June 2021 Vermont Real Estate Market Update

Things certainly were heating up in June! We saw a major increase in homes hitting the market compared to last month and a huge boost in closings as well. Average days on the market improved only slightly and home prices went up a marginal amount compared to what we'd been seeing in previous months. So what does this mean looking ahead?

Now that Vermont hit the 80% vaccination mark, the entire state opened up! Long-awaited, people have begun taking advantage of travel, activities and get-togethers, not to mention the gorgeous weather we've been having – which has resulted in a bit of a slow down for some segments of the market, evidenced in the decreased number of homes that went under contract in June. People finally are allowed to have better things to do than shop for a home!

More Listings, More Choices

The last time we saw over 400 listings come on the market in a single month was in May of 2019 and back then the average days on the market was 64 and the average sales price was only $339,000! This surge in new inventory coming on the market means that buyers have more choices than they have in a very long time - and they have higher standards around what they’re willing to spend their money on. Buyers want move in ready and with prices at all time highs they are not as willing to tolerate outdated homes that need work or that have not been properly cared for. It also means that where we may have been seeing buyers offer on homes that were overpriced to begin with, they may now pass in favor of homes that are more up to date and priced more appropriately – i.e. they want what they want and we think they should get it! Gone are the days of slapping any price you want on your house and easily getting it. The homes we're seeing sit on the market and not sell quickly are the ones that overestimated the market or the ones that are in need of some major updating. That being said, if your home is completely turn-key, you can still get that premium you’ve been hoping for!

Home Prices Beginning to Level Out?

While there was a pretty significant jump of almost 20% year over year, we saw a much smaller increase in the average sale price from May to June than we have been seeing month to month over the last year. More listings and the promise of a return to reality has started to level things out and skyrocketing prices may have come to an end. This in no way means that prices won’t continue to increase, but we do not expect to see them climb at the extremely rapid rate that they have been over the past year.

So what can you do if you’re thinking of selling your home? Hiring a great agent is always a great start, but you may also want to think about doing some of your deferred maintenance items as well as making updates where necessary. Don’t want to do any of that? Then you may just have to a bit more realistic about the price you’re asking and expect to be on the market for a bit longer than you might have originally thought.

And as for buyers, it’s much of the same – we’re still seeing a lot of competition out there and homes that are selling quickly and above asking, except now there’s a few more homes to choose from! Interest rates are currently hovering around 3.25%, but financial experts say we may see those start to rise in the coming months.

We love to talk real estate, so for more real estate news and advice, call or text (802) 238-1323, or message us – we’re always happy to chat!

Our Advice to You

The numbers don’t lie - now is an excellent time to consider selling your home, and an extremely competitive time to purchase. We can provide you with the knowledge and confidence to be successful in all areas of the current market - message us or call us at (802) 488-3487 today to begin the conversation and learn more about what teaming with Templeton can mean for you!