The median sales price for a single-family home in Franklin County has reached $267,250 – a 32% increase since 2018. Still, the county remains the most affordable in northwest Vermont. More homes and condos were available for purchase during the 1st half of 2021 than during the same period last year. This offered more options for buyers to consider in their home search – while still needing to be well prepared to act when the right property hit the market. The average days on market (DOM) – from listing closing was only 51 days. St. Albans topped the county in sales by a large margin – followed by Swanton, Fairfax and Georgia. Fairfax, the highest-priced town, posted a median sales price 38% above the county average. Our Agents have noted that the multiple offer frenzy has slowed a bit, and the continued closure of the Canadian border has prevented some second home sales.
Land sales in northwest Vermont have nearly tripled so far in 2021 with 174 parcels sold. Limited inventory for existing homes and buyer preferences for amenities, energy-efficiency, and newly envisioned living spaces contribute to this solid growth. While the median sale price across the region dropped slightly to $94,500 – a piece of land in Chittenden County is nearly double.
You can’t listen to the news without hearing about soaring lumber prices, labor shortages, and supply chain disruptions affecting housing starts nationally. The story is no different in Vermont. The builders that we work with are working diligently to control pricing, manage construction, and deliver beautiful homes timely. A number of options are available for buyers who can manage longer turnaround times and higher costs associated with building – but in the end, low-interest rates, energy-efficiency options, and the ability to customize their dream home make new construction very attractive.
At this time last year, nobody could predict what was in store for our world, our country, or our community in 2020. As we adjusted to the challenges of a global pandemic, the value of “home” took on even greater meaning. Many people began to contemplate whether their current living situation met their evolving needs or desires. Whether considering a first home purchase, right-sizing a current living situation, or fleeing an urban center for the safety of Vermont – buyers drove the market to heights never before seen.
Single-Family January-December 2020
Median Sale Price:
Average Sale Price:
Units Sold:
Newly Listed:
Days on Market:
$328,900 +8.2%
$381,969 +10.6%
2,550 +0.8%
2,860 -12%
69 -5.5%
Condo January-December 2020
Median Sale Price:
Average Sale Price:
Units Sold:
Newly Listed:
Days on Market:
$260,000 +6.1%
$285,607 +3.4%
811 +7.1%
816 -2.5%
50 -23.1%
In addition, economic factors, such as low mortgage interest rates and a strong stock market, fueled demand in an already undersupplied market, driving up prices and putting pressure on affordability.
The National Association of REALTORS (NAR) has reported the share of first-time buyers in the market fell to 31% from 33% the year before – the lowest share since 1987. Buying a primary residence is a financial decision, but also an emotional one that involves many lifestyle factors. For most home buyers, the purchase of a primary residence is one of the largest financial transactions they will make. As inventory moves quickly, some never hitting the open market, now more than ever, Buyers need the help of a real estate professional to help them find the right home and negotiate the terms of a sale (including price) in a highly competitive market.
According to NAR, the most common reason cited for selling a home was the desire to move closer to friends and family. After March (the onset of COVID-19), the second reason was that their home was too small. Approximately 21% of working Americans are currently working from home. That, coupled with homeschooling and the desire for more outdoor or recreational space, larger homes are regaining popularity.
The median sales price of a single-family home has increased by 12% over the past 2 years across the region. Prices and demand vary by county and town, as demonstrated in this report. Various national economists predict prices to rise, on average, 4.1% in 2021. As the urban-to-suburban (and rural) trend continues and “climate change refugees” discover the safety of Vermont, we believe that prices in northwest Vermont will outpace the national average.
The outlook for 2021 is continued strong demand from both in state and out of state buyers. Low mortgage interest rates, currently sub 3%, should also continue through 2021. Even with a small adjustment, rates will remain at historical lows giving buyers additional purchasing power.
Sellers’ length of tenure in the home remained at a high of 10 years; historically, this has been six to seven years. Sellers may find 2021 is an ideal time to sell in order to maximize their solid equity position (unprecedented “house wealth”) and the current buyer demand.
Many buyers have turned to new construction in communities like Hillside at O’Brien Farm and South Village – both in South Burlington. New builds offer buyers time to make selections in location, floorplans, and finishes while not competing in the frenzied re-sale market. However, supply chain disruptions and increased cost for materials are pressuring builders who want to deliver a high-quality product on time.
With the increase in median sale price comes an increase in the equity position for many homeowners. The time to list may be right for Sellers who have postponed a move to list their home. Showing practices during COVID-19 are efficient and less intrusive then they were pre-pandemic. In most cases, only well-qualified buyers who have viewed homes online – via video and photos – narrowed their search to your home will physically enter your property. Many qualified buyers are waiting for the right property to hit the market; so savvy sellers, with guidance from their agent, will list their home now and not wait until the spring.
Middlebury College attracts alumni seeking homes in town and in the neighboring town of Cornwall. While shoreline and accessibility to Lake Champlain drive sales in neraby Ferrisburgh, Addison, and Panton. Even as the number of new listings to the market decline, a variety of properties remain for buyers to choose from – and a bit more time to contemplate a purchase.
The number of condos sold has jumped by more than 25% – offering buyers ease of maintenance and prices, on average, under $235,000. St. Albans topped the county in sales of single-family homes at 186 units, followed by nearby Swanton, Fairfax, Georgia, and Highgate. With convenient access to I-89, these towns remain attractive to buyers seeking an easy commute to work and amenities.
Surrounded by Lake Champlain, Grand Isle County has long been a destination for Vermonters and tourists alike. A short drive from nearby Chittenden and Franklin County, Grand Isle County proved to be a desirable locale for those living and working in the remote world we experienced in 2020.
The median sale price for single-family homes rose nearly 14% far greater than the region’s 8% growth. Sixteen of the Luxury Sales in 2020 were in Grand Isle – accounting for nearly 10% of the homes sold. The average sale price of those homes was $1,406,438, with the median standing at $1,250,000.
In spite of a slow start, in part due to COVID-19, the luxury market ended the year in record fashion. While out of state travel restrictions stifled the traditional spring market, by mid year buyer demand began to rise.
Property videos, professional photography, and options like FaceTime offered creative solutions for “COVID -19 refugees” to consider a purchase without always visiting the homes in person. The term “second primary residence” was coined as buyers and vacation homeowners moved to their Vermont properties for extended periods.
Across the state, Vermont Realtors sold over 300 homes worth over $1 million or more, nearly three time the prior year. Northwest Vermont recorded 108 sales at prices over $850,000, a 40%+ increase. The luxury market, unlike mid price ranges had available inventory that, in some cases, had sat on the market for some time.
The stunning rebound in sales during the second half of 2020 is largely driven by out of state, cash buyers or Vermonters who desire high-end amenities, views, and location while living & working remotely. In the COVID-19 era, “want and need” have become more significant variables affecting the decision-making process to buy in the luxury market.
The investor market remains strong in northwest VT, mostly driven by low-interest rates and strong equity positions in existing properties for owners. The median sale price of $350,000 was stable across the region with 7% growth to $417,300 in Chittenden County.
The number of units sold grew substantially over 2019, while properties coming on the market continued a year over year decline. Burlington, the largest city in Vermont, accounts for most multi-family sales in the region, boasting an average sale price in excess of $700,000.
According to the recently published Allen, Brooks & Minor Report, the apartment vacancy rate in Chittenden County is the lowest reported in the past six years at 1.1%. As long as tenants can stay on top of their rent payments – some struggling with unstable unemployment – and housing for college students remains in high demand, the desirability of owning multi-family properties in the region will continue.
After a brief slow down in early 2020, land sales ended up increasing across the region. The declining inventory for existing homes and buyer preferences for amenities, energy-efficiency, and newly envisioned living spaces contribute to this growth.
Options remain for purchasers looking to build their dream home. Factors to consider include the longer wait time to occupancy and higher costs associated with building a home during the pandemic.
More buyers in 2020 found the option to build new a wise choice. Demand for land and new construction is expected to be strong in 2021.