Key Trends for 2024:
Market Stabilization: After several years of surging demand and skyrocketing home prices, the market in Vermont is beginning to stabilize. While prices remain high, the rapid appreciation seen during 2020–2022 has slowed down. Buyers are seeing more negotiating power as the frenzied bidding wars cool off.
Inventory Growth: We're seeing modest increases in housing inventory compared to previous years, which is helping to ease the tight supply issues. However, inventory remains below pre-pandemic levels, so competition is still a factor, especially for desirable properties in areas like Burlington, Montpelier, and the Lake Champlain region.
Impact of Higher Interest Rates: Rising interest rates in 2023 have started to influence buyer behavior in 2024. While rates remain higher than they were in the last few years, we’re seeing adjustments in home prices to reflect this change. Buyers are more cautious, and this is helping to moderate price growth in many parts of Northern Vermont.
Shift Toward Energy Efficiency: One of the growing trends is the increased focus on energy-efficient homes and sustainability. Vermont’s cold winters and high energy costs have made buyers more conscious of features like solar panels, energy-efficient windows, and better insulation. Homes that are updated with these features are commanding premium prices.
Continued Demand for Rural and Vacation Homes: The desire for rural living continues, with many out-of-state buyers (especially from cities like Boston, New York, and even Montreal) still eyeing Vermont as an ideal place for second homes or permanent relocation. Areas around Stowe, Jay Peak, and the Green Mountains are still in high demand for those looking for vacation properties or more space.
Affordability Challenges: Affordability remains an issue for many first-time buyers, especially as rising rates have increased mortgage costs. Some local residents are being priced out of certain markets, leading to more interest in smaller towns further from Burlington or Montpelier, where prices remain slightly lower.
What to Expect:
Slight Price Adjustments: As the market cools, expect moderate price reductions in 2024, especially in areas where prices had peaked.
Increased Focus on Affordability: More affordable housing options and new developments might become a focus in response to demand.
Long-Term Appeal: Despite these changes, Northern Vermont’s appeal remains strong for both locals and transplants, with its natural beauty and vibrant communities continuing to draw buyers.
If you'd like more specific insights into a particular area or have any questions about how these trends might affect your plans, don’t hesitate to reach out! 978-289-7000
