Since the second half of last year, real estate headlines seem to have done more to terrify than clarify, leaving consumers uncertain and cautious. We’ve seen questions around interest rates, inventory, and drops in home prices, all of which have led to buyers and sellers reconsidering their plans. However, this winter we saw buyers returning to the marketplace in earnest as markets and interest rates stabilized. Let us clarify - the market isn’t in a free fall; it is actually normalizing.

As the spring homebuying season approaches, we are patiently awaiting the influx of new homes to the market. Historically, this time is noted by increased market activity. While buyers are returning to the marketplace, it's been a slow spring for sellers on a national and local scale. Compared to this time last year, the number of single-family homes for sale is down 35% across both Chittenden and Lamoille counties. We did witness some flurries of activity last month, though current inventory levels still remain constrained across Vermont with buyers still outpacing the number of homes available.

Despite ongoing inventory concerns, there are some promising trends developing. On a national level, the median sales price was down 0.2% in February compared to a year ago. According to the National Association of Realtors (NAR), this ends a record streak of 131 consecutive months of year-over-year increases. In Vermont, we are seeing an inconsistent mix of increases and declines in sales prices compared to this time last year. It’s worth noting that while there may be a trending slowdown in price growth on a national level, our local markets still have high buyer demand and very limited inventory. Strategic home sales are still fetching top dollar in most local markets.

Mortgage rates, meanwhile, have ticked down in recent weeks, falling to 6.32% for the week ending March 30, according to Freddie Mac. The Federal Reserve did enact another quarter point increase on March 22nd, however it seems in light of the recent banking crisis and uptick in consumer confidence, we are nearing the end of rate increases.

While there are no perfect times to buy a house, there are optimal times to sell. Right now, demand is high with more buyers returning to the marketplace this spring season. Buyers, you may be facing multiple offer scenarios, especially on turn-key condition properties. Be prepared and be sure to have an agent in your corner who will help negotiate competitively on your behalf. Sellers, if you are considering making a move, there is a great opportunity to sell while inventory levels are at historic lows.

Overall, the housing market shows signs of continued stability and strength. Promising trends are coming to light, however inventory constrictions will continue to drive appreciation in the months ahead.

Chittenden County:

Single-Family Home statistics sourced from NEREN.com

In Burlington, last month saw 11 new single family homes brought to market. There were 6 homes sold with a median sales price of $525K. Year over year, sales were down 25% with sales price down 15%.

Across Chittenden County, there were 75 new listings and 55 sales for single family homes in March. The median days on market returned to the one week mark while median sales price took a slight 5% dip compared to this time last year.

Lamoille County:

In Stowe, there were 4 new single family homes listed with 5 sales last month. Median days on market was 42 days while the median sales price was $1.45M. 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 18 new listings with 14 sales. Compared to this time last year, median sales price experienced a 24.8% increase, with median days on market decreasing to the one week mark.

Washington County:

In Montpelier, there were 4 new homes brought to market and 5 sold last month. Median sales price was $281K for the month of March. Year over year, sales are up 25% and median sales price is down 3.5%.

In Barre, there were 10 new listings and 7 closings for single-family homes. Last month saw the median days on market to be an unusual 40 days.. The median sales price was $266K, an increase of 12.2% year over year.

In Waterbury, there were 4 single family homes listed and 6 sales for March. The median days on market was 14 days. There were no sales this time last year, unable to report year-over-year data.

Across Washington County, there were a total of 38 new single-family homes listed and 29 sold. Median sales price was $281K. Compared to this time last year, new listings are down 15.6% while sales price has increased 7.04%.

Franklin County:

Across Franklin County, there were 39 new single family homes brought to market. March saw 24 homes sold with a competitive median 12 days on market. Year over year, the number of new listings has declined 29% with an increased sales price of 14.7%.

Grand Isle County:

Across Grand Isle County, last month saw 11 new listings and 5 homes sold. The median days on market was 11 days and sales price was $364.5K. Compared to this time last year, there are 22.2% more homes for sale and median sales price is down 6.5%.

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