Both single-family homes and condos showed substantial price appreciation in Chittenden County. The median sale price of single-family homes rose to $505,050 – a record high. Newly listed properties dropped 15.4% to 559. Pending single-family homes in May, an indicator of home sales to come, were flat with last year and showed a 10.2% decline over a 12-month average. Limited choice and slowing buyer demand are two contributing factors to this decline.
While condominium options are slightly more plentiful in Chittenden County, new inventory was down 1.3% from 2021 with 376 new listings. Limited inventory continued to put pressure on prices as the median sale price of condominiums appreciated to $340,000, a nearly 22% increase over last year. Higher interest rates, coupled with inflation are slowing cooling demand. It is anticipated that inventory will gradually increase, slowing down price appreciation.
Twenty-two months into a global pandemic, the housing market nationally and locally remains very strong. According to the National Association of REALTORS, existing-home sales reached a seasonally adjusted annual rate of 6.12 million – the highest rate in 15 years. The median existing-home sale price grew by $50,200 to $346,900, a 16.9 % appreciation over the prior year. Locally, the median sale price for existing single-family homes increased by 16.3% to $382,750.
Single-Family January-December 2021
Median Sale Price:
Average Sale Price:
Units Sold:
Newly Listed:
Days on Market:
$382,750 +16.3%
$439,658 +15.1%
2,660 +4.4%
2,848 -0.38%
39 -43.5%
Condo January-December 2021
Median Sale Price:
Average Sale Price:
Units Sold:
Newly Listed:
Days on Market:
$275,000 +5.8%
$317,374 +11.1%
749 -8%
803 -1.7%
30 -40%
Multi-Family January-December 2021
Median Sale Price:
Average Sale Price:
Units Sold:
Newly Listed:
Days on Market:
$430,000 +22.9%
$539,588 +21.1%
244 +48.8%
303 +41.6%
60 -31%
Land January-December 2021
Median Sale Price:
Average Sale Price:
Units Sold:
Newly Listed:
Days on Market:
$104,298 -5.1%
$164,864 +3.7%
316 +29%
372 -25%
241 -24.7%
Is now the time to sell? The end of 2021 showed an all-time low inventory of properties for sale, nationally declining 18%. In northwest Vermont, there were only 411 properties of all types (residential, multi-family and land) for sale compared to 4066 sales for the year. Overall, the number of properties coming to market in 2021 remained flat with the prior year, yet the number of closed sales increased modestly. There is pent-up demand for sellers and listings. George Ratiu, of Realtor.com noted, “The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception.” That is changing with work-from-home options, lifestyle and space needs, and desire to live closer to family and friends.
As home prices increase, home equity has surged. It is estimated that homeowners with mortgages in the U.S. have seen an equity gain of $57K in the past year. With interest rates still low, these homeowners can consider using that equity to purchase a new home with little change in their payments. Further, many homeowners can refinance their mortgage, taking out the equity to use toward the purchase of an investment or vacation property. With your home being, in most cases, your largest asset, knowing the value in this evolving market is critical. Your agent can provide you with that current information. If your next move is outside Vermont, our agents will connect you with a professional to guide you through your next purchase.
Savvy sellers, following the guidance of their REALTOR, are listing their homes early in 2022 versus waiting for the traditional spring market. Numerous showings and multiple offers persist, with many buyers willing to accommodate a seller’s specific terms, such as agreeing to closing dates a few months out.
Should Buyers stay in the market? Is real estate still a good investment despite rising prices? According to Lawrence Yun, NAR Chief Economist, home prices are in no danger of declining due to tight inventory and strong demand, but he does expect prices to appreciate at a slower pace in 2022. While inflation has risen to 6%, affecting consumer goods like food and fuel, historically, housing has provided stability and even growth during these periods. In 2021, the appreciation of the median price of a home more than doubled (16%) the pace of inflation (6%). Mortgage interest rates will remain at a historically low rate, despite slight increases signaled recently by the Fed.
Yes, buyers should remain in the market rather than stay in their rental. “A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise, and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you are renting,” says James Royal, of Bankrate. According to the Chief Economist for Moody’s Analytics, “One place where we’re going to see continued strong acceleration in inflation over the next year or two is on rents.” Locally, in December the Allen, Brooks & Minor Report reported the apartment vacancy rate at .8% and the rent inflation from 2020-2021 at 2.7%. Many landlords maintained rental rates during the pandemic, but increases are likely in 2022 and beyond, anticipated to be 3% or higher.
Still, the question of affordability will continue to be a hot topic in 2022. Home prices will not decline in 2022, but they are predicted to rise at a moderate pace. The average projection from leading economists is a 5.1% increase, equating to a median price of $402,270 in northwest VT. With per capita income up and mortgage rates predicted at near 3.6% by year-end, statistically, there is still capacity for households to absorb higher payments. Whether homeowners want to absorb higher payments is a different story all together. Not all purchasers will be impacted by rising interest rates. As we have been reporting in previous Market Reports, many buyers are paying cash for their homes. This may result from transferred wealth from their boomer parents, stock market and crypto wealth, or equity realized from the sale of a home in another state.
As 2022 begins, the number of well-qualified buyers searching for a home remains very strong. Our agents can assist with introductions to qualified lenders, market information, and strategies to navigate this fast-paced market.
The median sale price for a home in Franklin County reached $295,000 in 2021. While the price has increased 41% since 2018, the county still provides the most affordable options in northwest Vermont. More homes were listed for sale during the first half of the year, while condos coming to market increased by nearly 20% by year end. The average days on the market dropped to only 46 days from listing to close for single family homes – so buyers need to be well prepared to act when the right property hits the market. St. Albans topped the county in sales by a large margin, followed by Swanton, Fairfax, and Georgia. The median sale price of $380,000 in Fairfax was 29% above the county average, but still 14% lower than the median price in nearby Chittenden County. With easy access to I-89, these towns provide options for buyers commuting to work. Traveling east, the towns of Sheldon, Berkshire, and Montgomery posted significant increases in the number of homes sold in 2021. Work from home opportunities as well as vacation home purchases may be part of the reason for growth in this area of Franklin County.
Surrounded by Lake Champlain, Grand Isle County has long been a destination for Vermonters and tourists alike. As lifestyles changed as a result of the global pandemic, Grand Isle proved desirable for those able to work remotely. With a quick drive to Chittenden County, Franklin County, and Burlington International Airport – the number of homes sold over the past 2 years has increased while the number of homes coming on the market declined nearly 16% – mostly during the second half of 2021. This drove the median price up by 24% to $380,000 – a considerably higher increase than the region. Inventory was absorbed more quickly in 2021, with the average days on market (DOM) dropping to 67 days – or just over 2 months from listing to close. Alburgh led the county with 28% of the closed sales. Affordability in this northernmost town, coupled with the greatest number of new listings on the market likely contributes to these results.
High demand for luxury homes across the state and locally in northwest Vermont continues resulting in an increase of nearly 8% in units sold in 2021. Buyers from within Vermont sought views, flexible living space and high-end amenities while out-of-state buyers sought refuge from metro areas or properties to enjoy with their friends and families.
New listings coming to market in the first half of 2021 were very strong as home sellers recognized the opportunity to right size their life or capitalize on their strong equity position. Demand remained strong all year as buyers waiting for the perfect home to hit the market, snapped up properties across the region, with the average number of days from listing to close at just under 2 months. Chittenden County posted 76% of the luxury sales followed by Addison County. We have provided the 2021 luxury sales by county and highlighted some of the top towns as well.
Internationally, Coldwell Banker agents transact nearly $168 million in daily luxury sales. Locally, our agents represented 1 in 3 clients closing on a luxury sale in 2021. Our skilled agents and our marketing, including best in class domestic and global listing syndication and prestigious publications, are a remarkable force in the arena of high-end real estate.
*Our luxury property recap includes single family homes and condominiums that have sold for $1.0 million or more across northwest Vermont. This reflects a change from prior reports where we included sales of $850,000 or more in the luxury category. Franklin County recorded no residential sales above $1,000,000 in 2021.
The demand for homes in Chittenden County remained strong throughout 2021. The modest increase in the number of homes sold during the year was a result of the limited and fast-moving inventory and not a reflection of the number of buyers participating in the market. Many purchasers faced multiple offers, needing to exercise patience and persistence, while working closely with their REALTOR, to close on a home that met their needs.
The median and average sale price increased for both single-family homes and condominiums again in 2021. With the prices of homes increasing by 29% over the past 4 years, homeowners have built equity, while keeping the largest portion of their housing expenses – their mortgage – reasonably stable. For this reason, buyers should remain in the market. The opportunities to build wealth, manage your housing expenses, and enjoy the many benefits of home ownership simply do not exist as a renter.
New construction projects such as Hillside at O’Brien Farms and South Village in South Burlington are nearing the end of their current phases of development – with Hillside preparing to offer additional homes in the near future. New construction projects throughout the county offer an opportunity for existing homeowners to use their strong equity position to “right-size” and for buyers who have a flexible timeline to purchase a new, energy-efficient, and low maintenance home.
Burlington, Essex, and South Burlington lead the county for closed sales while Hinesburg and Winooski posted the largest increases in closed units in 2021. With a relatively affordable median price, proximity to nearby Burlington, and a vibrant downtown the mill town of Winooski continues to be a desirable option for first time buyers.
Chittenden County offers a variety of housing options including a large number of condominiums. The median sale price for condos across the county rose slightly to $280,000 providing an affordable and low maintenance housing option for buyers.