The luxury market tends to slow down during the first quarter, and this year proved no exception. Because many of Northwest Vermont’s luxury properties are located on Lake Champlain, buyers often wait to begin their search until the late spring or summer months.
Still, the luxury market witnessed a strong 2015, when the number of transactions for homes priced above $800,000 increased by 25%.
The luxury segment continues to be a buyer’s market, with some high-end homes requiring years before they find a buyer. Some sellers have also had to lower their price expectations given the market dynamics, which include a three-year inventory of homes listed for more than $800,000.
This is providing excellent choices for high-end buyers, ranging from waterfront estates, to neighborhood or city properties and mountain homes with large amounts of acreage and amenities, as well as the opportunity to negotiate a good price.
Inventory Concerns
Some prospective buyers are cautious about committing to property given the three-year inventory level. That’s especially true among executives who are relocating and may not remain in Vermont for more than two or three years.
Waterfront Properties
Last year saw a shift away from waterfront homes as buyers sought properties closer to Burlington and its vibrant cultural life. Still, two of the first quarter’s luxury sales were waterfront estates, signalling that buyers remain interested in such properties.
Prepare for the Summer
Since there’s so much competition in the over-$800,000 segment, sellers should prepare their homes for summer showings by making sure they are in excellent condition. That means attending to deferred maintenance, and landscaping.
Market Insights
• Two of the first quarter’s luxury sales are waterfront estates.
• Winter tends to be a slower time for the luxury marketplace.
