Spring is on the horizon. What does that mean for the real estate market?

Buyer activity is certainly picking up in Vermont. The start of 2023 saw a lot of prospective buyers returning to the market due to declining mortgage rates. As that rush of activity has leveled off, we have seen sale prices respond with a continuation of their downward slide. There are mixed views as to how much more home prices will soften this year - but as demand continues to rise, the key market factor will be inventory.

The supply of available homes – particularly at the lower tiers – remains tight, which is contributing to the challenges that face first-time homebuyers in particular. To compound the issue, new home construction fell again in January. With demand far outweighing the low inventory levels, the perpetuation of housing affordability challenges will continue into the months ahead.

Price appreciation has slowed nationwide, with sales still remaining higher than a year ago. In Vermont, the median sales price for single-family homes was up 6.7% in February compared to a year ago, according to data from NEREN.com. However, January saw a 3.5% dip across Vermont, following a similar dip of 0.74% in December. While national sales have hit a record streak of 131 consecutive months of year-over-year price increases, our smaller local markets are more affected by the ebbs and flows of market conditions and seasonality. Overall, sales prices have continued a slight downward trend in month-over-month comparisons since their record high in June 2022.

While there are pockets of opportunity, you will still need to be prepared to act quickly when you find a home you like. We recommend getting pre-approved and connecting with a professional to start your home buying journey. Learn More about the Buying Process.

If you are looking to sell your home, there is still considerable opportunity to be had. Due to the continued imbalance between inventory and buyer demand over the past few years, home prices have appreciated substantially. While price increases have recently slowed, this does not mean the equity in your home has diminished. If you’re looking to make a move, the equity in your home can make a substantial impact. Consider reaching out to a professional to assess your options.

What's My Home Worth?

Chittenden County:

Single-Family Home statistics sourced from NEREN.com

In Burlington, last month saw 8 new single-family homes brought to market. There were 13 homes sold with a median sales price at $550K. Year over year, sales were up 117% with sales price up 64.1%.

Across Chittenden County, there were 57 new listings and 46 sales for single family homes in February. It was an unusual month with median days on market exceeding the two week mark while median sales price increased 25% compared to this time last year.

Lamoille County:

In Stowe, there were 7 new single family homes listed with 4 sales last month. Median days on market was 60 days while the median sales price was $1.46M. Seasonal factors continue to have an influence on this market - property location relative to the ski mountain seems to hold a strong correlation with buyer interest.

Across Lamoille County, there were 17 new listings with 14 sales. Compared to this time last year, median sales price experienced a 28.8% increase, however according to last month’s limited sample size, median days on market had a substantial increase.

Washington County:

In Montpelier, there were 2 new homes brought to market and 2 sold last month. Median sales price was $366K for the month of February. This month’s sample size was too small to report year over year data.

In Barre, there were 6 new listings and 6 closings for single-family homes. Last month saw the median days on market to be an unusual 64 days.. The median sales price was $225K, an increase of 51% year over year.

In Waterbury, there were 2 single family homes listed and 0 sales for February. This month’s sample size was too small to report year over year data.

Across Washington County, there were a total of 22 new single-family homes listed and 10 sold. Median sales price was $296K. Compared to this time last year, new listings are down 29% while sales price has increased 19.4%.

Franklin County:

Across Franklin County, there were 32 new single family homes brought to market. February saw 21 homes sold with an unusually long median days on market of 44 days. Year over year, the number of new listings has declined only 3% with an increased sales price of 32%.

Grand Isle County:

Across Grand Isle County, last month saw 4 new listings and 0 homes sold. This sample size for February was too small to report statistical change year over year.

Have questions about what this means for you and your home? Contact us today.