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

Multi-Family demand remainings far ahead of supply

This multi-family property is a great investment opportunity and is in a great Burlington location. | MLS# 4602460
County Averages
Average Sale Price:Units Sold:Days on Market:
$386,796 (+15.3%)134 (+11.7%)88

Chittenden County’s multi-family market is experiencing similar trends as the residential market: steadily increasing buyer demand, tempered by lower inventory levels in the biggest markets for investment properties, such as Burlington and Winooski.

Investors have historically been attracted to Chittenden County’s multi-family properties because of the favorable investment trends, such as a strong return-on-investment given the area’s steadily rising rents and low vacancy rates.

During 2016, vacancy rate eased to 4.4%, compared with the last decade’s more typical 1-2%, in response to almost 700 new apartments coming on line during the past year. Nevertheless, our Agents report that investors continue to show strong demand for multi-family properties, given favorable trends such as a growing and diverse professional base and expanded hiring by local institutions and businesses such as University of Vermont and growing technology industry.

The higher vacancy rate has prompted some landlords to offer incentives such as flexible leases or to negotiate rents. Because of the changing rental landscape, our Realtors expect inventory levels to ease in 2017, as some property owners may decide to list their multi-family properties.

In 2016, 134 multi-family properties changed hands from a year earlier, with properties selling for 15.3% higher on average. As always, our Realtors are noting that well-priced properties in desirable locations quickly attract buyers.

With demand from buyers remaining far ahead of supply, our Agents note that owners of multi-family properties may want to consider listing to take advantage of the market dynamics.

The following are details about trends impacting the multi-family market:

Tighter inventory for Burlington, Winooski

New listings in Burlington, which is the most active town for multi-family homes, declined by 9% last year, while new listings in Winooski slumped by 42%. Both cities are popular with renters, which is sparking investor interest in these towns.

Rents may be little changed in 2017

With almost 700 newly built apartments coming online last year in Chittenden County, landlords may be entering a period of “minimal to no overall rent increases,” according to real estate consulting firm Allen & Brooks.

Rental demand is likely to continue

Empty nesters may spur rental demand from people between 55 to 64 years old, while Baby Boomers may look for senior housing targeted to the 55+ demographic, according to Allen & Brooks. The 25-34 age group is also projected to grow by 8.5% between 2015 to 2020, which may add to demand for rental properties.

The luxury market in Northwest Vermont provides plenty of options for buyers

Treasured views and private access to Lake Champlain from this custom built home in Charlotte. MLS# 4493321
County Averages
Average Sale Price:Units Sold:Days on Market:
$1,260,000(+6.8%)34 238

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 residential property market in Grand Isle County picked up in 2016

Wake up to peace and tranquility at Jordan Point Road in Isle La Motte. MLS# 4604520
County Averages
Average Sale Price:Units Sold:Newly Listed:Days on Market:
$277,491(+7.6%)133 (5.5%)293 (-3.9%)180 (+5.3%)


 

 

 

 

 

 

The luxury segment, which traditionally has represented a significant portion of the county’s property market, remains slow. Our Realtors note it may be due to this summer’s low water levels on Lake Champlain which stranded some docks and created difficulties for some boaters. However, taxes for lakefront properties in Grand Isle County provide an affordable alternative to Chittenden County.

Because the county is the smallest for property transactions in the region, a small number of sales may have a large impact on a town’s pricing and demand trends.

The following are some trends impacting the property market in Grand Isle

Quality inventory problems

Newly listed homes slipped by 3.9% last year, slightly tightening the available for-sale homes. Our Agents note that finding move-in-ready homes in the lower and mid-priced segments can be a challenge. Homes that need work or updating are more plentiful, but require more time to sell.

Growth in land sales

As with Northwest Vermont’s other three counties, Grand Isle witnessed a boost in land sales, thanks to demand for custom-built homes. The number of sold properties rose 83 percent to 22 sales in 2016. The average sale price jumped more than 57 percent to slightly more than $96,000.

Four luxury sales

Grand Isle’s luxury market recorded four transactions of $850,000 or higher in 2016. One of those sales was in Isle LaMotte which resulted in a 109% increase in average sale price for the town.  With taxes for lakefront properties less than in nearby Chittenden County, Grand Isle County is traditionally popular for second homes.  The Islands provide a great escape with a rural charm, biking trails, local businesses including a vineyard and orchards, and dining options.

First-time buyers may feel the most impact from tight inventory in Chittenden County

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

County Averages
Average Sale Price:Units Sold:Newly Listed:Days on Market:
$314,464 (+4%)1,974 (0%)2,468(-9.3%)74 (-6%)



 

 

 

 

 

 

The residential property market in Chittenden County continues to see strong demand from home buyers, including first-time home purchasers and luxury  buyers on the hunt for lakefront or mountain-view estates.

Mixed trends impacted Chittenden County’s residential market in 2017. While demand for properties is rising, fewer homeowners are listing their properties, leading to tighter inventory levels and challenges for those seeking affordable and mid price point properties. This provided an opportunity for sellers to market their homes with limited competition, often resulting in higher prices and faster closings allowing them to consider move-up options.

First-time buyers may feel the greatest impact from tight inventory levels, since our Realtors report that the sub-$350,000 range represents the fewest choices. Buyers who are looking for homes priced above $600,000 have more flexibility and options, given that these homes typically take longer to market and attract a smaller group of buyers.

The county’s supply of available inventory now stands at three months, compared with almost 10 months in January 2015.

Because of these trends, mid-priced homes in good condition and in desirable neighborhoods may receive multiple offers and sell quickly. These market conditions are pushing some buyers to search for property outside of Chittenden County, or to consider homes that require some updating.

Burlington

The number of listings declined by 23% last year, creating challenges for buyers in this sought-after town. Our data shows that homebuyers search for properties in the primary zip code of 05401 more than any other zip code in the region. Sales slipped by 17%, reflecting the lower inventory available to house-hunters – not a decrease in demand. An increased number of buyers are searching for the properties in the more affordably priced New North End and Old North End neighborhoods.

South Burlington

South Burlington’s diverse housing stock – ranging from luxury homes to entry-level condominiums — appeals to a wide range of buyers. The town’s proximity to Burlington also holds appeal.  Pricing in South Burlington rose 2.3% last year, although sales volume slipped slightly, reflecting tighter inventory levels. Our Agents are reporting strong demand for newly built properties in South Village, a community planned around walking trails and a farm.

Winooski

Winooski is also witnessing sharply lower inventory levels, with the number of new listings plunging by 37.5%. Winooski’s revitalization, bringing new restaurants, condominium developments, and stores, is attracting professionals to this former mill town.
Lower inventory and increased demand is driving prices higher. The average sale price rose 8.25% to $232,096.

Shelburne, Charlotte

Sale volume in Shelburne and Charlotte jumped 37.5% and 34%, respectively, last year. With more buyers coming into these towns, properties that had lingered on the market went under contract.
Some sellers were able to take advantage of market conditions and become move-up buyers, helping to boost sales in the $500,000 to $900,000 range, our Realtors note.
The higher average sale prices in these towns reflect the sales of these more expensive properties, rather than price appreciation.

Jericho

The substantial decline in closed sales reflects a correction after an unusually higher number of sales in 2015.

Multi-family Market

As with the residential market, inventory for multi-family properties has tightened in some of the more popular towns with buyers, such as Burlington and Winooski.

Within Chittenden County, the average sale price rose 15.3%, while the number of transactions rose 11.7%. For a longer discussion of trends, please see our multi-family section in this report.

Land Sales

Some professionals are opting to buy land and construct custom-built homes. Fifty-nine parcels traded hands last year, an increase of 11.3% over the prior year, with an average sale price of $169,893

Affordable Homes Draws Buyers into Franklin County

Discriminating taste is evident throughout this entire 3296 sq foot home in St Albans City. | MLS# 4504938
County Averages
Average Sale Price:Units Sold:Newly Listed:Days on Market:
$206,483 (+7.6%)610 (+18%)933 (-10%)114 (-5%)


 

 

 

 

 

 

First-time homebuyers and professionals who are seeking more for their money are turning to Franklin County as an alternative to pricier Chittenden County. 

With an average sale price of $206,483, Franklin County is the most affordable county among the four in Northwest Vermont. Nevertheless, pricing and demand varies considerably from town to town. Our Agents note that towns on the eastern side of the county – which are more remote and farther from I-89 – typically are in lower demand than those closer to the Interstate.
Homes sold for an average of 97.3% of their listing price, illustrating the growing demand for properties in the county. Our Realtors note, homes that are in good condition and well-priced are selling extremely quickly.

Tighter inventory, higher prices

Inventory in Franklin County grew tighter in 2016, pushing prices higher. Buyers seeking properties in the sub-$220,000 range have been the most challenged, especially when seeking homes in good condition.

The I-89 corridor

Buyers are seeking properties in towns along the I-89 corridor, since it provides a quick commute into Burlington and Chittenden County. Sales in Georgia, for instance, surged more than 56% last year.

St. Albans is getting a second look

St. Alban’s City is drawing praise and new buyers after a $3 million renovation to its Main Street. Sales in the city jumped by one-third last year. St. Albans Town is also benefitting, with sales increasing 20%.  Expansions and renovations to the North Western Medical Center also improve the quality of care offered to area residents.

Surge in land sales

Franklin County also saw a surge in land buyers, with the number of sold parcels jumping almost 52 percent last year. The average sale price rose more than 31 percent to $113,361.

Fall 2016

Northwest Vermont Real Estate Fall 2016
South Village, a neighborhood of single-family homes and Townhomes in the heart of Vermont’s beautiful Champlain Valley.

Northwest-Vermont-Real-Estate-Sale-PriceThe 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.

Northwest-Vermont-Real-Estate-SoldConcerns 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
Chittenden-Prices

  • 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
Franklin-Prices

  • 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.

Rental Market Remains Competitive

The rental market remains competitive despite an increase in newly constructed apartment buildings. Because available apartments are leased quickly due to strong demand, our Rental Specialist recommends starting an apartment hunt no more than 30 to 45 days before a move. 

Vermont Rental Market 2016The Vacancy Rate Is Easing

The vacancy rate stood at 2.1% in June, significantly higher than the rates seen in 2010-2014, when it averaged about 1.4%, according to real estate consulting firm Allen & Brooks. With more than 3,000 new apartments being constructed across Chittenden County, there will be more options for renters, including some new affordable housing and age-restricted rentals. Almost 600 new apartments will open in 2016 alone, Allen & Brooks forecasts.

More Choices for Renters

The burst of new construction is providing more choices to renters, such as whether to opt for a newly constructed apartment or an older home in neighborhoods such as Burlington’s Old North End, according to our Rental Specialist. Newer buildings may be slightly more expensive, but also can include modern amenities and conveniences, such as fitness rooms and pet friendly policies, that older properties do not.

Stabilizing Rents

Monthly rents are stabilizing, thanks to the slightly higher vacancy rates and newly constructed apartment buildings. The rate of increases should moderate in the near future, after several years of rates increasing at more than 2% annually, Allen & Brooks notes.

Plan for a 30-45 Day Search

Renters should plan to begin their search for a new apartment about 30 to 45 days before they move, according to our Agents. Finding a rental can be competitive, even with the higher vacancy rate.

Revitalized Neighborhoods

Revitalization is bringing new residents to older neighborhoods and towns, such as Winooski and the Old North End of Burlington. Winooski has earned a reputation as “The Brooklyn of Vermont” because of its excellent new restaurants and more affordable rents than neighboring Burlington. Both areas are seeing new construction, such as the Silversmith Commons and Maiden Lane Apartments in the Old North End and Riverrun in Winooski.
Because our rental expert has extensive contacts with landlords, Realtors and associations, Coldwell Banker Hickok & Boardman 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 2.1%, significantly below the national average of 4.4%.
  • Rents have increased by more than 2% annually since 2011.

Well-Priced Multi-Family Properties in Desirable Locations are Selling Quickly

Downtown Burlington 9+ Unit apartment building with MLS# 4602486 | Downtown Burlington Duplex MLS# 4514267
Multi-Family Averages
Median Sale Price:Units Sold:Days on Market:
$290,000 (+1%)91 (+3%)
162 (+5%)

Vermont-MultiFamily-Median-Sale-PriceAs with the residential market, the multi-family market is witnessing strong demand tempered by lower inventory levels. That’s pushing up pricing in some markets, especially sought-after towns such as Burlington.

The vacancy rate in Chittenden County has eased somewhat from record low levels in previous years, although it still remains below the national level. At the same time, local businesses such as Dealer.com and GE Healthcare continue to hire, bringing professionals into the region. Those dynamics are supporting a vibrant market for rental properties, which in turn draws investors to the multi-family investment market.

During the first nine months of the year, 91 multi-family properties were sold, little changed from a year earlier. Our Realtors note that demand has been tempered by fewer new listings coming on the market, which is limiting the available inventory of investment properties. Because of that, well-priced properties in desirable locations are selling quickly.

Inventory continues to be tight in Burlington and Winooski, with the latter experiencing a surge in interest from renters because of its revitalized downtown area, which has brought new restaurants and shops to the former mill town. New listings in Burlington, which is the most active town for multi-family homes, have declined by 13% this year.

With demand from buyers remaining far ahead of supply, our Agents note that owners of multi-family properties may want to consider listing to take advantage of the market dynamics.

The following are details about trends impacting the multi-family market:

Vermont-MultiFamily-SoldTight Inventory for In-Demand Towns

New listings in Burlington, which is the most active town for multi-family homes, have declined by 13% this year. Our Realtors are also witnessing tight inventory levels in Winooski, which is drawing more interest because of its revitalized downtown.

The Vacancy Rate Continues to be Low

The rental market’s vacancy rate stood at 2.1% in Chittenden County in June, according to real estate consultancy Allen & Brooks. That’s significantly higher than the rates seen in 2010-2014, when it averaged about 1.4%. While rents are stabilizing as a result, that hasn’t impacted demand or pricing for multi-family properties as the region’s vacancy rates are substantially lower than the roughly 4.5% national rate.

Rents are stabilizing

Younger buyers with student loans may end up in the rental market for more years than older generations because of their loan repayments. Allen & Brooks is also forecasting increasing demand from seniors for rental housing, as many decide to scale down and sell their single-family homes.