This past month we saw overall market activity trend downward compared to the month prior as interest rates touched 8% - a number we haven’t seen in 23 years! 

Noteworthy Highlights:

• Compared to October of last year, new listings were down 12.3% and from September they’ve dropped almost 21% in Chittenden and Franklin Counties. Statewide, though we only saw about a 12% drop from September to October.

• Across Chittenden and Franklin Counties, the number of properties that went under contract stayed about the same year over year and decreased 8.25% from last month, while closings were down by 16.5% from last October and just under 3% from where they were last month. Homes are also taking just slightly longer to sell - the median days on the market increased by 1 day. Total sales volume decreased by 16% from last October which is to be expected given the lower number of new listings and closings taking place. 

• Statewide, we saw a bit of a different story with a 2% increase in the number of properties going under contract and a 10% increase in the number of closings across single family homes and condos. Lamoille County alone had 40% more closings take place in October than in September of this year. Year over year, total sales volume across the state stayed very steady, increasing by only $300,000 this October compared to last. 

• The median home price grew by only 2.35% from last October and actually decreased from the month of September by 4.8% - showing that buyers in the current market are starting to see prices come down a bit! The average amount paid over the listing price also saw a bit of a dip - in October 2022 Chittenden and Franklin County buyers paid 2.4% over asking and this October they paid only 2.35%. In September this had dipped down to only .5%, so it’s back up a bit this month, however with the savings on the purchase price, buyers are still coming out ahead.

• We’re also still continuing to see a good amount of price changes across the market. We saw about 90 in the month of October compared to 103 in September. 

Even with the changes in activity, the real estate market remains very healthy overall - it’s typical to see a slow down around this time of year and paired with the current interest rates, it is no surprise that people who don’t need to move are choosing not to right now. That being said, while it may not feel like it at the moment, one of the better times to buy is when rates are higher and you start to see those savings on home prices. Remember, it’s easy to change or renegotiate an interest rate, but you can never change how much you purchase a property for, so you’re better off to take advantage of lower home prices and refinance when the rates inevitably see some relief. 

Curious about how much your home is worth right now? Find out using our free home value tool.