What a Difference a Year Makes
It was only about 12 months ago that there was still so much uncertainty in our communities. We are grateful to live in a state that by most accounts handled the pandemic better than any other and was the first to reach an impressive 80% vaccination rate. Through all the challenges and successes that COVID brought about, visitors and homebuyers alike have continued to flock to our area to invest in the lifestyle so many others before them have come to appreciate and enjoy. Many towns throughout the country have seen the same trend, but our area remains unique in so many ways and therefore continues to be a highly sought after 4-season destination.
Homeownership has become more important than ever, and although inventory is still lower than what used to be considered normal, we’ve been able to accommodate most buyers’ needs by getting them into homes, rentals, commercial opportunities, or land. We have seen a steady increase in demand for real estate investment in our area, which we anticipate will continue. Additional choices become available for buyers this time of year as more properties typically come onto the market. Overall, there were large increases in the number of residential sales across our market area, and with land parcels as well. Home and condo sales more than doubled in Stowe for Q2, and significant increases were seen in Lamoille North and Waterbury.
Selling prices for homes in Stowe continued to rise, and properties went under contract more quickly than last year. Despite low inventory levels, the number of sales was up over 100%, and the average sale price increased again.
Half of the sales were $790K and above, with a high of $3.4M; and just shy of half of them sold at or over the list price. The number of available homes listed at the end of Q2 was almost 6% lower compared to last year, many of which were listed for $1M and over. There were 18 homes under contract at the end of the quarter, ranging up to $1.5M. This was slightly less than last year which is likely due to fewer listings being available.
The number of buyers searching for luxury properties in Stowe was no different than those looking under $1M; as a result sales in this category nearly doubled. Over 30% of residential homes sold for over $1M. The average selling price was $1.871M, up 28% from 2020; and the median price was nearly as high. 33% of the closed luxury home sales transferred over $2M.
Luxury properties flowed through the market more quickly than less expensive homes, with an average number of days on market at only 22. The most expensive sale during Q2 was $3.4M compared to a high of $2.1M last year. Almost half of the sales were at list price, or over.
The active listings declined by more than half, the most expensive of which was $11.9M.
Condominiums in Stowe continue to be a very popular option, but inventory is slim. Condominium sales more than doubled, and pending sales were stronger than ever - nearly twice as many as the number of single-family homes that were pending. Sale prices ranged from $210K to a high of $2.95M. There were many more transfers over $1M than seen last year, and the average and median prices for condos saw big gains, but sale prices were still much lower compared to home sale prices in Stowe.
Land sales in Stowe nearly doubled compared to 2020, due to buyers' willingness to consider building as a result of limited housing choices. Prices ranged from $115K to $1.65M. Most of the sales were under $205K, and the average days on market dropped dramatically. The average price was much higher due to 2 sales well over $1M. Declining inventory left only 7 listings left for buyers to choose from.
Buyers who are looking for more housing options including affordability have more to choose from in towns north of Stowe. Data from the second quarter in this area, consisting of 9 other towns in addition to Stowe, showed similar trends of upward pricing for homes, condos, and land. The number of sales increased overall, and new listings added actually increased, mostly in Morristown and Hyde Park. Days on market for all property types fell on average, highlighting elevated demand in this region. The number of condo sales overshadowed that of home sales, but ultimately there were fewer to choose from.
Average and median home sale prices rose to new highs, $435K and 369K respectively. Only 7% of the homes sold over $1M.
Demand for land was high in this area too, with sales increasing almost 5-fold. Closed prices ranged from $20K - $572K, and the average price of $113K was actually lower by the end of the quarter than the year prior, offering continued affordability. The number of days on the market trended much lower, and active listings were still in limited supply, all showing continued demand for housing alternatives.
Waterbury remains extremely popular, yet compared to surrounding areas, there is still the least to choose from there. New listings added in Q2 rose enough to help spur a huge increase in sales, yet there were only a total of 10 single-family homes for buyers to make an offer on, which is fairly typical. Following current trends, the average number of days on the market went from 113 down to only 27. As a result of the high buyer demand, the average and median prices rose by 59% and 56% respectively. The average price for sold homes was $685K.
There were only 3 condominium sales in Waterbury. And although there were only 5 Land sales in Q2, it was 5 more than in 2020. The average selling price for those was $181K. Lots were slower to move there, with an average of 179 days on the market. Only 5 lots were available, and 3 pending land sales were recorded, at the end of June.
As we progress through our most active selling season, more inventory will become available. With the addition of historically low-interest rates still in place, it is still a good time to buy. We are here to answer any questions, consult or advise, for whatever your real estate needs may be.