Varied Trends Shape Stowe Area Real Estate Markets Amidst Limited Inventory and Strong Buyer Demand

The real estate markets in Stowe, Lamoille County, and Waterbury, Vermont, exhibited varied trends in Q2 2023, shaped by factors such as limited inventory and changing buyer preferences.

The Stowe real estate market continued to thrive, fueled by its status as a premier second home destination offering abundant recreational activities. Due to a decline in new listings, the competition among buyers intensified in Q2 of 2023, and appropriately priced properties remained in high demand, leading to a decrease in days on the market.

Single-family homes displayed strength with stable sales volume and significant price appreciation, attracting both primary homeowners and vacation home seekers. Condominium sales also encountered challenges with limited new inventory leading to price growth and indicating sustained demand for a more convenient lifestyle. The land market remained stable, presenting opportunities for buyers, despite decreased sales volume, lower prices, and longer days on the market.

Overall, the Stowe real estate market presents promising prospects for buyers and sellers alike, with a wide range of property options catering to various preferences and lifestyles.

The single-family home market in Lamoille County faced a downturn in sales due to limited inventory. However, the average sales price continued to rise, attracting active buyers looking for well-priced properties. The land market also saw decreased sales, with lower prices and extended days on market suggesting a slower-paced market for land properties.

The Waterbury real estate market demonstrated positive developments in both land sales and single-family homes. For land sales, there was an increase in transactions, and the days on market significantly decreased, indicating growing interest in the land market. However, the decline in average and median land sales prices can be attributed to various market factors and a limited number of land sales in the previous year.

In contrast, the single-family home market in Waterbury faced challenges due to limited inventory. Despite a decrease in the number of sales and new listings, the market remained robust, as evidenced by significant increases in average and median home prices, highlighting the region’s desirability and strong market conditions.

As we move forward, closely monitoring market dynamics in Stowe, Lamoille County, and Waterbury will be crucial to understand how the real estate landscape evolves. Limited inventory, changing buyer preferences, and economic conditions will continue to shape the markets, making it essential for both buyers and sellers to stay informed and adapt their strategies accordingly.

Q2 2023 Stowe VT Real Estate Report

Single-Family Homes

The Stowe, Vermont real estate market demonstrated remarkable resilience and growth during the second quarter of 2023. Despite challenges posed by limited inventory due to a decrease in new listings, the market maintained its appeal to buyers, resulting in a substantial increase in both average and median sold prices. With a significant increase in median sold price and a decrease in days on market, the demand for well-priced properties remained high.

In Q2 2023, the Stowe VT real estate market for single-family homes experienced stable sales volume, with no change from the number of sales recorded in Q2 2022, totaling 17 sales. However, the market showed some interesting trends:

1. New Listings: There was a significant 40% decrease in new listings compared to Q2 2022. This scarcity of new inventory might have contributed to the stability of sales volume as buyers had limited options.
2. Days on Market: Surprisingly, the days on market decreased by 10% from 2022. This suggests that well-priced properties were in high demand and moved quickly off the market.
3. Average Sold Price: The average home sold price in Q2 2023 saw a substantial increase of 20% compared to the same period in 2022. This significant increase indicates sustained demand and appreciation in property values.
4. Median Sold Price: The median sold price experienced an impressive rise of 46% compared to the previous year, reaching $1,210,000. This substantial growth reflects the attractiveness of Stowe as a desirable destination for real estate investments.

In summary, the single-family homes market in Stowe, VT, showed healthy demand despite a decrease in new listings. Prices continued to rise, attracting buyers despite the limited inventory.

Condominiums

Although the prices of Stowe VT condominiums keep rising, the second quarter of 2023 saw a decrease in sales. This is primarily due to a scarcity of new inventory, which has hindered the growth of the market.

1. Number of Sales: The number of condo sales declined by a substantial 47% in Q2 2023 compared to the same period in 2022, with only 17 condos sold.
2. New Condo Listings: New condo listings decreased dramatically by 71% in Q2 2023, indicating a lack of available properties in the market.
3. Days on Market: The average days on market for condos in Q2 2023 increased by a staggering 113% compared to Q2 2022. This suggests that condos took much longer to sell during this period.
4. Average Sold Price: Despite the challenges, the average sales price for condos in Stowe VT increased by 14% in Q2 2023 compared to the previous year.
5. Median Sold Price: The median sold price for condos also saw growth, rising by 36% in Q2 2023 compared to Q2 2022.

Despite the decline in sales and a drastic decrease in new listings, the condo market still experienced price appreciation, making it an interesting market to watch.

Land

The land real estate market in Stowe, Vermont, experienced significant changes in Q2 2023 compared to the same period in 2022. This section provides a comprehensive analysis of key indicators that shaped the land sales market during this timeframe.

1. Number of Sales: In Q2 2023, there were 4 total land sales in Stowe, while there were 7 sales in Q2 2022. This indicates a decrease in land transaction activity between the two quarters.
2. Days on Market (DOM): The average days on market for land properties in Q2 2023 increased to 69 days, compared to only 31 days in 2022. The median days on market also increased significantly, rising to 36 days from 13 days in 2022.
3. Average Sales Price: The average sales price for land properties in Q2 2023 increased remarkably from $437,892 in Q2 2022 to $693,750. This reflects a substantial increase of approximately 58.3%.
4. Median Price: The median sales price for land properties also saw an increase, rising from $415,000 in Q2 2022 to $427,500 in Q2 2023, showing a growth of approximately 3%.

In comparison to the second quarter of 2022, the same period in 2023 showed a decline in the number of land sales. However, the average and median sales prices displayed positive growth, indicating a robust demand for land properties in Stowe. This is also likely due to the lack of available land to buy. 

Market Analysis

The Stowe, Vermont real estate market continued to captivate buyers and investors in Q2 2023. The limited inventory due to a decline in new listings contributed to heightened competition among buyers. However, properties priced appropriately were in high demand, evidenced by the decrease in days on market.

Stowe’s reputation as a premier second home destination, offering a plethora of recreational activities throughout the year, continued to drive demand for vacation homes and investment properties. Additionally, the increasing popularity of remote work arrangements enabled professionals to consider Stowe as an appealing location to combine work with an enhanced lifestyle.

In conclusion, Q2 2023 in the Stowe VT real estate market presented varied trends across different property types. Single-family homes showed strength with stable sales volume and considerable price appreciation. Condos faced challenges with declining sales and a lack of new inventory, yet still experienced price growth. The land market remained stable, presenting opportunities for buyers and investors. It will be crucial to keep a close eye on market dynamics in the upcoming quarters to understand how the real estate landscape evolves in Stowe VT.

Outlook for Q3 2023

The Stowe, Vermont real estate market is anticipated to maintain its positive momentum in the third quarter of 2023. Strong demand, coupled with limited inventory, is likely to influence further price appreciation. Sellers should be mindful of pricing their properties competitively to attract buyers, while buyers should act decisively to secure well-priced homes in the competitive market.

New construction and build packages may provide an interesting option for buyers. As the economic recovery continues, Stowe’s real estate market is positioned to remain a desirable destination for both primary homeowners and investors seeking lucrative opportunities.

Click Here for Detailed Stowe VT Market Stats

Q2 2023 Lamoille County, VT Real Estate Report 

Single-Family Homes

In the second quarter of 2023, there was a noticeable decrease in sales and new listings of single-family homes in Lamoille County, Vermont compared to the same period in 2022. It is likely that the lack of new listings caused the decrease in sales. Despite the decrease in transactions, there were some encouraging developments in average and median sales prices. 

1. Number of Sales: Single-family home sales in Lamoille County were down by 23% in Q2 2023 compared to the same period in 2022, with only 52 homes sold. This decline in sales is indicative of low inventory.
2. New Listings: New listings experienced a decrease of 35% compared to Q2 2022, with only 92 homes listed for sale. The limited inventory posed a challenge for prospective homebuyers.
3. Days on Market (DOM): Surprisingly, the average days on the market decreased by 6% from the previous year, indicating increased buyer activity and demand for well-priced properties.
4. Average Sales Price: Despite the decline in the number of sales, the average sales price for single-family homes in Lamoille County rose by nearly 10% in Q2 2023. The average sales price reached $407,892.
5. Median Price: The median price also experienced a modest increase of 2%, reaching $378,500 for Q2 2023. This growth indicates overall stability in the market.

Land Sales

The land market in Lamoille County, outside of Stowe, saw reduced sales activity in Q2 2023, accompanied by an increase in the average days on the market, indicating a slower pace in land transactions. The decline in both the average and median sales prices suggests adjustments in property values as demand and market conditions evolved during this period.

1. Number of Sales: Land sales in Lamoille County, outside of Stowe, saw 13 transactions in Q2 2023, compared to 16 sales in the same period in 2022, representing a decline in activity.
2. Days on Market (DOM): The average days on market for land sales increased to 158 days in Q2 2023, up from 122 days in 2022, indicating a slower-paced market for land.
3. Average Sales Price: The average sales price for land properties decreased from $160,500 in Q2 2022 to $109,192 in Q2 2023, representing a decline of approximately 32%.
4. Median Price: The median price for land properties also experienced a decrease, falling from $101,000 in 2022 to $98,000 in Q2 2023, indicating a slight decline.

*Note: The average and median sales prices for single-family homes and land in Lamoille County shown above exclude Stowe.

Market Analysis

The single-family home market in Lamoille County faced a downturn in sales likely due to limited inventory. However, the average sales price continued to rise, indicating that well-priced properties attracted active buyers. Despite the decrease in land sales, the market saw lower prices and a longer time on the market, indicating a slower-paced market for land properties.

Outlook for Q3 2023

According to market analysts, the Lamoille County real estate sector is anticipated to encounter some hurdles in the third quarter of 2023. One of the significant challenges that homebuyers may encounter is a shortage of inventory for single-family homes. This scarcity may lead to increased competition for well-priced properties, which can make it more challenging for buyers to secure the home they desire. Additionally, slower land sales may also contribute to the difficulties faced by the real estate market in Lamoille County during this period. These factors may require potential buyers to be more strategic and patient in their search for their dream home. 

Click Here for Detailed Lamoille County VT Market Stats

Q2 2023 Waterbury, Vermont Real Estate Market Report

Single-Family Homes

The Waterbury, Vermont real estate market for single-family homes showed notable changes in Q2 2023 compared to the same period in 2022. Limited inventory played a significant role in influencing sales activity, while an increase in average and median prices demonstrated the market’s resilience despite challenges.

1. Number of Sales: Single-family home sales in Waterbury were down by 11% in Q2 2023 compared to the previous year, with only 8 homes sold. The decrease in sales was primarily driven by the limited inventory available during this period.
2. New Listings: New listings decreased by 5% by the end of Q2 2023, further contributing to the constrained inventory situation, making it challenging for buyers to find suitable properties.
3. Days on Market (DOM): Surprisingly, the average days on market increased by 64% to 41 days in Q2 2023. This rise in DOM can be attributed to overpriced homes that may require additional work, potentially deterring buyers in an already competitive market.
4. Average Home Sales Price: Despite the decrease in sales volume, the average home sales price in Waterbury increased to $600,125 in Q2 2023 from $505,805 in Q2 2022, reflecting a substantial rise of approximately 18.6%.
5. Median Price: The median home price also experienced a notable increase, rising to $465,500 in Q2 2023 from $401,000 in Q2 2022, representing a growth of about 16.1%.

Land

Waterbury, VT, land sales saw notable changes in Q2 2023 compared to the same period in 2022. Despite a limited number of land sales in the previous year, the market displayed improvements in sales volume and days on market, while average and median prices experienced declines.

1. Number of Sales: Land sales in Waterbury increased in Q2 2023, with 3 sales compared to only 1 sale in Q2 2022. The rise in the number of sales indicates a potential increase in demand for land properties.
2. Days on Market (DOM): The average days on market for land properties decreased significantly from 1065 days in Q2 2022 to 77 days in Q2 2023. This substantial reduction suggests improved market activity and quicker transactions.
3. Average Land Sales Price: The average land sales price decreased from $298,000 in Q2 2022 to $277,333 in Q2 2023, representing a decline of approximately 7%.
4. Median Price: The median land price also experienced a decrease, falling from $298,000 in Q2 2022 to $250,000 in Q2 2023, showing a decline of approximately 16%.

Market Analysis

The Waterbury real estate market showcased positive developments in both land sales and single-family homes during Q2 2023. For land sales, there was an increase in the number of transactions, and the days on market significantly decreased, indicating growing interest and activity in the land market. However, the decline in average and median land sales prices can be attributed to various market factors and the limited number of land sales in the previous year, which may have influenced pricing trends.

In contrast, the single-family home market in Waterbury encountered challenges with limited inventory during Q2 2023. The decrease in the number of sales and new listings indicates a competitive landscape for buyers. Nevertheless, despite these constraints, the market remained robust, as evidenced by significant increases in average and median home prices, demonstrating the region’s desirability and strong market conditions.

Outlook for Q3 2023

For the Waterbury real estate market, Q3 2023 is likely to see continued changes and competitive conditions for both land sales and single-family homes. The decrease in days on market for land properties is a positive sign for land sellers and buyers, indicating potentially quicker transactions.

Buyers seeking land properties in Waterbury should be vigilant due to the limited inventory, which may lead to increased competition. On the other hand, for single-family homes, buyers should be prepared for a competitive market, and sellers should carefully consider pricing strategies to attract potential buyers.

The desirability of the Waterbury region is expected to persist, potentially driving continued appreciation in property values for both land and single-family homes.

Click Here for Detailed Waterbury VT Market Stats

 

The trends seen during Q4 2022 have continued into Q1 2023. While the market numbers were very similar to Q1 2022, with only slight differences in sales volume and new listings, the forecast for Q2 is showing a lack of inventory putting downward pressure on sales. Buyer demand remains strong within our market with many buyers ready to move once a property fits their criteria. Given interest rates have been elevated for many months, buyers who are seeking out loans, have mentally factored this into their decision-making process.

Across the region, there was a reduction in inventory, in Lamoille Country there was a 7% dip in new listings compared to last year. In Stowe, it was a more pronounced drop of 18%. Waterbury saw an increase of 10% year over year. Seasonality does play a factor in the reduction of listings this time of year. As we progress into the final half of Q2 there’s an expectation that inventory will grow as sellers look to capitalize on the continued buyer demand.

In our markets, and statewide, there is a sense that a return to a more normal market was due. This means we are seeing a more typical transaction process with contingencies like building, septic, and other inspections being conducted. As we continue to monitor the market, it’s imperative to have the right real estate advisor to help guide you to take advantage of opportunities in a market in transition.

Stowe

Buyer demand helped to keep overall values fairly even in Q1 2023 compared to a year ago, with properties trading on average within 97% of their final list price. That being said there was a decrease in average and median selling prices of 24% and 29% respectively compared to Q1 2022.

The split between homes sold above and below $1M was even, with 6 homes trading below and 6 above. The average sales price of $1.554M was down from $1.932M a year ago. Multiple offers are still a factor on some homes that are properly priced, but there is less overbidding in those situations.

The luxury market in Stowe for Q1 2023 saw a slowing in terms of the number of sales as well as closed prices. There was almost a 50% decline in sales, with the high sale being $3.5M compared to $5.75M a year ago. The average days on market were 68, which was higher than 44 in Q1 2022, median days on market also tracked higher to 40 compared to 5 last year. The average and median sales prices declined year over year, from $2.4M to $2.068M, and $1.850M to $1.842M respectively. This segment of the market continues to be isolated from rate hikes as the majority of these buyers are paying cash.

While the overall market in Stowe remains strong, the declines were predictable as the trend from 2022 continued into 2023. As we progress into 2023 proper pricing will be paramount to a successful transaction in a reasonable amount of time. From a buyer’s perspective market knowledge and how to navigate making the right offer will help in securing the perfect Stowe property. 

The condo market showed continued growth and resilience, bucking the trend set by single-family homes. There was a 50% increase in sales volume, with 24 units sold compared to 16 a year ago. Units sold on average at 98% of their last asking price, with the average and median pricing increasing by 80% and 34% respectively. There was also an increase of inventory by 36% in Q1 2023 and the days on market dropped slightly by 5%. What’s interesting in analyzing the difference between Q1 2023 and Q1 2022, is that in Q1 2022 the majority of the sales were located at the main lodge at Stowe Mt. Resort.  In Q1 2023 the market varied between off Mountain condos, new construction, and stand-alone townhomes located at the resort. Stowe offers a diverse selection of condos, which appeals to the varying requirements of buyers. As we enter Q2, the condo inventory has seen a reduction with only 10 units available, and only three of which are below $1M.

Land had no change year over year in terms of sales volume with two parcels trading each year. There was an increase in average and median sales prices in Q1 2023, but with such a small sample size it’s not reflective of the overall land market. There are currently 10 parcels on the market, ranging from a 2-acre parcel close to the Morristown line for $299K to a 174-acre parcel off Weeks Hill asking $15M. The cost and time to build are creating negative pressure on the land market, but winter is also a time of year when land is the least attractive. The second quarter should bring new options to the market and as we progress into summer it will give us a better understanding of where the land market will end up in 2023. Land can be more challenging for buyers to understand, so it’s imperative to have the right team in place for guidance and marketing.

Lamoille County

As we expand into all of Lamoille County, an area comprising 9 towns, in addition to Stowe, we see similar trends in the reduction of sales volume and new inventory. There was a decrease in overall sales by 31% and listings by 20%. The average and median prices did increase, showing strong buyer demand, compared to Q1 2022, they increased by 19% and 15%, respectively. Homes sold, on average, at 98% of their last asking price. Excluding Stowe, there are currently 22 homes available for sale, ranging from a mobile home for $72K to a 168-acre estate with multiple cabins asking $6.825M.  Morristown, the largest economic driver of this area has a significant inventory shortage with 7 properties available, but only 2 below $500K.

Land sales saw a 50% reduction in overall sales, down to 6 in Q1 2023 compared to 12 a year ago. The average and median prices saw significant declines as well. The average price dropped by over $110K from $189K to $79K and the median price also decreased by $73K, from $140K to $66K year over year. There are 32 parcels available compared to 49 last year; 11 of which are located in Morristown and 9 in Cambridge. The cost of entry in relation to building, contractors, and materials will likely keep overall sales of land in check for 2023, but the cost to acquire land in Lamoille North continues to be far less expensive than Stowe or Waterbury.

*Figures reflected in the report (linked above) show all of Lamoille County including Stowe. The above narrative excludes the Stowe data.

Waterbury

Waterbury saw a burst of activity in Q1 2023 compared to Q1 2022, with 9 homes trading compared to 4 last year. There was a slight increase in inventory of one additional home hitting the market. Given the continued small sample size Waterbury offers, it will be important to keep monitoring the market to have a true read on values. The average sales price jumped by 60% and the median grew by 133%, thus showing how a small sample size can have a big impact on the short-term percentages. What’s most interesting regarding the transactions is that they sold, on average, at 95% of the last asking price. This shows that sellers ended up negotiating more off their last asking price compared to the surrounding markets of Stowe and North. There are 2 active listings available in Waterbury, ranging from $465K to $790K. Buyer demand for Waterbury remains strong as evidenced by the increase in sales in Q1, as we move into Q2 we expect that demand to remain.

Land in Waterbury did see a decrease in sales, with 1 parcel sold in Q1 of 2023, compared to 3 in 2022. There are 3 parcels available on the market, which is not uncommon for this time of year, but they have an average days on market of 150. This is an indication of the overall pullback in relation to building as an alternative to buying an existing home.

Since Waterbury has such a small sample size in single-family and land sales, we will continue to monitor the market to seek further indicators of where 2023 will head. Those with homes and parcels to sell should seriously consider bringing them to market in 2023, as the overall Waterbury market remains in high demand.

In changing markets, it’s paramount to have an expert advisor at your side as you make decisions whether that is when to list or how to structure your offer to be the most competitive. Having access to resources unique to this profession, knowledge, and expertise; agents are equipped to provide their clients with up to the minute market data information, and new listing alerts, helping clients to make informed decisions in an effort to achieve the best outcome. All this along with leading technologies render support and advice that is critical for Sellers and Buyers to have as well.

As our office analyzes the start of 2023 and the direction for the rest of the year, we remain very positive about our area. We know real estate is locally focused, but our global reach provides us with unique insight into how outside factors can be leveraged to a local advantage.  We work hard to identify our own trends and opportunities combined with global reach to best fulfill our clients’ goals.