After a slow start to 2016, the luxury market picked up as warmer weather arrived. During the first 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.
Market Insights
• The median luxury sale price stands at $987,000
• Inventory levels remain deep, providing buyers with choice and negotiating leverage
