The Vermont real estate market remains cool. The number of transactions is still down, as is the median sale price of R1’s. The lower median sale price is likely the result of the first time buyer’s credit of $8,000 that was offered this year. The influx of first-time buyers resulted in properties at the lower end of the market selling at a higher rate than high-end properties.
R1 Median Price
The following graph illustrates the leveling off of prices for owner-occupied residential property. These are not necessarily R1 properties (determination of owner-occupied residential property is made from statements made on the property transfer tax returns), but show a similar drop in the sale prices in the latest property transfer tax return filings.
Owner-Occupied Residential Sales
2006 2007 2008 2009 Each Symbol Represents Median Price in Month
The second home/condo market was more heated than other sectors in 2005 thru 2007 and there is evidence of a further cooling this year. The median sale price in both S1 and condo properties are down this year. As with the R1’s properties, however, it may be the lower end properties that are selling thereby bringing the median sale price down.
Property values did rise over the past year, but the growth varied significantly across the State. Based on the estimates from this year’s study, Orleans County saw the highest rate of increase in value, followed by Grand Isle County. Windham County saw the smallest increase again this year. The table below details the change in equalized value by county. Note that the increases include not only appreciation but also the value of new construction.