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Home values on the rise. What does that mean for you?

fall-2016Our Northwest Vermont Fall 2016 Market Report has just been released. Some home sellers may feel the real estate market has mirrored the bright colors we’ve been enjoying in our region, while buyers may be disappointed that inventory levels in the sub $300,000 continue to fall.

Home values are continuing to appreciate in Northwest Vermont, thanks to stronger local and national economies. First-time home buyers are returning to the market because of low mortgage rates and relatively high rents, which are pushing some renters to consider buying their own properties. Nevertheless, our market is facing some headwinds: low inventory in some price points and affordability. During the first 9 months of 2016, the median sale price for residential properties rose 3%, while the number of sold units increased 4%.

The luxury market in Northwest Vermont offers more depth of inventory than mid-priced homes, although buyers may find fewer choices than a year ago. In contrast, inventory in Mult-Family market continues to be tight with demand from buyers remaining far ahead of supply.

Chittenden County
Tight inventory levels in the region’s most active real estate market are leading to higher home prices while moderating the number of residential sales. Through September, the number of home sales was unchanged, while the median sale price rose 4 percent. Finding a home in the most sought-after price range of $200,000 to $300,000 has become more challenging, especially as new home listings declined by 8 percent and 25 percent, respectively, in Chittenden County and its biggest city, Burlington. See a town by town snapshot of Chittenden County

Addison County
Homebuyers are turning to Addison County as an alternative to higher-priced Chittenden County. Still, while homes are more affordable in Addison County, it’s also witnessing lower inventory levels, which means fewer choices for buyers. Retirees and professionals are also seeking lakefront and mountain-view properties for second homes. While the number of residential sales is unchanged from a year earlier, the median sale price has increased 4%. More on Addison County including the top 5 towns.

Franklin County
Home buyers are turning to Franklin County as an alternative to higher-priced Chittenden County and as local employers such as A.N. Deringer ramp up hiring. Our Realtors are finding that well-priced properties in desirable locations are selling extremely quickly. The number of sold listings jumped 22% for the first nine months of 2016, while the median sale price rose 7%. More on Franklin County including the top 5 towns.

Grand Isle
Grand Isle’s median sale price rose 10%, while the number of sales rose 2%. Towns such as South Hero are popular with second-home buyers and professionals who commute into other Vermont counties. Because Grand Isle is Northwest Vermont’s least active county for real estate transactions, a small number of sales can have a relatively large impact on pricing trends. More on Grand Isle County