“Days on the Market” has dropped from 150 days to 80 days for Single Family homes in Chittenden County

South Village, a neighborhood of single-family homes and Townhomes in the heart of Vermont’s beautiful Champlain Valley.

Single Family    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$289,000 (+1%)$332,990 (-1.3%)178 (-10.1)333 (-14.6%)80 (-46.7%)

Condo    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$252,200 (+19.2%)$287,334 (+22%)102 (-14.3%)143 (-5.3%)105 (-18.6%)


The residential property market in Chittenden County continues to see strong demand from buyers while inventory remains extremely tight especially for single family homes. 

The pace of the market is reflected in the “Days on the Market until Sale” which has dropped from 150 days to 80 days for single family homes during the first quarter of 2017. Sellers and Buyers alike need to be prepared to act when they decide to enter the real estate market.

The median and average sale prices for condominiums showed heathy gains due to new construction and higher priced units selling rather than increases in the prices of existing units.

With residential sales flat in 2016 and the continuing decline in inventory in early 2017, the median sale price for single family homes may rise more than the 1% we’ve seen in the first quarter.

Addison County saw an increase in 2016 and is continuing that trend into 2017.

Custom post and beam home with Easterly Mountain Views in Monkton | MLS# 4627500

Single Family    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$232,000 (+14.3%)$259,481 (+6.4%)51 (-8.9%)111 (-16.5%)135 (-38.6%)

Condo    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$194,500 (+28%)$269,321 (+57%)7 (+133%)1 (-85%)113 (-9.6%)

The growth in the median and average sold price for residential property in Addison County continued into the first quarter of 2017.

The majority of residential sales in Addison County is single family homes; therefore a small change in the number of sales on Condominiums can have a large impact on the data.

New homes coming on the market continue to decline, with demand increasing as buyers are extending their searches to Addison County because of Chittenden County’s shrinking inventory and higher prices.

After a number of years of little to no growth in the median and average sales price for single family homes, Addison County saw an increase in 2016 and is continuing that trend into 2017.

First-time Home Buyers Continue to Extend their Search into Franklin County

Large bright rooms in this lovely Ranch style home in St Albans Town. | MLS# 4627983

Single Family    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$194,500 (+2.4%)$207,945 (+8.1%)100 (-17.9%)144 (-29.8%)110 (-32.9%)

Condo    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$235,000 (+20.7%)$259,481 (+17.3%)11 (+83%)14 (-40%)147 (-32.3%)

Because Franklin County has the lowest average and median sale prices in Northwest Vermont, some homebuyers have been turning to the county over the past year as they seek more value for their money. 

After a surge in home sales during the first quarter of 2016, with a 37% increase and 18% increase for the year overall, the decline in single family home sales at the start of 2017 may be viewed as a “normalizing” of the market versus a decrease in buyer interest.

The pace of the market is reflected in the “Days on the Market until Sale” which has dropped from 164 days to 110 days for single family homes during the first quarter of 2017. Sellers and Buyers alike need to be prepared to act when they decide to enter the real estate market.

Condo sales rose – but a change in the small number of transactions can have a large impact in the percentages.


 

Grand Isle County Saw a Strong Start in 2017

Beautiful Lakefront Contemporary Farmhouse on the shores of South Hero. | MLS# 4624624

Single Family    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$210,00 (-32.3%)$253,703 (-19.6%)25 (+56%)58 (-1.7%)161 (-25.5%)

Condo
No sales to report

Grand Isle had the strongest start in many years likely bolstered by the lack of affordable homes in nearby Chittenden County as reflected by the lower median and average sale price.

The decline in “Days on Market Until Sale” combined with the decrease in sale price may indicate that buyers are looking for affordable properties in Grand Isle and are ready to act.

Second home buyers, core to the Grand Isle market, are historically not active in the market during the first three months of the year

Luxury Home Sellers have Grown More Flexible in their Expectations

Right on Lake Champlain with stunning southern views, this 4 bedroom updated house has it all! | MLS# 4630482
Luxury Home Market   
Median Sale Price:Average Sale Price:Units Sold:Days on Market:
$940,000 (-30.2%)$1,057,178 (-31%)7 (+40%)86 *

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 on 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.

Multi-Family Market has Strong Buyer Demand, but Inventory Remains Low

Prime Burlington Hill Section – 11 Units. Rare chance to invest in one of the strongest rental markets in New England. | MLS# 4615430
Multi-Family    
Median Sale Price:Average Sale Price:Units Sold:Newly Listed:Days on Market:
$285,000 (-18.9%)$296,039 (-24.3%)27(-3.6%)5064 (-27%)

The Multi-Family market, largely driven by Chittenden County, is experiencing similar trends as the residential real estate market: steady buyer demand, tempered by lower inventory levels.

Over the past year, the historically low vacancy rate has eased a bit, however, Investors continue to show strong demand for multi-family properties given favorable trends such as a diverse professional base, consistent hiring by local institutions and businesses, and the delay of millennial buyers saddled with student loan debt to purchase their first home.

The decline in average and median sold prices is a result of a small number of properties sold in the 1st quarter of the year coupled with a high priced property sold in 2016 which has a strong effect on the data. The decline is not a result of depreciation.

Our Agents report that larger, high-priced properties are not coming to market as Investors choose to hold on to those properties.

With well positioned, multi-family units selling quickly – some buyers are considering single family homes in renter friendly neighborhoods as an investment opportunity.

Chittenden County Vacancy Rates Jump to 4.4%

South Village Rental Units in South Burlington. | SouthVillage.com

The rental market in Chittenden County is rapidly changing due to a surge of newly constructed apartment buildings.

With almost 700 newly constructed apartment units coming online in 2016, the rental market is showing more favorable signs for renters. A higher vacancy rate is giving renters more options in their apartment searches, while also prompting some landlords to offer more flexible terms or incentives to attract new tenants.

New rental buildings include Bartlett Brook, a 63-unit building in South Burlington, and the 67-unit Bayberry Commons in Burlington. Both buildings are offering one month of free rent for applicants who sign a lease by March 1, a sign of the type of incentives that are now available.

Our Rental Specialist is forecasting that rent increases will moderate in 2017. Rents may decline on some older apartments that lack the amenities offered by newer buildings. It’s likely the pressure on rents will continue throughout the year, given that another 323 apartment units are expected to come on the market in 2017, according to real estate consulting company Allen & Brooks.

Even though the vacancy rate has eased, our Rental Specialist continues to recommend an apartment search no more than 30 to 45 days before a move.

The following are some trends that are impacting the rental market:

A favorable vacancy rate for renters
The vacancy rate jumped to 4.4% in December 2016 from 3% a year earlier, Allen & Brooks found. In the previous decade, the rate rarely rose above 2%.

Wider range of choices
The construction surge means renters have more options than in previous years. The newly constructed buildings typically have higher rents, yet some renters prefer them because of their amenities, such as parking, gyms, recreation trails, storage, pet grooming, and swimming pools.

Minimal rent increases
The new rental inventory and higher vacancy rate will kick off a period of minimal to no rent increases, predicts Allen & Brooks. This comes after average rent increases of almost 3% per year since 2011. A welcomed relief as the rental prices in Chittenden County are high as compared to wage levels.

Because our rental expert has extensive contacts with landlords, Realtors and associations, Coldwell Banker Hickok & Boardman Realty is well positioned to help clients find the most recent properties on the market.

Early 2017

Custom built 4 bedroom, 5 bath home on 1.46 acres in Williston’s Meadowridge neighborhood. MLS# 4470415


 

 

 

 

 

 

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.

Mixed Trends Seen in Addison County in 2016

With a backdrop of the beautiful Green Mountains, you will enjoy this beautiful Contemporary home on over 37 acres in Lincoln. MLS# 4613711
County Averages   
Average Sale Price:Units Sold:Newly Listed:Days on Market:
$258,343 (+4.7%)346 (0%)607 (-5.5%)140 (-8.5%)


 

 

 

 

 

 

Addison County’s residential market witnessed mixed trends in 2016. While the average sale price rose 4.7% last year, the number of sold units was little changed.

With fewer homeowners listing their properties in 2016, tight inventory resulted in fewer choices for buyers, which also pushed home prices higher. Demand for property remains stable in the county, partly as some buyers are extending their searches to Addison County because of Chittenden County’s shrinking inventory and higher prices.

The luxury market in Addison recorded three sales, with high-end buyers drawn to the county’s lakefront homes and country estates. Professionals who can telecommute to their jobs are also relocating for the county’s lifestyle and outdoor appeal. Middlebury College Alumni are often drawn back to the region.

Homes in the sub-$250,000 range are in demand, where inventory can be especially tight. Buyers on the hunt for properties in the $500,000 range and higher will find more options and inventory.

The growing popularity of Ferrisburgh

As it borders Chittenden County, Ferrisburgh offers an easy commute into Burlington, as well as Addison County’s towns and villages. Sales in Ferrisburgh jumped 40% last year. The average sale price rose almost 20% to $337,980.

Three luxury sales

The county has recorded three sales of more than $850,000 this year.

Lower inventory

Across the county, new listings declined by 5.5%. Some towns saw tighter conditions than others, such as Vergennes, where new listings declined by almost 19%.

Land purchases increase

More buyers turned to land purchases in Addison County last year, boosting sales by more than 44%. The county remains popular with people seeking to build custom homes for primary or vacation residences. The average sale price gained almost 16% to $109,786.

 

The Rental Market vacancy rate jumped to 4.4% in December 2016

The rental market in Chittenden County is rapidly changing due to a surge of newly constructed apartment buildings. 

*According to Allen & Brooks Reports

During the past decade, the vacancy rate has hovered between 1-2%, far below the national average. The low vacancy rate and rising expenses such as property taxes, had led to a competitive market for renters, and allowed landlords to increase rents steadily each year.

With almost 700 newly constructed apartment units coming online in 2016, the rental market is showing more favorable signs for renters. A higher vacancy rate is giving renters more options in their apartment searches, while also prompting some landlords to offer more flexible terms or incentives to attract new tenants.

New rental buildings include Bartlett Brook, a 63-unit building in South Burlington, and the 67-unit Bayberry Commons in Burlington. Both buildings are offering one month of free rent for applicants who sign a lease by March 1, a sign of the type of incentives that are now available.

Our Rental Specialist is forecasting that rent increases will moderate in 2017. Rents may decline on some older apartments that lack the amenities offered by newer buildings. It’s likely the pressure on rents will continue throughout the year, given that another 323 apartment units are expected to come on the market in 2017, according to real estate consulting company Allen & Brooks.

Even though the vacancy rate has eased, our Rental Specialist continues to recommend an apartment search no more than 30 to 45 days before a move.

The following are some trends that are impacting the rental market:

A favorable vacancy rate for renters

The vacancy rate jumped to 4.4% in December 2016 from 3% a year earlier, Allen & Brooks found. In the previous decade, the rate rarely rose above 2%.

Wider range of choices

The construction surge means renters have more options than in previous years. The newly constructed buildings typically have higher rents, yet some renters prefer them because of their amenities, such as parking, gyms and swimming pools.

Minimal rent increases

The new rental inventory and higher vacancy rate will kick off a period of minimal to no rent increases, predicts Allen & Brooks. This comes after average rent increases of almost 3% per year since 2011. A welcomed relief as the rental prices in Chittenden County are high as compared to wage levels.

Because our rental expert has extensive contacts with landlords, Realtors and associations, Coldwell Banker Hickok & Boardman Realty is well positioned to help clients find the most recent properties on the market.


Chittenden County’s Rental Market Insights

  • The county’s vacancy rate is 4.4%, easing from historically low rates of 1-2%
  • Rent increases may moderate in 2017 because of the higher vacancy rate