of reach for many in the state. Builders are constructing more rental units, although housing advocates say even more are needed.

As part of a buyer’s due diligence, we recommend that they discuss the potential impact of Act 46, the education governance reform law passed last year that calls for larger school districts. We advise our clients to contact their local lawmakers and school board members to provide more information on how the law could impact local communities, as some are now evaluating school mergers.

Despite inventory concerns, buyers have high expectations for properties. Homes that require significant work or updating may linger on the market. Before listing, we recommend taking care of deferred maintenance and considering “smart home” upgrades such as Nest’s thermostat or lighting features. These touches are especially appealing to millennial buyers, who represent the largest share of first-time homebuyers.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your agent – you can make an informed decision about your next move.

Chittenden County

• Chittenden County Inventory levels tightened in 2016, as fewer homeowners put their properties on the market.
• Demand from buyers remains strong, especially for mid-priced and affordable homes in desirable neighborhoods.
• The average sale price rose 4% last year, while the number of transactions was little changed due to lower inventory levels.
• The county’s months of on-hand inventory has dwindled to slightly more than three, compared with almost 10 months in January 2015 – creating a Seller’s market in some price points

Franklin County

• Because Franklin County has the lowest average sale price in Northwest Vermont, some homebuyers are turning to the county as they seek more for their money.
• Towns close to I-89, such as Georgia, have particular appeal to buyers, given the easy commute into Chittenden County.
• St. Albans City and St. Albans Town are seeing a resurgence in buyer activity with the revitalization of the City noted as a draw.

Grand Isle County

• Grand Isle County offered more affordable lakefront with rural feel versus parts of Chittenden County.
• A few sales can have a big impact on average sale prices or volume because the property market is relatively small.
• Grand Isle had an 83% Boost in land sales – to 22 parcels sold in 2016.

Addison County

• The average sale price in Addison County rose 4.7% last year yet the number of sold units was little changed.
• Inventory levels have declined, although not quite to the degree seen in Chittenden County.
• With its easy commute into Burlington and surrounding towns, Ferrisburgh proved popular with buyers in 2016.
• Cities like Vergennes and Bristol, with charming character, restaurants, and services also offer affordable opportunities.

The landscape of Northwest Vermont‘s property market continues to show healthy growth, with prices and sales rising at sustainable rates. Our market is likely to continue to see similar trends within the next year, given growing local and national economies and low mortgage rates. 

One issue continues to shape the property market in our region: tight inventory levels. Popular locations such as Burlington are still struggling to meet demand from buyers, with fewer homeowners opting to sell their properties during the first nine months of 2016 than in the previous years.

The tight inventory levels are also boosting home prices, especially for sought-after towns in Chittenden County. As a result, some buyers in the market for homes below $350,000 are extending their searches into neighboring counties with more affordable price points, such as Addison and Franklin counties.

With those dynamics in play, it may be no surprise that the median sale price rose in each of our region’s four counties. Median sale prices increased 3% across the region, while the number of sold units rose a healthy 4%.

Local businesses including transportation broker A.N. Deringer Inc. and institutions such as the University of Vermont Medical Center are continuing to hire. New professionals continue to relocate to our region, spurring demand for both residential properties and rental apartments. The unemployment rate in Vermont stood at 3.3% in August, among the lowest in the country.

Still, several economic concerns may be making consumers feel less confident, at least for the moment. Consumer confidence slipped to a 2-year low in early October, with the pending presidential election prompting some unease among consumers.

Concerns about the strength of the U.S. and international economies have prompted the Federal Reserve to postpone interest rate increases. Borrowers currently are enjoying record-low mortgage rates as a result, although economists believe the Fed will institute rate hikes later this year or in early 2017.

As part of a buyer’s due diligence, we recommend that they discuss the potential impact of Act 46, the education governance reform law passed last year that calls for larger school districts, school board members and local lawmakers. The law is prompting some communities around the state to evaluate school mergers. We find all our local schools are open to providing consumers with the information they need to make good choices.

Despite inventory levels, our Realtors note that buyers are increasingly choosy about properties. Well-priced homes in good condition are selling quickly, but homes that need renovation work may take longer to sell. Before listing, sellers should turn their attention to deferred maintenance and consider “smart home” upgrades such as Nest’s thermostat, which can help make your home stand out.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your agent – you can make an informed decision about your next move.

Chittenden County

• Tight inventory levels in the region’s most active real estate market are leading to higher home prices while moderating the number of residential sales.
• Through September, the number of home sales was unchanged, while the median sale price rose 4%.
• Buyers on the hunt in the $200,000-300,000 price range may find it challenging, especially as new home listings declined by 8% and 25%, respectively, in Chittenden County and its biggest city, Burlington.
• The property market has about 7 months of available inventory, down from about 9 months a year earlier.

Franklin County

• Home buyers are turning to Franklin County as an alternative to higher-priced Chittenden County and as local employers such as A.N. Deringer ramp up hiring.
• While new listings have declined by 10% from a year earlier, the county has more than 11 months of available inventory.
• The number of sold listings jumped 22% for the first nine months of 2016, while the median sale price rose 7%.
• Properties located near I-89 are selling at higher price points and more quickly than those located in the eastern section of the county.

Grand Isle

• Towns such as South Hero are popular with second-home buyers and professionals who commute into other Vermont counties.
• Grand Isle’s median sale price rose 10%, while the number of sales rose 2%.
• About 20 months of inventory remains available, more than any other county.
• Because Grand Isle is Northwest Vermont’s least active county for real estate transactions, a small number of sales can have a relatively large impact on pricing trends.

Addison County

Homebuyers are turning to Addison County as an alternative to higher-priced Chittenden County. Retirees and professionals are seeking out lakefront and mountain-view properties for second homes.

• While the number of residential sales is unchanged from a year earlier, the median sale price has increased 4%.
• The county has more than 1 year of available inventory, little changed from a year earlier.

After a strong 2015 real estate market in Northwest Vermont, one question on many homeowners’ and buyers’ minds is whether those trends will continue into 2016.

So far, demand and pricing hint toward another solid year, although with a caveat: since the first three months of the year represent the slowest period for our market, the trends may not be clearer until sales pick up during late Spring and Summer.

Nevertheless, demand was strong in the first quarter, with residential transactions jumping by 10 percent. Median sale prices were little changed, which may indicate a shift to lower-priced properties during the winter months.

Many economic trends in our area remain strong. Local businesses such as Dealer.com and institutions such as University of Vermont and Medical Center continue to hire, bringing new professionals to the region. Technology start-ups are thriving and attracting out-of-state mid-career professionals, as well as hiring graduates from colleges such as UVM and Champlain College. Vermont’s unemployment rate was 3.4 percent in February, one of the lowest rates in the country.

The millennial generation, which is on track to become the country’s largest home-buying demographic within the next few years, is emerging as first-time buyers, thanks to record low-interest rates and relatively high rents, which makes home-buying a more attractive alternative. A Coldwell Banker Hickok & Boardman Realty survey last year that found 37% of our clients had just purchased their first home, close to the typical 40% of the market.

Federal Reserve chairwoman Janet Yellen has said the central bank will raise interest rates “cautiously” this year. As a result, mortgage rates remain at near-record lows.

One issue facing our market is affordability, especially within Chittenden County. Buyers are responding to those pressures, with some seeking housing in lower-cost counties such as Franklin County. Within Chittenden County, buyers are most interested in the $250,000 to $350,000 price range, which is especially true for first-time millennial homebuyers. Inventory for reasonably priced housing in Chittenden County remains tight.

Along those lines, Vermont’s housing ranks among the most expensive in the country, although incomes haven’t seen the same gains. That gap between income and housing prices means that many professionals in our region are financially squeezed, which could provide a headwind to the property market.

The impact of Act 46, the education governance reform law passed last year that calls for larger school districts, continues to evolve. We advise homeowners and potential buyers to consider the impact and reach out to their Realtors, local lawmakers and school board members for more information. For instance, some towns are discussing school mergers, which could impact some buyers and sellers.

As always, well-priced homes in good condition tend to see strong demand from buyers. Sellers should consider upgrades to their homes that would make them more attractive to potential buyers, ranging from taking care of deferred maintenance to installing “smart home” technology, such as Nest’s thermostat, to help your property stand out.

Coldwell Banker Hickok & Boardman is forecasting continued steady growth in pricing and sales for 2016. Based on current trends, we believe sales volume may rise about 6 – 8 percent, while pricing could gain about 1% to 2%, or similar to the national forecast from the National Association of Realtors.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your agent – you can make an informed decision about your next move.

The local economy continues to be healthy, lifted by hiring at employers including Dealer.com and University of Vermont, while industries such as healthcare, technology, and education remain vibrant. Dozens of technology start-ups are hiring and attracting mid-career professionals from out of state, as well as hiring graduates from local colleges such as Champlain College and UVM.

The unemployment rate in Vermont stood at 3.7 percent in November, one of the lowest in the country. Our region’s jobless rate was even lower, with Chittenden County’s unemployment rate reaching a 15-year low of 2.5 percent during the same month.

Millennials are entering the property market, with that generation on track to become the country’s largest home-buying demographic within the next few years, according to real-estate data service Zillow. In Vermont, younger consumers are emerging as first-time buyers, thanks to record low interest rates and relatively high rents, which makes home-buying a more attractive alternative. A Coldwell Banker Hickok & Boardman Realty survey last year found 37% of our clients had just purchased their first home, close to historic rates of 40% for first time buyers.

While the Federal Reserve increased short-term interest rates in December, the central bank has signaled that future rate hikes will be incremental. Mortgage rates may reach between 4.7% to 5% by year-end, compared with below 4% currently, according to the National Association of Realtors. Mortgage rates remain historically low, and our Realtors haven’t noted any impact on housing demand from the Fed’s move.

Housing in the $250,000 to $350,000 range remains the sweet spot in our market, especially given the emergence of first-time millennial homebuyers. Property in the over-$500,000 range, however, can take longer to sell, and inventory in the upper ranges has been growing because of affordability issues. The luxury segment, or properties priced above $800,000, now has a three-year supply of inventory.

While the overall property market remains stable, there are a few issues that bear noting, including rising concern over affordability and property taxes. Vermont’s housing ranks among the most expensive in the country, but incomes in the state remain relatively low, creating a financial crunch for some buyers and property owners. Vermont also has one of the highest property tax burdens in the country, according to the Tax Foundation. Legislators are taking action intended to support quality outcomes for students and make costs more sustainable.

Homebuyers and property owners are advised to keep an eye on Act 46, the education governance reform law passed last year that calls for larger school districts. That could impact some towns in our region, such as Essex, Essex Junction and Westford, which late last year voted to consolidate into one school district. It is important for homebuyers to reach out to school administrators in the town they are considering with any questions. We find public and private schools have always welcomed conversations with perspective families considering a move to the area.

The National Association of Realtors forecasts a median price increase of 4% to 5% and existing home sales rising 1% to 2% in 2016.

 

Locally, Coldwell Banker Hickok & Boardman Realty is forecasting continued steady growth in pricing and sales for 2016, after last year’s 12% gain in residential transactions and 3.4% boost to the region’s median sale price.

As for sellers preparing their home for sale, Coldwell Banker Hickok & Boardman Realty recommends taking care of deferred maintenance issues prior to listing. Also, consider installing new “smart home” technology. These devices are relatively affordable, and consumers are increasingly embracing the technology, according to a joint survey from Coldwell Banker and technology site CNET. On top of that, smart devices such as Nest’s thermostat can help save money by conserving power and water, which will make your home even more appealing to buyers.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your agent – you can make an informed decision about your next move.

As the fall months arrive, Northwest Vermont’s property market is continuing to witness healthy real estate demand.

With the local economy continuing to grow and interest rates remaining at historically low levels, buyers are returning to the market, including an influx of first-time homebuyers. That has lifted residential home prices between 2% to 3% so far in 2015, which is representative of the type of healthy sales gains that were typical before the recession.

The region’s employment outlook remains healthy, thanks to hiring by local businesses such as Dealer.com and the University of Vermont. In August, the unemployment rate in Vermont stood at 3.6%, one of the lowest in the country. Economists at the Vermont Economic Outlook conference have forecast that 1,500 new jobs will be created in the state this year.

Those trends are bringing first-time homebuyers back into our market, especially as younger professionals seek to gain a foothold in the property market. The millennial generation, which now stands as the largest generational group in America, is expected to become the country’s biggest home buying demographic within the next five years, according to real-estate data service Zillow.

In the Northwest Vermont market, our agents are already seeing younger first-time homebuyers enter the market. A survey earlier this year of Coldwell Banker Hickok & Boardman Realty clients found that 37% had just purchased their first home, which is approaching typical levels of 40% of the market. On a national basis, the percentage of first-time homebuyers stood at 33% last year.

Economists now consider it less likely that the Federal Reserve will start raising interest rates this year, following a disappointing national jobs report in October. If the Fed opts out of boosting rates, it’s likely that mortgage rates will remain near historic lows for several more months.

Despite the solid outlook for our region, the property market is facing a few problematic issues, including affordability and rising property taxes. Residential property in the region remains expensive compared with wages, and increases in taxes have added to buyers’ concerns.

Despite those headwinds, Coldwell Banker Hickok & Boardman Realty is forecasting continued incremental growth in housing prices and steady demand for the remainder of 2015 and into 2016. For the first nine months of this year, the median sale price for residential property increased 2.9%, while the number of unit sales jumped 13.7%. That marks an improvement over 2014, when unit sales and pricing was little changed.

As always, it remains that both sellers and buyers need to reflect on their personal situation. It is increasingly important that you utilize the local knowledge within this report and the advice of your agent – to make an informed decision about your next move.

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Coldwell Banker Hickok & Boardman Realty is forecasting continued incremental growth in housing prices and steady demand for the remainder of 2015 and into 2016.

The resurgent Northwest Vermont real estate market continued to demonstrate healthy pricing and demand during the third quarter, after a strong spring and early summer. Sales jumped 13.7% during the first nine months of 2015, with each of the region’s four counties recording more residential transactions than a year earlier. Across the four counties tracked in this report, the median sale price rose 2.9%.

The type of healthy sales and pricing trends that were typical before the recession are returning to our region in 2015, thanks to a rebounding local economy, historically low interest rates, and a new influx of first-time home buyers.

With growing local businesses such as renewable-energy systems company NRG Systems and MyWebGrocer, the region’s employment outlook remains healthy. Professionals continue to relocate to Northwest Vermont in search of new opportunities. The unemployment rate in Vermont stood at 3.6% in May, or almost two percentage points below the national average for the same month.

In addition to new hiring, our region’s housing market benefited from the positive outcome for IBM’s former Essex Junction semiconductor plant, with GlobalFoundries completing its purchase of the chip business in July. The uncertainty about the plant’s future, which employs about 4,000 workers, was lifted, bringing buyers and sellers back into the market.

One measure of the market’s health is the resurgence of first-time homebuyers. A recent survey of our clients found that 37% had just made their first home purchase. Last year, the percentage of first-time homebuyers on a national basis fell to 33%, from a typical level of 40%. Our market may have room to grow as more renters opt to make their first home purchase in the coming years.

Interest rates remain near historic lows, although the Federal Reserve is expected to begin raising rates incrementally later this year. This will likely push up mortgage rates slightly by the end of 2015, which could bring more buyers into the market as they seek to lock in rates before they rise even higher.

Northwest Vermont is facing some headwinds, however. These include affordability issues, given the region’s relatively expensive housing market and lagging wage growth. Rising property taxes have added to affordability concerns for both mid-range and high-end buyers.

Despite those pressures, housing demand and pricing were strong in the first six months of 2015. Median sale prices rose 5.7% across our region’s four counties, while the number of transactions jumped 13.7%. All four counties recorded higher transaction levels than a year earlier. By comparison, unit sales and home pricing was little changed in 2014.

The National Association of Realtors predicted in its July outlook that national sales of existing homes will rise 6.5% this year, with prices almost gaining 7%. Our view at Coldwell Banker Hickok & Boardman Realty calls for more tempered growth, with a 5% rise in sales volume and moderate price gains.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your Agent – you can make an informed decision about your next move.

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After an abnormally cold winter that caused some consumers to delay their real estate plans, summer has brought a resurgence in home-buying activity. Sales jumped 13.7% during the first six months of the year, with more residential properties selling in each of the four counties than a year earlier. Across the four counties tracked in this report, the median sales price rose 5.7%.

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Chittenden County

The real estate market in Vermont’s most populous county picked up speed following an already strong 2014. The number of unit sales jumped 18.1%, with Burlington, Winooski and Essex among the towns recording significantly higher activity. Median sales pricing rose 6.2% compared with a year earlier.

Franklin County

After a slow end to 2014, sales and pricing rebounded in Franklin County, which is attractive to some buyers because it offers a lower price point than neighboring Chittenden County. Lower gas prices have made living in the county a more economical option for commuters. Sales volume rose 1.4 percent, while median pricing jumped 5.4%.

Grand Isle County

While sales volume picked up in the first half of the year, median pricing slipped 13.4%. Buyers may have been searching for lower-priced housing, while the county recorded fewer luxury sales than is typical. It’s important to note that as Grand Isle is Northwest Vermont’s least active county for real estate transactions, a small number of sales can have a relatively large impact on pricing trends.

Addison County

An improving economy and lower gas prices helped boost sales in Addison County. Property sales rose 10.8% during the first six months of the year, while the median sale price rose 7.3%. Middlebury, the most active town for sales, saw pricing gains of 3%, while Cornwall and Hancock recorded four luxury sales of properties above the $800,000 mark