It’s May, but the spring homebuying season has yet to bloom. At this point, there is a possibility that it may not happen at all. As we progress through this season, buyers and sellers are still in a stalemate. The ongoing problem is lack of inventory. With tight inventory in the housing market, prices have remained high, which in turn has created significant affordability challenges for many, particularly first-time homebuyers.

In Vermont, we are seeing some softening in the rural markets, but the demand for properties in urban and resort areas remains strong. Burlington is particularly competitive, especially for turnkey condition homes. Though home prices are not as eye-popping as in early 2022, how much further home prices soften this year will depend on the market demand and mortgage rates. “Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said Lawrence Yun, chief economist at NAR. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”

Locally, we are seeing fluctuations in market inventory. While single-family homes are limited and typically have been in decline in year over year comparisons, we are seeing a noticeable bump in attached style homes. Across Vermont, there was a 17.9% increase in attached style listings available in March compared to last year. While both property types are in a deficit compared to buyer demand (-35.8% SFR, -28.3% attached), the availability of condos and townhomes warrants buyer consideration if this property option would suit your needs.

Despite current challenges, there are still opportunities to be found. Buying a home - in any market - is a highly personal decision. Homes most likely represent the largest single purchase made in a buyer’s lifetime, it is crucial to be in a good financial standing before diving in. That said, for buyers sitting on the sidelines waiting to ‘time the market’, they may be disappointed. We do not have another 2008 headed our way. If you are looking to make a move, the best course is to buy a home based on your budget and needs. Discuss buyer programs with your lender, and keep active watch on available homes that suit your needs.

Chittenden County:

Single-Family Home statistics sourced from NEREN.com

In Burlington, last month saw 12 new single family homes brought to market. There were 13 homes sold at a fast clip - days on market back to under one week with a median sales price of $629K. Year over year, sales were down 18.2% with sales prices up 14.4%.

Across Chittenden County, there were 87 new listings and 54 sales for single family homes in April. The median days on market dropped down to 5 days while median sales price took a slight bump to 10.7% compared to this time last year.

Lamoille County:

In Stowe, there were 6 new single family homes listed with 5 sales last month. Homes sold in a median of 6 days while the median sales price was $940K. April saw an exceptional spring season for Stowe. Compared to this time last year, homes are selling 87.5% faster and 42.4% more for median sales price.

Across Lamoille County, there were 20 new listings with 14 sales. Compared to this time last year, median sales price experienced a 14.5% increase while median days on market doubled.

Washington County:

In Montpelier, there were 10 new homes brought to market and 5 sold last month. Median sales price was $500K for the month of April. Year over year, sales are up 25% and median sales price is up 17.3%.

In Barre, there were 21 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 $284K, a slight increase of 4.5% year over year.

In Waterbury, there were 5 single family homes listed and 2 sales for April. For this smaller sample size, homes sold in 36 median days for $787.5K median sales price. Compared to this time last year, days on market are up 63.6% while sales are down 50%.

Across Washington County, there were a total of 45 new single-family homes listed and 28 sold. Median sales price was $365K. Compared to this time last year, new listings are down 10% while sales price has increased 2.67%.

Franklin County:

Across Franklin County, there were 44 new single family homes brought to market. April saw 35 homes sold with a competitive median 8 days on market. Year over year, the number of new listings has declined 31.3% with a decrease in median sales price of 14.1%.

Grand Isle County:

Across Grand Isle County, last month saw 10 new listings and 7 homes sold. The median days on market was 41 days and sales price was $375K. Compared to this time last year, there are 33.3% less homes for sale and median sales price is unchanged.

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