August 2025 Vermont Market Update: More Inventory, More Strategy, More Opportunities

As summer begins to wind down, the Vermont real estate market is holding steady—with some numbers climbing, others cooling, and plenty of nuance underneath the surface. Inventory remains elevated, pricing continues to matter more, and both buyers and sellers are showing signs of adapting to today’s more balanced conditions.

Here’s what the August data is telling us—and what it might mean heading into the fall.

Inventory Is Still High—but Softening Slightly

Active inventory across Chittenden, Franklin, Lamoille, and Washington Counties was down 4.7% compared to August 2024—and fell nearly 18.5% from July. While this may suggest fewer new listings came to market in August, we’re still well above the ultra-low levels seen during the pandemic.

What this means:
Inventory is still giving buyers more breathing room, but sellers who waited until later in the season may be facing a bit less competition now. If you’re thinking about listing this fall, this could be an opening—but pricing and presentation remain crucial.

Buyer Activity Is Still Solid—Though Leveling Off Slightly

Contracts are still being written:

• 356 homes went under contract in August (a 19.9% increase year-over-year)

• Compared to July, that’s a slight 2.5% dip

Closed sales were also up slightly—360 homes sold, a 7.8% YOY increase and essentially flat compared to July.

What this means:
Buyers are still active and closings are happening, but the slight month-over-month dip in contracts reflects a bit of seasonality and possibly some buyer fatigue. Fall will test how committed buyers are as weather cools and interest rates remain a key factor.

Homes Are Sitting Longer—Again

• Average Days on Market: 32 days (+28% YOY)

• Median Days on Market: 10 days (+25% YOY)

What this means:
Buyers are still buying, but they’re in less of a rush. They’re comparing more properties, negotiating harder, and walking away when homes don’t align with their expectations—especially when it comes to price, condition, or location.

Pricing Trends Show Market Shifts—But Not Collapses

Both average and median sale prices were up year-over-year, with a slight increase over July:

• Average Sale Price: $574,515 (+8.6% YOY / +2.0% MOM)

• Median Sale Price: $500,000 (+4.3% YOY / +5.5% MOM)

However, list-to-sale ratios dipped again:

• Average: 99.33% (down from 100.77%)

• Median: 100.20% (down from 102.13%)

What this means:
The pricing story is nuanced. On paper, prices are up—but sellers are also negotiating more and fewer buyers are paying over asking. Price reductions are up (316 this month, a 2.6% increase) and buyers are showing more resistance to overpaying, especially on homes that aren’t fully move-in ready.

More Listings Are Failing to Sell or Falling Apart Mid-Deal

• Price Reductions: 316

• Back on Market: 46 (–8.0%)

• Expired/Terminated Listings: 88 (+39.7%)

What this means:
We’re seeing a growing divide between well-prepared homes that sell quickly and listings that sit, stall, or fall apart. The increase in expired listings is especially telling—if homes aren’t priced right or marketed effectively, they’re simply not selling. On the buyer side, more deals are still falling apart during contingencies, reinforcing that inspections, financing, and realistic negotiations are back in full force.

Luxury Market Rebounds (at Least for Now)

• 28 homes over $1M sold in August, compared to just 12 in August 2024

• That’s a 133% year-over-year increase

What this means:
After a slower summer start, luxury sales jumped in August—suggesting that high-end buyers are returning with confidence, or that pricing may have hit a sweet spot. Whether this trend continues into fall remains to be seen.

Final Thoughts: A Market That Rewards Strategy

The Vermont real estate market is not cooling—it’s normalizing. For the first time in years, both buyers and sellers are on more even footing.

Sellers:
Don’t mistake rising prices for rising demand. Pricing too high or skipping preparation will backfire. Strategy, staging, and realistic expectations will be the difference between sold and stale.

Buyers:
You’ve got more leverage, more time, and—depending on the property—even the ability to negotiate contingencies again. But with fewer new listings coming online, the best-prepped homes are still moving fast.

Need Help Navigating the Market?

Whether you're selling this fall or just keeping an eye on things, we’re always here to help you make sense of the data, understand your local market, and build a strategy that works for you.