Northwest Vermont Market Report
2023 Real Estate Market Review & Trends to Watch
| MARKET INSIGHTS | |
|---|---|
| Median Sale Price: | $144,000 |
| Units Sold: | 16 (-5.9%) |
| Newly Listed: | 51 (-12.1%) |
| Days on Market | 211 |
The county has recorded two land sales in the first quarter, or little changed from the three land sales recorded a year earlier. The median sale price slipped 61% to $50,000.
| MARKET INSIGHTS | |
|---|---|
| Median Sale Price: | $179,500 |
| Units Sold: | 90 (+11.1%) |
| Newly Listed: | 197 (-21.2%) |
| Days on Market | 144 |
After a slower fourth quarter, home sales in Franklin County rebounded in the first quarter, helped by demand from first-time buyers seeking property in towns located near 1-89. Nevertheless, demand and pricing was bifurcated between the eastern and western sides of Franklin County, with our agents noting that property in eastern towns, farther away from 1-89, are taking longer to sell and at lower prices than on the western side of the county. Across the county, median pricing slipped 3% to $179,500. Lower gas prices have helped encourage buyers to look for property in the county, which serves as a commuting hub for professionals with jobs in Chittenden County. With the question over the future of IBM’s former chip plant resolved, that’s also unleashed some pent-up demand for property in Franklin County. On top of those trends, some buyers are looking for homes in Franklin County because of its lower price point when compared with Chittenden County, where the median home price stands at almost $255,000. For buyers looking for sub-$200,000 properties, Franklin County may offer more value and bigger land parcels, our agents note. Towns such as St. Albans City, St. Albans Town, Georgia and Fairfax – all close to 1-89 – recorded the largest number of transactions. St. Albans City recent downtown renovation is also attracting buyers to the town, while employers such as pharmaceutical company Mylan are hiring, adding to demand for housing.
Home sellers required 144 days to market their properties, slightly more than 122 days required a year earlier. This period also reflects fthe irst quarter which includes the winter selling season.
About 93 percent of the county’s residential market is represented by single-family homes, where the median sale price dipped 2.1 percent. The median sale price for condominiums rose 1.1%.
With the abnormally low winter temperatures during the first quarter, land sales fell 70% to only three transactions. The median sale price for land parcels rose 3.1% to $66,000.
Investors continue to look to Franklin County for multifamily homes, especially given the competitive market for duplexes and three- and four-apartment homes in Chittenden County. Six multi-family homes sold during the first quarter, unchanged from the year-earlier period. The median sale price rose 85.2% to $306,000.
| MARKET INSIGHTS | |
|---|---|
| Median Sale Price: | $254,595 |
| Units Sold: | 305 (+12.1%) |
| Newly Listed: | 573 (+3.1%) |
| Days on Market | 113 |
After ending 2014 on a strong note, Chittenden County’s residential sales market continued to see increased buyer demand in the first three months of 2015. Sales of residential properties rose 12.1% during the first quarter, buoyed by demand in Burlington and Essex.
Even though buyers closed on more homes than the first quarter of 2014, our agents report that some potential homebuyers and home-sellers delayed looking or listing their properties this winter, given the below-normal temperatures that put a damper on home sales across New England. The National Association of Realtors found that sales of existing homes declined 6.5% in the Northeast, largely because the month’s freezing temperatures kept would-be buyers inside.
The tough winter weather appears to have only delayed buyers’ interest, as well as the desire for homeowners to list their properties. With the state finally experiencing warmer weather, our agents are reporting a surge in property listings, as well as renewed interest from buyers.
Professionals are relocating to Chittenden County for job opportunities with employers such as Dealer. com and the University of Vermont Medical Center, while younger workers and renters are increasingly considering purchasing their own homes, helping to lift demand for residential property. With a wide range of property types and towns in the county, there are a myriad of options and price points, from Burlington based condominiums, new build in South Burlington to luxury property along Lake Champlain.
While prices rose, the number of transactions slipped, with residential sales declining 4.3%. Our Realtors are finding that homes in the $250,000 to $350,000 price range remain in demand, but inventory in that segment is often tight. At the same time, there is a lot of available inventory above $500,000, allowing buyers in that segment to be more selective.
The economic outlook for Vermont this year remains positive, with economists at the Vermont Economic Outlook Conference predicting the state’s unemployment rate could decline to 3.5% by year-end, with corporations adding 1,500 private-sector jobs. Some towns are already experiencing a lift thanks to local employers, such as Essex, where the overhang about the future of IBM’s chip plant in Essex Junction resolved last year when new owner GlobalFoundries vowed to keep jobs intact.
Despite the jump in transactions, median pricing across the county rose slightly, by 0.8%. Chittenden County ranked as the most expensive residential market among the four counties tracked by the Coldwell Banker Hickok & Boardman Realty Northwest Vermont Market Report.
Inventory has been tight in the $250,000 to $350,000 price range, which is the sweet spot for first-time homebuyers. Even though employers are adding jobs and the unemployment rate remains low, Vermont’s per-capita personal income has been relatively stagnant compared with New England as a whole, which raises affordable issues for some homebuyers. Property taxes have continued to rise, adding to concern about the cost of housing in Vermont.
Several towns saw an increase in buyer demand in the first quarter. Aside from Essex and Burlington, Colchester and Winooski also recorded significant jumps in sales, at 51.7% and 25%, respectively. The 23.3% increase in median sale price in South Burlington may be attributed to the success of South Village. Even though Burlington remains a desirable location, its more expensive housing stock is prompting some buyers to search for homes in less expensive municipalities, such as Winooski. The median sale price in Burlington slipped 13% in the first quarter as buyers may have been searching for lowerpriced housing.
Inventory continues to be tight in Burlington, although our agents are seeing more homes come on the market, which may help meet buyer demand. New listings in the city rose 20.8% in the quarter, signaling that more owners have confidence to move forward with their plans. Healthy discussions surrounding affordablity challenges in Burlington are taking place with the proposed Housing Action Plan and the recent announcement of the redevelopment of the Burlington Town Center. Initial proposals include retail, office, and housing.
The multi-family market recorded 20 sales in the first quarter, or 16.7% below the year-earlier quarter. A lack of inventory continues to be an issue for investors, who are attracted by Chittenden County’s low vacancy rates and relatively high rents. Our agents are finding that wellpriced duplexes and three- and four-apartment buildings in good locations are fielding multiple offers. Still, tight inventory will continue to be an issue for this segment, given that new listings slipped 6.7% in the first quarter.
Because of the wide range of pricing and demand characteristics across Chittenden County, it’s important that homebuyers and sellers consult a knowledgeable Realtor. Across the county, Coldwell Banker Hickok & Boardman Realty is involved in more than one-fifth of all real estate transactions by unit sales, more than any other competing agency.
After a strong fourth quarter, the first quarter of 2015 was hit by headwinds, thanks to abnormally cold winter weather that delayed some homebuyers from looking and some would-be sellers from listing their properties. With spring arriving, our agents are seeing pent-up demand from buyers, as well as a surge in new listings from sellers. Despite the tough winter weather, sales of residential properties rose in every county except for Grand Isle. Across the four counties tracked in this report, the median sales price slipped 1.8%.
Coming on the heels of a strong fourth quarter, homebuyers continued to snap up properties during the first three months of 2015. The number of residential property sales rose 12.1%. Pricing gains were muted, with a gain of only 0.8%, as affordable housing continues to be a challenge, especially in Burlington, pushing homebuyers to lower-priced inventory.
The year started off strongly for Franklin County, with sales volume rising 11.1%. Because property sells at lower price points than in neighboring Chittenden County, some first-time buyers are opting to search for homes in Franklin County. It’s also become more economical for commuters to consider property in the county, given the trend toward lower gas prices. Median pricing slipped 3% to $179,500.
Sales volume in Grand Isle was little changed, with 16 sales during the first three months compared with 17 a year earlier. Still, median sales pricing slumped 41.2% during the first quarter, as buyers searched for lower-priced homes. 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 witnessed a strong first quarter, following a boost in sales at the end of 2014. That lifted property transactions by 36.6% during the first three months of 2015. Our agents noticed pent-up demand for properties in good conditions and locations, which helped boost the median sales price by 18.1%.