Published August 3, 2023
July 2023 Vermont Real Estate Market Update
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July was certainly an interesting and unexpected month from the especially hot and humid weather, to the disastrous flooding that many Vermonters experienced and then the quick change to some fall-like temperatures this past weekend. We also saw some changes in the real estate market as well with buyers being more hesitant to act, some homes sitting on the market longer and maybe it’s the summertime weather, interest rates, the economy, the flood or a combination of them all, but over the last few weeks, the pace of the market seemed to slow a bit overall.
Noteworthy Highlights:
• New Listings are down 7% from July of last year and 21% from just last month. With interest rates only seeming to continue going up and prices remaining steady, it has sidelined sellers who may no longer be able to qualify for the size of mortgage required to make a move.
• The Median Days on Market is up by one day year over year and month over month, which doesn’t look like a lot but we have definitely been seeing some homes that area taking a little bit longer to sell.
• We have seen an increase in price adjustments being made - in July alone 80 homes reduced their prices.
• When we look at single-family homes and condos in the entire state, so far this year (YTD), new listings are down almost 22%, home prices have risen by 3.5% and buyers are paying right around the listing price for properties, whereas in 2022 they had paid an average of 2.44% over the listing price.
• We know that some parts of the state see market changes before some of the other areas, so if we look at just Chittenden and Franklin counties, YTD new listings are down 19.2%, home prices have increased by 5.3% and buyers are paying an average of 3.6% over list price so far this year compared to the 5.8% over that they were paying last year.
• As a whole, prices are still increasing but the rate at which buyers are paying over asking is slowing to help offset what continues to feel like rising home prices. The Median Sales Price in Chittenden and Franklin counties is up by 6.8% year over year, though it did come down 1.2% from June to July of this year and buyers in July 2023 paid 4% over list price versus 6.3% in July of 2022
Noteworthy Highlights:
• New Listings are down 7% from July of last year and 21% from just last month. With interest rates only seeming to continue going up and prices remaining steady, it has sidelined sellers who may no longer be able to qualify for the size of mortgage required to make a move.
• The Median Days on Market is up by one day year over year and month over month, which doesn’t look like a lot but we have definitely been seeing some homes that area taking a little bit longer to sell.
• We have seen an increase in price adjustments being made - in July alone 80 homes reduced their prices.
• When we look at single-family homes and condos in the entire state, so far this year (YTD), new listings are down almost 22%, home prices have risen by 3.5% and buyers are paying right around the listing price for properties, whereas in 2022 they had paid an average of 2.44% over the listing price.
• We know that some parts of the state see market changes before some of the other areas, so if we look at just Chittenden and Franklin counties, YTD new listings are down 19.2%, home prices have increased by 5.3% and buyers are paying an average of 3.6% over list price so far this year compared to the 5.8% over that they were paying last year.
• As a whole, prices are still increasing but the rate at which buyers are paying over asking is slowing to help offset what continues to feel like rising home prices. The Median Sales Price in Chittenden and Franklin counties is up by 6.8% year over year, though it did come down 1.2% from June to July of this year and buyers in July 2023 paid 4% over list price versus 6.3% in July of 2022
So What Can You Expect to See Moving Forward?
As we move into the end of the summer, school will start back up which means families will be taking their last summer vacations and getting into back to school mode. Historically this tends to bring a bit of a slow to the market for a few weeks, and we expect that will be the case this year as well. With interest rates trending in the wrong direction much of the year, what will happen with those remains to be seen.
As is the case when the market changes and adjusts, there is usually one group who is a little slower or more resistant to catch on, and that will be sellers who will have to adjust to these changes and understand that they may not get as much for their home as they had originally thought or hoped, especially if their home is not move-in ready. Homes that come on the market priced too aggressively or that are in rougher condition will be the homes that you see remain on the market. We do tend to see this each year, but typically it is a little bit closer to fall time.
Buyers have recently been a little bit more willing to take their time and spend some more time on the sidelines before jumping in with an offer (on some homes, certainly not all), so we have been seeing and hearing of more scenarios where a property is getting good showing activity and great feedback that offers are coming, yet it’s taking longer to actually get the offers in hand and some of those buyers are changing their minds and deciding not to write an offer after all. If you are a buyer in the market, remember that while they may not seem appealing on the surface, the overpriced or less move-in ready homes are sometimes great opportunities because you can have some room to negotiate and maybe even be able to negotiate in a home inspection if you want one!
Want to know more about the current market, where it's headed, and what your options are? Reach out to talk further.
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