May 2024 Vermont Real Estate Market Update

A Surge in New Listings and Market Activity

May came in strong, with new listings soaring by nearly 66% from April. Under contracts and closings followed suit - both up by about 20%. While it seemed like the year was off to a bit of a slower start than usual, the Vermont real estate market is certainly heating up now!

Market Speed & Days on Market 

Homes are still selling quickly, though we have seen a slight uptick in the days on market compared to last year. The median days on market went from 5 days last May to 7 days this May, though it is down from 8 days in April. While a couple of days difference may not sound like much, more time on the market can be helpful for both buyers and sellers as it helps give buyers a little extra time to see the property and get their offer put together, and more buyers seeing the home leads to more offers, which is always a good thing for sellers!

Changes in Home Prices & Market Dynamics

The list-to-sale ratio saw a notable adjustment. In May of last year, buyers paid an average of 103.7% of the list price, whereas this year, we're observing closer to 100-101% of the list price. This is a result of the higher home prices that we’re seeing in general, combined with the fact that there have been fewer buyers in the market (due to the current interest rates among other things), which can lead to having fewer and less competitive multiple offer situations. 

And while the list-to-sale ratio may have decreased, home prices have certainly not. Both year over year and month over month we have seen them rise, with an almost 19% increase compared to last May and a 15% jump from April. It's important to note, however, that this May a $14M sale closed and significantly skewed the averages. Last May the highest recorded sale was $2.8M, so if we remove the $14M outlier sale, the average sales price becomes $546,239 - still rising but with a more moderate 7.6% increase year over year and a 4.25% bump from last month. As we would expect, total sales volume follows, increasing by just under 20% from last May and 38% from April! 

The number of homes that went back on the market after going under contract was up from April, which is to be expected as the number of homes for sale increases. Price changes were also up 40% from the previous month. The moral of the story? Pricing strategy is and always will be a key component of your success as a seller. While some sellers are aiming high and getting their numbers, many are not. We know that overpricing leads to extended days on market and can result in your home selling for a lower sales price in the end, so that is why it's especially important to work with a team (like us ????) that customizes their listing strategy around your goals and your property to ensure your success. 

Looking ahead, you can expect to see a busy summer season with more new inventory hitting the market, and we'll still be navigating the complexities of elevated interest rates and home prices. As always, if you have questions, are looking for guidance or advice, or want to learn more about what comes next in your home buying or selling journey, reach out - we’re here to help!

Curious about how much your home is worth in the current market? Find out using our free home value tool.