Mid Year 2016 market results & trends to watch for in Chittenden, Addison, Franklin & Grand Isle Counties. VermontMarketReport.com Westford Ferrisburgh Saint Albans City vveerrmmoonnttmmaarrkkeettrreeppoorrtt..ccoomm Front Cover Properties from left to right: MLS # 4505088, MLS# 4474309, MLS# 4504938 Coldwell Banker Hickok & Boardman Realty | Mid Year 2016 Historic 1859 Le Grand Cannon Estate carriage home built in style of French 2nd Empire. MLS# 4505106 W E L C O M E Please take a moment to look through our Mid-Year 2016 market report. Our skilled Realtors will also be able to assist you with in-depth views on specifi c towns and regions. Given our market-leading position, we are committed to providing unparalleled services to our customers. vermontmarketreport.com Market Trends Pastoral views from this thoughtfully converted & updated Vintage barn sited on 7.5 acres . Charlotte. MLS#4312672 The top-of-mind question with homebuyers and sellers in Northwest Vermont is whether the market’s recent healthy trends will continue. The answer, based on pricing and demand in the fi rst half of 2016, is a defi nite “yes,” although tight inventory levels remain an issue in Chittenden County. Demand was robust in the fi rst six months of the year, with the number of residential sales rising 5.1% across our region’s four counties. Pricing rose slightly, with a 0.5% gain, although the area’s busiest region – Chittenden County – witnessed a 4.7% gain in median sale pricing. Economic trends continue to strengthen in Northwest Vermont, with local businesses and institutions such as MyWebGrocer and University of Vermont continuing to hire. With new professionals moving to the region, they are spurring demand for both residential properties and rental apartments. The unemployment rate in Vermont stood at 3.1% in May, among the lowest in the country. $221,250 $202,000 $278,000 $215,000 +5.4% +3.1% +4.7% +0.7% The Coldwell Banker Hickok & Boardman Market Report is based on data collected from internal and external sources such as the Northern New England Real Estate Network and does not represent privately negotiated transactions unless so noted. All material herein is designed for information purposes only and has been drawn from sources deemed reliable. Though the data is believed to be correct, it is presented subject to omissions, errors, changes or withdrawal without notice. The report is not designed to solicit property already listed. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. All Offi ces Are Independently Owned and Operated. © 2016 Coldwell Banker Hickok & Boardman Realty. Coldwell Banker Hickok & Boardman Realty | Mid Year 2016 Enjoy the private pond and amazing views from this magical 3 bedroom and 2 bath mountainside home on 10 acres. MLS# 4488615 Still, several economic concerns at the national and international Some builders are responding by adding affordable housing level may be making consumers feel less confi dent, at least for units, while earlier this year a new coalition called Building the moment. Consumers remain “cautiously optimistic” about Homes Together was formed with the goal of adding 3,500 economic growth, according to the Conference Board’s June new homes over the next fi ve years. survey. The pending presidential election may cause some consumers to hesitate to commit to big purchases until after Act 46, the education governance reform law passed last year the vote. Additionally, the U.K. has voted to leave the European that calls for larger school districts, continues to evolve, with Union, which has added to concerns about the strength of the school districts and communities around the state evaluating international economy. school mergers. Because of these changes, we recommend homeowners and potential buyers discuss the possible impact The uncertainty has prompted the Federal Reserve to hold with their Realtor, local lawmakers and school board members. off on raising interest rates. The good news for the property market is that mortgage rates remain at near-record lows, Regardless of inventory levels, our Realtors are fi nding that which means lower borrowing costs for buyers or homeowners well-priced homes in good condition are enjoying strong who want to refi nance. demand from buyers. Before listing, sellers should consider upgrades and fi xing deferred maintenance issues, since buyers Yet even with those low rates, affordability remains problematic, may be less likely to bid on a home that needs work. “Smart- most notably in Chittenden County. Some buyers are seeking home” technology, for temperature control, lighting, and housing in lower-cost counties such as Franklin and Addison security, may also help your home stand out, especially with Counties. Within Chittenden County, the most sought-after tech-savvy buyers. housing is in the $250,000 to $400,000 range, although the market is suffering from low inventory in that segment. Coldwell Banker Hickok & Boardman Reality is forecasting continued steady growth in pricing and sales for 2016. Based Because of those trends, fi rst-time home buyers, especially on current trends, we believe sales volume may rise about 5 those in the millennial generation, may either remain renters percent, while pricing could gain about 1% to 2%, or similar to or make sacrifi ces to purchase their fi rst homes, such as the national forecast from the National Association of Realtors. looking farther afi eld for property or buying a home that needs renovation. First-time homebuyers are returning to the As always, it remains that both sellers and buyers need to market, however, with a Coldwell Banker Hickok & Boardman refl ect on their personal situation. Utilizing the local knowledge Realty survey last year, we fi nd that 37% of our clients had within this report and the advice of your agent – you can make just purchased their fi rst home, close to the typical 40% of the an informed decision about your next move. market. vermontmarketreport.com Striking Hill Section home with lake & mountain views. Burlington. MLS# 4496202 3,000 JANUARY-JUNE 2016/2015 2,500 2,000 1,500 1,000 500 +5.1 -7.7 +0.8 2016 2015 2016 2015 2016 2015 1,358 1,292 2,515 2,724 1,606 1,593 Coldwell Banker Hickok & Boardman Realty | Mid Year 2016 Luxury Sit back, relax, and enjoy this updated 3 level Townhome at Shelburne Cliffs. MLS# 4491232 After a slow start to 2016, the luxury market picked up as warmer weather arrived. During the fi rst half of the year, the region recorded 18 sales of properties priced above $800,000. Unlike the mid-priced segment for homes below $400,000, the luxury market continues to have deep inventory. As a result, the luxury segment remains tilted in favor of buyers, with some homes requiring years of marketing before the right buyer becomes interested. Some sellers have lowered their price expectations as a result of these dynamics. The Northwest Vermont real estate market currently provides an excellent variety of choices for high-end buyers, given the number of luxury lakefront estates and mountain homes that are now available. While Shelburne remains a popular location for luxury buyers, we have seen few sales over $800,000 in many surrounding towns including Burlington, Charlotte, Williston, and South Burlington. Inventory Concerns Because of the high inventory levels for homes priced above $800,000 and the time required to sell them, some buyers remain hesitant to commit to a purchase. Executives who are relocating to Vermont and may only remain in the state for a few years may be especially concerned about these trends. Waterfront Properties Buyers returned to waterfront properties this year. Almost half of the sales so far have included access to Lake Champlain. The three highest-priced sales represented homes situated on the lake. Prepare for the Summer As buyers continue to search for property this summer and fall, sellers should prepare their homes to be competitive in the luxury market. Competitive pricing and addressing deferred maintenance, landscaping issues, and decluttering remain essential. vermontmarketreport.com Market Insights • The median luxury sale price stands at $987,000 • Inventory levels remain deep, providing buyers with choice and negotiating leverage 632 Hills Point Road : Charlotte $800,000 1285 Spear Street : South Burlington $815,000 JANUARY-JUNE 2016/2015 5500 U.S. Route 2 : North Hero $815,000 135 Pond Road : Shelburne $853,000 551 Mile Point Road : Ferrisburgh $860,000 860 West Street : Cornwall $880,000 102 Lucy's Lane : Charlotte $915,000 78 Jasmine Lane : Williston $955,000 947 Oak Hill Road : Williston $980,000 Lot#91 Golf Course Road : South Burlington $993,590 Lot #7 Sugarwoods Lane : Shelburne $1,013,917 2438 South Bingham Street : Cornwall $1,070,000 112 Pine Haven Shores Lane : Shelburne $1,100,000 Lot #93 Golf Course Road : South Burlington $1,347,542 823 Shelburne Hinesburg Road : Shelburne $1,575,000 6954 Route 17 : Addison $1,900,000 190 Lands End Lane : Shelburne $2,595,000 151 Ordway Shore Road : Shelburne $2,600,000 0 0.5 1 1.5 2 2.5 3 The Coldwell Banker Hickok & Boardman Luxury Report is based on data collected the Northern New England Real Estate Network for sales recorded from January 2016 through June 2016 and does not represent privately negotiated transactions unless so noted. All material herein is designed for information purposes only and has been drawn from sources deemed reliable. Though the data is believed to be correct, it is presented subject to omissions, errors, changes or withdrawal without notice. The report is not designed to solicit property already listed. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. All Offi ces Are Independently Owned and Operated. © 2016 Coldwell Banker Hickok & Boardman Realty. Coldwell Banker Hickok & Boardman Realty | Mid Year 2016 Multi-Family Well maintained Triplex in lovely Burlington neighborhood. MLS#4501015 Many updates in this Duplex with three bedrooms on each side. Burlington. MLS#4497413 Multi-Family Averages MEDIAN SALE PRICE: UNITS SOLD: NEWLY LISTED: DAYS ON MARKET: $360,000 (+16.1%) 63 (21.1%) 113 (-9.6%) 79 The multi-family property market in Northwest Vermont continued to show robust trends in the fi rst half of 2016, thanks to the region’s low vacancy rate and growing professional population. The multi-family market is continuing to draw out-of-state, international, and local investors because of these trends, according to our Agents. 150 Northwest Vermont’s Sold, New and Pending Multi-Family Listings, by Number of Units JANUARY-JUNE 2016/2015 125 100 75 50 # OF UNITS 25 +21.1% -9.6% -29.6% 0 2016 2015 2016 2015 2016 2015 63 52 113 125 57 81 SOLD LISTINGS NEW LISTINGS PENDING SALES vermontmarketreport.com Across the four counties, 63 multi-family properties changed hands during Median Multi-Family Sale Price, the fi rst six months of the year, an increase of 21.1%. The median sales Northwest Vermont price rose 16.1% percent to $360,000. As with the residential market, tight JANUARY-JUNE 2016/2015 $400 inventory remains an issue for the market, with demand exceeding supply. Because of these dynamics, well-priced, well-located properties are selling quickly. $350 Inventory remains especially tight in Burlington and Winooski, with the latter experiencing a surge in interest from renters because of its revitalized $300 downtown area, which has brought new restaurants and shops to the former mill town. $250 With demand from buyers remaining far ahead of supply, our Agents note that owners of multi-family properties may want to consider listing to take $200 advantage of the market dynamics. The following are details about trends impacting the multi-family market: $150 Tight Inventory in Winooski and Burlington $100 A lack of inventory continues to be an issue in both Winooski and Burlington. The number of newly listed properties slipped 36% in Winooski and more IN THOUSANDS than 10% in Burlington. $50 +16.1% A Slightly Higher Vacancy Rate The rental market’s vacancy rate stood at 2.1% in Chittenden County in June, 0 2016 2015 according to real estate consultancy Allen & Brooks. That’s signifi cantly higher $360,000 $310,000 than the rates seen in 2010-2014, when it averaged about 1.4%. While rents NORTHWEST VERMONT are stabilizing as a result, that hasn’t impacted demand or pricing for multi- family properties as the region’s vacancy rates are substantially lower than the roughly 4.5% national rate. New Apartment Construction Builders are responding to demand, with more than 600 new apartment units slated to be built this year, according to Allen & Brooks. Although newly constructed units tend to have higher rents than properties in existing properties, the added inventory may stabilize rents across the region. Demand for rental housing is likely to remain strong, partly because median household incomes still haven’t caught up with their 2008 peak. At the same time, single-family homes have appreciated in value, making them more expensive for fi rst-time homebuyers. Younger buyers with student loans may end up in the rental market for more years than older generations because of their loan repayments. Allen & Brooks is also forecasting increasing demand from seniors for rental housing, as many decide to scale down and sell their single-family homes. Coldwell Banker Hickok & Boardman Realty | Mid Year 2016