Vermont Mortgage Update

Ranjit “Buddy” Singh, NMLS 92046
[email protected]

Julie Thorpe NMLS# 92216
[email protected] 

There was positive news for mortgage rates which ended 2023 at the low 6% range as the market cheered lower inflation. Rates have moved slightly higher since then, as there are questions with the size, timing, and quantity of Fed rate cuts in the coming year. Freddie Mac expects rates to remain in 6-7% range for 2024, higher than other industry and market participants are estimating. Historically, there have been momentary dips in mortgage rates based on reactions to economic data so it is important to have a very responsive and attentive mortgage representative who has access to live markets this year.

We saw notable changes in the lending environment in 2023. As a recap, FHA ended life of loan mortgage insurance for buyers with 10% down. Fannie Mae added a 5% down payment option for qualified borrowers on 2-4 unit primary residence. This indicates Fannie Mae’s understanding that many homebuyers are priced out of this market, and the income from a multi-unit property provides a path to homeownership. We also saw changes in loan level price adjustments for first time home buyers to offset the rise in rates.

We saw other trends in 2023 that have helped homebuyers access the American dream. There was an increase in borrowers using cosigners, having larger down payments and receiving gifts from family members to make homes more affordable. Multiple homebuyers combining resources to qualify for a multi-unit instead of renting has also become more popular. This strategy increases buying power and helps bolster each partner’s long term financial planning goals.

The mortgage “lock in effect,” where homeowners are locked into a rate lower than 4%, will continue to strain inventory. This creates a reduction of both buyers and sellers, as current homeowners are reluctant to sell and find a different home at a higher rate. Any reduction in mortgage rates should help alleviate some of this log jam.

Forecasting into 2024, we will most likely be seeing more programs become available as lenders adjust their guidelines and overlays to accommodate buyers and adjust for a continued seller’s market. There continues to be a need to bring new buyers into the housing market by some non-traditional paths. Educating another generation of homeowners on these new programs and developments will be of paramount importance. Continued outreach and education will strengthen the industry’s ability to keep opening doors for Vermont homeowners.

 

Spruce 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

Chittenden County Market Results

Chittenden County Home for sale
71-73 Highlands Drive Williston VT ~ Gorgeous 2,000+ sf home, woodworking shop with bathroom, & separate 2+ garage on 3 acres with mixed use zoning.

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$550,000 +7.8% $610,596 +3.1%967 -14.6%1,110 -11.4%25 +31.6%

Condos January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$370,500 +5.6% $414,177 +6.0%501 -22.1%570 -11.4%22 +10.0%

Chittenden Median Sale Price by TypeWhile prices for single-family homes have increased across the county by 42% since 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. Although buyer demand remained strong, a drop of 11% in new listings resulted in a decline of closed sales. 

Some buyers, many who paused searches due to rising interest rates, will reenter the market this spring to face competitive offers. This is more frequent in the more affordable price ranges. The decline in new listings is predicted to moderate as lifestyle factors encourage many sellers to maximize gains and make long delayed moves.

Several new construction projects in the county neared completion in 2023 which affected the new inventory coming to market as well as the number of closed sales. In the spring, Hillside East in South Burlington introduced one of the nation’s first 100% fossil fuel and carbon-free, climate resilient neighborhoods. With construction well underway, and more than a dozen homes scheduled for completion and closing by this summer, a variety of single-family homes and townhomes are available for reservation in the already established community.

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.

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Chittenden County Single-Family$550,0007.80%967-14.60%111011.10%25
Bolton$521,000-14.00%8100.00%90.10%18
Burlington$565,0008.70%142-25.70%1581.60%27
Charlotte$852,50021.80%28-31.70%370.40%34
Colchester$497,5002.70%108-1.80%1431.40%25
Essex$485,0007.80%134-26.00%1391.40%28
Hinesburg$578,50019.30%30-30.20%360.40%14
Huntington$446,00033.20%6-72.70%70.10%12
Jericho$548,00011.80%4014.30%540.50%15
Milton$454,7509.10%9419.00%1001.00%36
Richmond$705,00041.40%254.20%280.30%17
Shelburne$725,000-5.20%57-32.90%650.70%29
South Burlington$632,4504.50%1454.30%1671.70%19
St. George$681,00069.50%775.00%50.10%53
Underhill$620,00015.20%2920.80%330.30%17
Westford$584,00038.10%14-12.50%190.20%10
Williston$608,0000.90%73-27.00%820.80%32
Winooski$375,0003.30%27-20.60%280.30%16

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Chittenden County Condo$370,5005.60%501-22.10%570-11.40%22
Bolton$283,0009.40%5-50.00%6-45.50%4
Burlington$369,250-7.70%90-32.30%97-32.20%21
Charlotte$620,00067.60%10.00%2100.00%0
Colchester$373,50013.20%54-22.90%55-14.10%22
Essex$365,0007.40%85-20.60%1011.00%11
Hinesburg$290,000-27.70%3-70.00%4-63.60%4
Jericho$375,00028.60%5150.00%8700.00%6
Milton$345,00026.40%2353.30%3545.80%126
Richmond$355,0004.40%1-50.00%1-50.00%7
Shelburne$599,46639.40%2821.70%2833.30%50
South Burlington$340,0003.00%130-33.70%148-22.10%13
Williston$435,0004.80%55-6.80%600.00%16
Winooski$365,0001.10%2140.00%2566.70%12

Addison County Market Results

Two Homes being sold together in Ferrisburgh Vermont
46 & 58 Riverview Street, Ferrisburgh, VT ~ This exceptional property has 2 homes nestled on the banks of Otter Creek with Lake Champlain access.

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$404,000 +3.9% $490,373 +6.8%278 -8.9%319 -7.5%30 -6.3%

Condos January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$325,000 +5.7% $361,542 +2.0%18 0.0%20 +53.9%22 -8.3%

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 27 units, while the number of new listings on the market dropped by 26 units.

The median sale price increased by nearly 4% in 2023, with a cumulative increase of 42% since 2020. Panton, Leicester, Weybridge, and Cornwall posted significantly higher median sale prices than the county median of $404,000.

Middlebury, Bristol, Ferrisburgh, Monkton, Orwell, and Vergennes proved the most popular with the greatest number of sales, however far fewer new listings as compared to last year.

With a small number of transactions in many towns, the data can show dramatic swings in one direction or the other.

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Addison County Single-Family$404,0003.90%278-8.90%319-7.50%30
Addison$514,5003.40%10-37.50%12-36.80%70
Bridport$300,0003.50%1157.10%1677.80%13
Bristol$394,0001.30%28-9.70%32-3.00%21
Cornwall$565,000-10.30%1427.30%140.00%35
Ferrisburgh$490,000-14.90%26-7.10%30-3.20%22
Goshen$192,035-48.10%3-25.00%6200.00%64
Granville$144,000-56.10%4-33.30%4-20.00%46
Hancock$290,00028.90%566.70%6100.00%40
Leicester$526,50075.50%12-20.00%11-38.90%52
Lincoln$495,00028.00%6-66.70%9-55.00%22
Middlebury$400,0008.80%39-15.20%41-22.60%24
Monkton$424,900-6.60%17-22.70%21-8.70%8
New Haven$493,7508.50%12-14.30%14-17.70%33
Orwell$294,500-25.40%1838.50%1926.70%40
Panton$1,906,500515.00%5-44.40%6-33.30%3
Ripton$306,000-36.30%5400.00%4300.00%116
Salisbury$510,00022.90%9-18.20%1660.00%35
Shoreham$390,000-9.10%11120.00%1344.40%25
Starksboro$395,00046.30%1362.50%1344.40%22
Vergennes$345,0007.50%18-25.00%19-29.60%27
Waltham$499,500-21.20%4300.00%4100.00%9
Weybridge$533,50018.00%6-25.00%7-46.20%41
Whiting$335,9753.50%2-50.00%2-33.30%5

Franklin County Market Results

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$352,000 +6.7% $366,898 +7.1%451 -18.4%542 -12.3%36 +16.1%

Condos January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$285,000 -3.4% $300,935 -3.5%37 -17.8%56 +40.0%12 -67.6%

With a median sale price of $352,000, Franklin County remains the most affordable county in this report. Not only is it easily accessible to I-89, but Franklin County offers a variety of property types such as single-family, condos, multi-family, and land for buyers to consider. The robust downtown in St. Albans compliments the quintessential Vermont lifestyle offered across the rest of county. 

In addition to St. Albans posting the highest number of sales – Fairfax, Georgia, and Swanton posted the largest number of sales coupled with strong increases in median sale prices indicating that these towns remain attractive to buyers.

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Bakersfield$357,50019.20%6-60.00%10-9.10%34
Berkshire$287,750-3.10%12-14.30%13-13.30%83
Enosburg$260,000-6.10%23-28.10%34-12.80%64
Fairfax$477,50017.90%550.00%52-22.40%26
Fairfield$262,000-30.60%1137.50%1770.00%32
Fletcher$405,000-4.70%90.00%1137.50%11
Franklin$265,000-20.30%11-38.90%16-38.50%94
Georgia$439,50011.30%41-30.50%42-33.30%24
Highgate$317,5005.10%28-30.00%30-31.80%79
Montgomery$345,00013.10%19-24.00%278.00%30
Richford$210,000-11.40%2920.80%400.00%63
Sheldon$340,00012.60%15-11.80%18-10.00%18
St. Albans$340,0000.00%119-20.70%140-7.90%20
Swanton$330,00010.00%73-16.10%92-6.10%36

Grand Isle County Market Results

4 Pike Circle, Unit 4PK, South Hero, VT ~ This beautiful cottage is embraced by a peaceful wooded backyard that neighbors the resort’s golf course at Apple Island Resort!

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$423,000 +7.8% $598,858 +23.9%106 -23.2%145 -6.5%29 -25.6%

Condos January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$425,000 -6.6% $425,000 -6.6%1 0.0%1 -80.0%7 -74.1%

With only 106 single-family homes sold in 2023, the data for Grand Isle County can be affected by smaller shifts in sales and homes coming on the market. While the number of homes sold dropped 23%, this is not a reflection of demand, but a result of the shortage of new listings. A median sale price increase of almost 8% is on par with the rest of northwest Vermont. Further, the average number of days on the market of 29 seems to indicate that buyers are ready, willing, and able to make a move when the right property becomes available.

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Grand Isle County Single-Family$423,0007.80%106-23.20%145-6.50%29
Alburgh$345,00027.80%31-34.00%45-4.30%44
Grand Isle$505,00018.80%27-6.90%349.70%32
Isle La Motte$380,00014.60%157.10%19-13.60%27
North Hero$600,00039.60%19-34.50%23-28.10%12
South Hero$754,00019.70%14-26.30%244.40%13

Lamoille County Market Results

Perhaps most known for its mountains, Lamoille County is home to Stowe Mountain Resort and Smuggler’s Notch Resort.

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$512,500 +16.7% $748,400 +14.2%230 -22.0%312 +3.1%42 -6.7%

Condos January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$539,000 +19.8% $869,544 +44.2%94 -20.3%119 +1.2%87 +40.3%

Driven by the staggering median sale price of $1,160,000 in Stowe, Lamoille County has the 2nd highest median sale price across the counties in this report. Buyer demand, coupled with a varied product mix, drove prices 17% higher for single-family homes and 20% for condos. Despite mortgage interest rates pausing buyers in other parts of the region, vacation, and luxury buyers, mostly paying cash, did not wait on the sidelines in Lamoille County. In addition to Stowe, Cambridge and Morristown posted the greatest number of both single-family homes and condos sales in the county.

 

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Lamoille County Single-Family$512,50016.70%230-22.00%3123.10%42
Belvidere$420,00020.00%33.00%4-60.00%31
Cambridge$402,25011.70%3232.00%34-24.40%27
Eden$337,50032.40%1414.00%2315.00%88
Elmore$560,00026.60%44.00%50.00%35
Hyde Park$405,70023.90%2121.00%21-44.70%36
Johnson$341,0009.10%1717.00%290.00%56
Morristown$436,5002.50%4444.00%70-15.70%38
Stowe$1,160,42917.20%7777.00%101-6.50%44
Waterville$242,000-13.60%55.00%70.00%15
Wolcott$365,00016.80%1313.00%180.00%42

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Lamoille County Condo$539,00019.80%94-20.30%1191.20%87
Cambridge$250,000111.90%1313.00%18-21.70%163
Morristown$280,00011.10%55.00%566.70%8
Stowe$737,00030.40%7676.00%96-16.50%79

Washington County Market Results

255 Upland Mowing Road, Waterbury, VT ~ Modern, quintessential Vermont style! A perfect blend of comfort & country charm in this Waterbury farmhouse.

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$380,000 +19.6% $452,715 +16.8%467 -23.9%576 -10.1%30 -3.2%\

Condos January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$305,000 +9.1% $356,522 +1.1%98 -10.9%114 -4.2%24 -11.1%

Home to the state capital of Montpelier, with Barre being the most populous municipality, the Washington County real estate market is robust and varied. A drop of 10% in homes available for sale failed to meet buyer demand resulting in a 24% decline in closed sales. As a result, the median sale price jumped by nearly 20%. In July, parts of the county sustained damage due to flooding from severe storms. Homes and businesses cleaned up with some, but not all, hoping to rebuild.

Warren, Fayston, and Waterbury posted median sale prices far above the county average of $380,000 largely driven by the vacation and luxury home markets. Barre and Montpelier posted the most closed sales because of the higher population and number of primary residences.

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKET
Washington County Single-Family$380,00019.60%467-23.90%576-10.10%30
Barre$290,00013.70%135-40.00%166-24.20%32
Berlin$375,0007.10%19-29.60%24-7.70%14
Cabot$305,000-6.20%11-26.70%170.00%61
Calais$502,50043.60%1828.60%2875.00%21
Duxbury$450,00037.20%9-25.00%1025.00%62
East Montpelier$405,000-4.70%16-30.40%234.60%8
Fayston$655,00012.00%1911.80%2053.90%12
Marshfield$370,00033.30%9-35.70%11-26.70%30
Middlesex$412,0008.50%10-28.60%110.00%15
Montpelier$460,50019.60%700.00%70-9.10%35
Moretown$375,000-12.80%10-23.10%150.00%20
Northfield$317,0008.60%31-31.10%41-24.10%27
Plainfield$279,100-6.10%80.00%1183.30%42
Roxbury$275,00041.00%3-50.00%716.70%22
Waitsfield$457,500-29.20%10-54.60%15-42.30%41
Warren$701,5001.70%21-4.60%268.30%24
Waterbury$535,00023.00%470.00%50-19.40%35
Woodbury$260,0004.40%130.00%185.90%43
Worcester$490,00032.20%814.30%1385.70%21

Vermont Luxury Real Estate Market

1108 Quarry Road, Middlebury, VT ~ Tucked away with views of the Green Mountains is this 14-acre haven of unspoiled woodland beauty surrounding a large pond.

Single-Family January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$1,300,000 0% $1,503,209 -10.7%103 +13.2%86 -4.4%42 +5%

In the luxury market (defined in this report as residential properties with a sale price of $1,000,000 or more), the median sale price remained steady at $1,300,000 while the number of sales increased by 13% to 103 units. With many high-end buyers paying cash for their purchase, the rising mortgage rates had less impact on this segment of the market. Agents reported a solid number of showings for new listings as buyers looked outside of Burlington and lakefront properties to meet their needs. Locally our agents closed 1 in 4 luxury transactions in northwest Vermont – far more than any company in our area.

Our skilled agents and our 360-degree marketing approach combine to share the beauty of luxury homes with an affluent audience locally, nationally, and globally. Many of our agents are certified as Luxury Property Specialists. Aligning them with the best among Coldwell Banker agents. In 2023, Coldwell Banker affiliated agents achieved tremendous results with $267 million in Luxury closed sales daily and an average sale price of $1,900,000 worldwide.

CountyTop townsUnits ClosedMedian Sale PriceAverage Sale PriceLowHigh
Addison13$1,512,500$1,824,269$1,015,000$3,450,000
Leicester4$1,265,000$1,264,375$1,015,000$1,512,500
Panton3$2,450,000$2,318,833$1,906,500$2,600,000
Salisbury2$1,225,750$1,225,750$1,140,000$1,311,500
Chittenden76$1,245,000$1,410,402$1,000,000$3,169,000
Burlington20$1,210,000$1,367,950$1,000,000$2,900,000
Charlotte9$1,615,000$1,708,333$1,100,000$2,340,000
Colchester6$1,232,500$1,388,333$1,010,000$2,315,000
Essex3$1,250,000$1,288,333$1,240,000$1,375,000
Richmond8$1,238,000$1,435,583$1,055,833$2,300,000
Shelburne16$1,273,000$1,424,031$1,000,000$3,169,000
South Burlington6$1,127,500$1,285,407$1,055,000$1,902,445
Underhill2$1,137,500$1,137,500$1,075,000$1,200,000
Williston4$1,172,500$1,276,500$1,000,000$1,760,000
Franklin3$1,110,000$1,409,166$1,100,000$2,017,500
Grand Isle11$1,499,900$1,790,627$1,000,000$3,200,000
Grand Isle5$2,500,000$2,409,400$1,297,000$3,200,000
South Hero4$1,424,950$1,393,725$1,000,000$1,725,000
Lamoille74$1,522,500$1,863,649$1,000,000$4,600,000
Stowe70$1,542,292$1,901,771$1,027,000$4,600,000
Hyde Park1$1,755,000$1,755,000$1,755,000$1,755,000
Morristown2$1,015,500$1,015,500$1,000,000$1,031,000
Washington26$1,275,000$1,415,038$1,000,000$3,750,000
Fayston4$1,590,000$1,595,000$1,400,000$1,800,000
Warren6$1,342,500$1,709,166$1,150,000$3,750,000
Waterbury9$1,200,000$1,196,333$1,000,000$1,500,000
Woodbury2$1,343,500$1,343,500$1,192,000$1,495,000

Vermont Multi-Family Market Results

Multi-Family January-December 2023
Median Sale Price:Units Sold:Newly Listed:Days on Market:
$484,852 -1.1%118 -35.5%184 -10.2%49 -9.3%

Northwest VermontMEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKETVS 2022
Chittenden County$590,00012.40%73-46.30%$111-28.40%30-23.10%
Addison County$391,50025.30%160.00%$18-14.30%13322.00%
Franklin County$285,00010.50%293.60%$53103.90%52-49.50%

Many real estate investors paused during 2023 as reflected in a 35% decline in properties sold and the minimal change in the median sale price. While residential property sales are largely driven by “life stages or life changes”, the purchases of multi-family and investment properties are driven by analytics. Higher mortgage interest rates adversely affected the purchase opportunities in the market. The number of multi-family units coming to market dropped 10%. These properties are a desirable property class in large part due to low vacancy rates, rising rents, steady appreciation, tax benefits, and a hedge against stock market fluctuations. Owners may be holding onto properties as they perceive a lack of alternative investment options and don’t want to give up their pre-2022, low mortgage rates.

Vermont Land Market Results

147 South Cove Road, Burlington, VT ~ An unique opportunity to have the location you need paired with the lakefront views you’ve always wanted.

Land January-December 2023
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$139,000 +0.4% $210,078 -0.2%185 -20.9%301 -6.8%118 -23.4%

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.

MEDIAN SALE PRICEVS 2022UNITS SOLDVS 2022NEWLY LISTEDVS 2022DAYS ON MARKETVS 2022
Chittenden County$210,0008.0%45-33.80%62-45.60%114-17.40%
Addison County$133,5006.0%60-24.10%835.10%124-30.30%
Franklin County$93,50018.4%54-1.80%10812.50%90-35.30%
Grand Isle County$93,750-1.7%26-18.80%4841.20%16912.70%
Lamoille County$120,000-18.6%54-40.00%95-28.00%144-10.00%
Washington County$135,00010.7%99-13.90%124-15.70%109-5.20%