State of the Vermont Real Estate Market | Spring 2021

As we head into summer and emerge from the pandemic, Chittenden County and Vermont at large remains a highly competitive real estate market. Pre-COVID, our markets were pressured by low-inventory and high demand. The pandemic only increased this pressure. Over the last year an influx of out-of-state buyers, historically low-interest rates, and a reluctance from homeowners to list their homes for sale created a perfect storm that sent home values soaring to levels unseen in Vermont. 

Read our thoughts on COVID-19 sparking a real estate boom in Vermont.

Vermont home prices are climbing every month by multiple accounts. According to a recent Vermont Business Magazine article, Vermont home values increased 6.2% according to the RHPI model which “measures the price changes of single-family properties throughout the US adjusted for the impact of income and interest rate changes on consumer house-buying power.” 

The 6.2% increase is the third highest in the country behind Arizona and Wyoming.  

Furthermore, according to the Northwestern Vermont Board of Realtors, the median home price for single-family homes in March 2021 increased 14.4% to $350,000 compared to the same period last year. This reflects the national trend where median single-family home price increased 18% to $334,500 across all U.S. markets.

As well, new construction in Vermont is lagging behind the increased demand for homes. Contractors across the state faced work stoppages early on in the pandemic, creating construction delays for existing developments. Increasing costs of labor and materials means those looking to build will pay a premium.

Read more about buying land in Vermont and building your own home.

So what does this mean for buyers?

Buyers who are thinking about entering the market should start with a Vermont Real Estate Company agent. Our agents will help you get tactical and help you navigate this highly competitive market.

Create a Plan

Once you find an agent you’re comfortable working with, you will need to set your priorities. Understand your buying power with a pre-approval letter and start to break down your ‘must haves’ and ‘nice-to-haves.’ You want to be ready to make a competitive offer quickly. Homes are moving fast and multiple offer situations are common throughout the state. 

Be open to expanding your radius to neighboring towns and similar communities. While your heart might be set on Downtown Burlington or Shelburne, Winooski or Essex might offer everything you’re looking for at a more reasonable price. 

Multiple Offers and Contingencies

When facing multiple offers, be prepared to make concessions on contingencies. Flexibility on a closing date, waiving an inspection, and removing the sales contingency of your current home will make your offer more appealing to the seller. 

Patience and Mortgage Rates

Be patient with the market. While you might miss out on the first few offers you make, it is still a great time to buy a home. Mortgage rates are dropping again. This means your money will go much further than previous years. Your increased buying power means you can find great value with a lower monthly payment or buy more home within your means. 

So what does this mean for sellers?

Why Sell?

With low interest rates existing homeowners are in a great position to buy an equally valued home with a lower monthly payment. Alternatively, sellers can buy a more expensive home with the same monthly payment. Homeowners who sell now are going to get the most value for their homes considering the skyrocketing demand. Buyers across the state are removing contingencies, giving you a lot of leverage for negotiations. 

Meet with a Vermont Real Estate Company Agent and Prepare Your Home

Connect with one of our agents to better understand your position in the marketplace. There are quite a few steps required to get your home ready to sell before we list it. We can help you navigate the steps to list your home and provide a competitive market analysis to find the right price for your home.

Check out our pre-shoot checklist to get your home in shape before the first showings.

Be Ready for Buyers

We recommend that our sellers make plans to get away for the weekend due to the high volume of showings. Make plans to spend the day away from your home or make a (COVID-safe) trip to get away for the weekend. This will give our agents the flexibility to show your home all weekend without disturbing you.

Once offers start coming in, our agents can help you understand what contingencies are best for you as a seller. We can help you weigh each offer and make a decision that is best for you.

Be Strategic When Buying and Selling

It can be tricky to buy and sell in this competitive market. There can be a lot of stress as you juggle the sale of your current home while negotiating the purchase of your next. Check out our post about buying and selling at the same time to learn more.

The current competitive Vermont real estate market has its challenges, but you’re in good hands with a Vermont Real Estate Company agent by your side. Now is a great time to buy and sell your home. If you’re ready to get started, reach out - we’re happy to help!