Hottest Real Estate Markets in Vermont
The current Vermont real estate market is a hot topic these days. Inventory is low, and when houses do make it to market, they are listed for top dollar, which makes the idea of selling very attractive to those who want to move. Many offers for homes are made well over asking, with few contingencies, no inspections, and all cash. And the crazy part is, many of those offers aren't accepted.
While the whole state of Vermont is a hot market right now, we identified a few of the top towns where homes are priced high and selling fast! Before we dig in, let's take a look at the perks of selling your home in this market:
Homes are Selling at a Premium
The intense buyer demand is driving prices higher and higher. Take a look at our recent market outlook to see how prices are trending and what we expect for 2022.
Buyers are Likely to Waive Contingencies and Inspections
If you own an old farmhouse with a chimney that needs to be repointed and windows that need to be replaced, you might be in luck. Buyers in this market are overlooking these issues to make their offer more attractive to sellers like you. It is important to note, however, that even though buyers are willing to waive inspections and toss contingencies out the window, it is important to disclose any issues you are aware of with the property when listing your home.
You Have a lot of Leverage
Suppose there are only two homes on the market in your town, both of which are vastly different from your own home. This puts you, the seller, in the driver's seat. With such high demand, we can expect multiple offers and few contingencies. This allows you to pick the offer that matches (or exceeds) your asking price, closes in a time frame that works for you, and won't get hung up waiting for financing, inspections, or another home sale.
What Makes a Market Hot
You might be wondering how we define a "hot market"? First, let's take a look at how inventory works. When someone decides to sell a home, that home is an "active listing," which becomes "inventory" in the housing market. If the seller gets an attractive offer, accepts, and goes under contract, the home is then considered a "pending sale". According to the National Association of Realtors, the total inventory is calculated monthly by "taking a count of the number of active listings and pending sales on the last day of the month. If the inventory is rising, there is less pressure for home prices to increase."
Since we know that inventory is low and demand is high, it is understandable why median home prices are climbing. So what does this mean for months' supply, and what does months' supply even mean? The term refers to how many months it would take for listed homes to sell, given current home prices. For example, If we look at the national numbers from December 2020, the month’s supply was at 1.9 months, a new record low. Those numbers tell us that it would only take 1.9 months for the inventory of homes to be depleted at the current pace of sales.
These numbers are forcing potential homebuyers to look outside their desired neighborhoods and start considering the lesser-known towns and cities. These might be a little further from where they wanted to be but that still offers the best of Green Mountain living. Areas like Burke, St. Alban's, Peacham, and others have gone from sleepy little towns to growing communities that offer those relocating to the area a taste of life at a slower, more traditional Vermont pace. If buyers are set on more popular locations, they need to be ready to jump as soon as the home they want hits the market. Our top three tips are: have a strategy, remove contingencies, and make sure you sell before you buy. Check out our recent post on how to get tactical when buying in this market!
A quick note on absorption rates!
A market’s absorption rate is a traditional metric to gauge how fast homes are selling over a given time period. It’s calculated by dividing the number of homes sold by the total number of available homes. An absorption rate over 20 is often considered a sign of a hot, seller’s market. But Vermont absorption rates have been hovering around 2 for a few years. So what gives? Our historically low inventory is preventing the rate to climb. Homes are selling so fast and so few are hitting the market that the rate isn’t a true indicator of a hot market.
- Vermont Real Estate Company Hotness Score calculated over Q4 2021 w/ min. listing price of $100k and max. of $1m by Zip Code.
- Source: New England Real Estate Network
- All information is deemed reliable but is not guaranteed and should be independently verified.
So, Which Vermont Markets are the Hottest Right Now?
Stowe
Median Listing Price = $740,000
Months of Inventory = 1.22
Widely considered the ski capital of the East, Stowe is a dream come true for avid outdoors people. Located in Lamoille County, there is always something to do in Stowe, given its proximity to the mountains. The Stowe community consists of active folks looking to enjoy nature or simply take in the views. This scenic mountain town is home to the tallest mountain in Vermont and a favorite ski destination, Mt. Mansfield and Spruce Peak. Locally, you can find great employment opportunities through Vail Resorts, Inntopia, Keurig, and other Vermont-based organizations. The Stowe school district is highly rated and noted for public and private schools with incredible teachers, academics, and athletics.
In this area, homes on the market are primarily single-family, high-end homes that buyers might be looking to make a primary residence, a second home, or an investment property. With inventory being so low and demand so high, you can expect to prepare an offer of 15-25% over asking with no contingencies, cash, and waive inspections. Some other options to consider in the area are condos and townhomes. While these are a bit lower in base price, they are still in high demand. Be sure to factor HOA fees into your budget if you're ready to make a move.
If you can't find a place to land in Stowe, consider looking in areas close by like Waterbury and Morrisville.
Arlington, Sunderland, Sandgate (Bennington County)
Median Listing Price = $644,950
Months of Inventory = .93
Tucked in the southwestern corner of Vermont, the neighboring towns of Arlington, Sunderland, and Sandgate offer bucolic, Vermont country living. Nestled between the Taconic Mountains and the Green Mountains, these towns are home to the Battenkill River, known for its legendary trout fishing. The area is steeped in history and charm and provides residents convenient access to the mountains for skiing and hiking and other destinations like Boston, MA, Portsmouth, NH, and Albany, NY.
Listings in this area are few and far between, offering buyers only a few single-family homes or acreage options for a new build.
Though this may be frustrating for anyone looking to move to this area in the near future, it's the perfect scenario for anyone in these towns wondering whether now is a good time to sell. Bennington County and neighboring Windsor and Rutland counties are good options for those who can't find the right home in Arlington, Sunderland, or Sandgate.
Burlington
Median Listing Price = $629,950
Months of Inventory = .87
Burlington is a diversely populated city surrounded by beautiful geography and steeped in arts and culture. Burlington is a lively 'college town' home to the University of Vermont and Champlain College. The city hosts one of the state's largest year-round Farmers Market.
Located only 100 miles south of Montreal and a little over 200 miles north of Boston, Burlington is close enough to major metro areas while still offering the fresh air Vermont is known for! In addition, close proximity to the interstate and Burlington International Airport make the city incredibly accessible.
The inventory in Burlington has a little bit of everything from large single-family homes to condos, large multi-unit properties, modest single-family homes, and even a land listing or two. Burlington is a popular investment spot for anyone looking to buy something that can provide a secondary or primary income while the market is hot. If your search in Burlington is coming up empty, consider checking out Winooski, South Burlington, or Essex.
Colchester
Median Listing Price = $625,000
Months of Inventory = .93
Only 15 minutes from downtown Burlington, the town of Colchester provides a pleasant blend of town and country. Colchester is a popular place for new families and young professionals. The town is located on the shore of Malletts Bay, which is a part of Lake Champlain. Colchester offers stunning views and many recreational activities along the bay. Schools in this area are highly ranked, and there are limitless opportunities to explore all the perks of life in Vermont from this centrally located, idyllic lakeside community.
Currently, the homes that make up this area's active listings are townhomes, duplexes, single-family homes, new builds, and a few plots of land. Colchester is a trendy area that is great for sellers, but if you are looking to buy and can't get into this market, check out Westford, Jericho, or Milton.
Wilmington, Dover, Searsburg (Windham County)
Median Listing Price = $603,500
Months of inventory = 1.34
Wilmington is home to one of the hottest markets in Vermont and is stunningly beautiful in all four seasons. With easy access to year-round activities, a safe and tight-knit community, and a great school system, this area is ideal for anyone looking to take advantage of all that Vermont has to offer. Searsburg is located just to the west and very similar in being popular with homebuyers and offers endless opportunities to explore the rural countryside, breathtaking mountains, classic Vermont communities, or its bustling town center.
Dover is also a highlight of this southern Vermont area, located along the spine of the Green Mountains. It’s home to Mount Snow which is a destination for any level skier or rider, while the community is full of lovely housing developments and a number of accessible recreation opportunities.
Many locals and visitors enjoy outdoor recreation at Stratton Mountain, Mount Snow, and the Green Mountain National Forest. Other notable activities in this area include visiting the Brattleboro Museum and Art Center, checking out exciting events like the Winter Carnival, their local film festival, Southern Vermont Dance Festival, and more! Brattleboro is also the region's hot spot for commerce, finance, and technology, but it has also been cited as one of the top ten best small art towns in America!
Listings in this area currently consist of large, single-family homes, a few smaller single-family home options, very few condos, but several land listings. Windsor and Bennington Counties are close neighbors to this popular area and are great options to consider if you're ready to move but can't find the right fit in Windham County.
Considering selling your home? We are here to help you every step of the way! From how to list your home, advising on the current value and appropriate listing price, combing through your offers, to finding a new home and how to make it yours, we are here as your real estate experts. Have questions or want to talk about your options?
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