In the Northeast, it comes as no surprise that seasonality plays a significant role in our housing market as it impacts housing demand and supply. Historically, summer has always been a frenzy with transactions and prices, while activity starts to slow down heading into the holidays. This season is no exception. We were still seeing decent inventory levels through mid-October, but the seasonal shift has definitely become apparent in our local market.
Our hot take on the current market: buyers that were actively searching over recent months, and even during the pandemic were finally able to secure a home once the market began to soften this fall. The willingness of new buyers to compete at the same level as the pandemic frenzy has dropped considerably in lieu of recent hikes in interest rates. While the Fed has taken an aggressive approach to inflation control (with another 75 point increase on 11/2), new buyers requiring financing are proceeding with caution before making a move.
Sellers: this is not 2021. Buying power has softened and while demand still outweighs supply, price reductions and concessions are on the horizon. On a national scale, home sellers on average have accepted offers below their list price over the past month - a further indication of rebalancing in the housing market. Nevertheless, the market will continue to remain competitive due to tight inventory, however pandemic pricing with waived contingencies will be a thing of the past.
While this might spell bad news for sellers, it is welcomed news for buyers. Unfortunately, buyers still have those high mortgage rates to consider. If prospective purchasers sit on the sidelines as a result, the silver lining will be an increase in housing inventory. This in turn could put further pressure on sellers to lower their prices - all of which signify a long-overdue course correction for the housing market.
If you are feeling like you missed the boat to sell your home, rest assured, we are by no means out of the harbor. This softening of the market is normal and needed for our current economy. While ambitious pricing will likely fall under market scrutiny, strategic sales will still reap tremendous rewards for home sellers in the upcoming months.
Washington County:
Single Family Market Statistics sourced from NEREN.com
In Montpelier, there were 4 new listings and 5 closings in October. Median days on market was 8 and median sales price was $315K. Compared to this time last year, new listings went up 33.3% and sales price decreased almost 20%.
In Barre, there were 14 new homes for sale and 24 closings for single family homes. The median days on market was 6 and median sales price was $250K. Year over year, this is a 6.67% decrease in listings and a 10.5% decrease in sales price.
In Waterbury, there were 4 new listings and 9 homes sold last month. Median days on market was 6 days and median sales price was $460K. This is a 50% increase in new homes for sale with only a 0.6% increase in sales price.
Across Washington County, new listings were only down 2.4% from this time last year. Closed sales for single family homes were down almost 22%, with the median sales price down 14.9% for October at $300K.
Lamoille County:
Single Family Market Statistics sourced from NEREN.com
In Stowe, last month saw 8 new single family homes come to market with 6 sold. Compared to this time last year, that is a 60% increase in new listings while sales saw a decrease of 54%. This was an unusual change from the long-standing pandemic trend. The median sales price for Stowe was $1,309,500. This is an increase of 45%, year over year.
Across Lamoille County, there were a total of 28 homes to hit the market last month. The median days on market was 14, and median sales price was $450K. Year over year, days on market is up 55.5% and sales price increased only 1.12%.
Chittenden County:
Single Family Market Statistics sourced from NEREN.com
In Burlington, there were 17 new listings and 15 sold homes last month for single family homes. The median sales price was $510K with 6 days on market. Compared to this time last year, there were 10% fewer listings and sales price increased almost 12%.
Across Chittenden County, new listings only took a slight 2.8% dip whereas closed sales dropped almost 30% compared to this time last year. Median days on market remains competitive at 7 days with a 25.6% increase in sales price.