Summary of the 2021 Stowe & Surrounding Areas Real Estate Market
COVID is the best thing that has ever happened to Vermont property values! The continued national recognition as the “brave little state” with high immunization rates, a focus on outdoor pursuits, the well-publicized variety of small businesses, and the promise of owning private greenspace are just a few of the reasons buyers were drawn to Vermont in 2021.
Typically, most buyers come from the East Coast (both points north and south), yet last year we saw higher numbers of buyers coming out of the west as well, seeking to escape the drought, fires, cost-of-living, and even politics.
2021 Market Highlights
2021 was another banner year in our regional market. We saw double-digit increases in value through multiple geographic regions and price bands. Buyers remain active in their pursuit of the Vermont experience, fortified by the favorable interest rates and the continued strength of the financial markets.
Multiple offers were prevalent at the $1 million or less price points, and buyers went to extreme lengths to compete – making offers “site unseen,” foregoing inspections/due diligence, and finding creative ways to bring cash to the table.
Stowe Single Family Homes
Stowe’s single-family market had fewer transactions due to limited inventory, but the average transaction value increased by nearly 18% from $983,498 to $1,154.651. With fewer choices and rising values in Stowe, buyers were open to expanding their search into surrounding towns and communities.
For example, Johnson saw an astounding 98% increase in volume sold, and nearly 50% increase in the average transaction value to $334,000.
The Importance of the Right Realtor
As a buyer or seller, being connected with the right Realtor was more important than ever… Sellers who priced strategically leveraged multiple-offer situations resulting in contracts on their terms, while earning an excellent sale price.
Buyers with experienced, strategic guidance had the advantage in competing with multiple offers, and often had advance notice regarding newly offered property where there was only a matter of hours of opportunity to participate.
Cash is King
This market typically sees approximately 30% cash vs financed transactions. However, the “cash is king” trend dominated the market with approximately 50% cash transactions in 2021. Buyers often worked on financing in the background during their purchase process (not as a contingency) or with a “refi” loan post-closing.
Looking to Next Year
What can we expect for 2022? It seems probable that those who have been protecting their “safe haven” in Vermont over fears related to the pandemic will slowly start to release their grip, as we learn to “live with COVID.”
Last spring (that’s late May in Vermont!) the new listings were limited… This year we are hearing from sellers already, and they are excited about what they can earn for their properties in this continued hot market. Obviously, if there is a flood of property to the market or a change in the national economic picture, the dynamics could change quickly, and we could see pricing level off. However, the area in general has a newly elevated baseline and we anticipate 2022 will be another strong year in the market.