The Bateman Group Realtors 2017 Year End
Real Estate Report
The Market in a Nutshell
In a year of political transition and a record-breaking stock market, 2017 can only be characterized as ‘energetic’, which continued to bolster our strong and healthy market, as evidenced by increased activity across-the-board. Perhaps more importantly, demand in some price ranges is outpacing supply – most notably in single-family and condominiums in Stowe, valued $500,000 and below. As you read on, you will find the comparisons between three regional data sets, comparing the number of units sold, total dollar volume those sold units represent, and the average sale prices.
However, the entire story is not reflected in the numbers. Since Vail’s May 2017 announcement of their purchase of Stowe Mountain Resort, there was a palpable increase in activity, with un-precedented numbers of inquiries and property showings. While this did not produce ‘record numbers in 2017’ it is certainly reflected in a sense of urgency we have not experienced in years, and the result was a notable reduction in the days-on-market.
As a result, Sellers will likely start coming out of the woodwork as they sense the potential for profit, and Buyers who are watching the market may start to come forward, especially if they have enjoyed their first experience in Stowe with their Epic Pass; or, at the very least, speak favorably about Stowe and the surrounding areas with a sense of excitement and positivity to their family, friends and neighbors… As long as there continues to be a strong financial market and affordable interest rates, we anticipate an upbeat 2018.
Single Family Homes Analysis
Stowe: Although the number of homes sold was down slightly (4.4%) the average sale price rose ($639,000 in 2016 vs $662,591 in 2017). However, the real story is the two extreme ends of the market – although we had a 22% decrease in the number of sales below $500,000, there was a whopping 18% increase in their average value – a clear indicator that supply in this segment of the market is out-pacing demand; if inventory remains low, we are likely to see continued value growth in this range. And the high end of the market also shifted… There were nearly double the transactions in the junior-lux segment between $1,000,000 and $1,500,000 (9 in 2017 vs 4 in 2016), yet there were only 2 sales above $2,000,000 versus 4 sales above $2,000,000 in 2016. This does not include the on-mountain ‘developer’ sales at Spruce Peak.
Morristown: The resurgence of this market continues, with on-going growth in the single-family home market showing a 9% increase in homes sold versus 2016, consistent with the growth and development seen in this community over the past 4 years… Both the number of units sold and the average sale price increased 10% over 2016, demonstrating an advancing market as Morristown develops its new identity and micro-economy, and offer a wide variety of property values and styles for buyers to choose from.
Waterbury: The single-family home market remains strong in Waterbury with 7% growth in units sold over 2016. Again however, the market of $500,000 and below dominated the activity, representing 86% of those sales… Not surprisingly, the side-effect of this activity is a lack of inventory in this market (21% less than 2016) and a direct impact on the Waterbury vacant land market – buyers opted to build if they could not find what suited them in an existing structure.
Stowe: The two main drivers of the 2017 condominium market in Stowe are the accelerated interest in Stowe Mountain Resort and the EPIC pass, driving skiers and riders throughout the Northeast to come to Stowe, and the challenging lack of inventory of affordable single-family homes. As a result, condominium market exploded with a 51% increase in units sold over 2016. As we saw with the single-family home sales in Stowe, the majority of the condominium sales were in the lower end of the value range – $300,000 and below.
Land Market Analysis
Stowe: Due to diminishing inventory of existing homes and condos, the Stowe land market benefited and saw a huge 28% increase in the number of land parcels sold in 2017 vs 2016. Pricing is steady, but the asking prices for the remaining ‘good land’ are significant, and Sellers are holding out for their number. The sales prices for vacant land at Spruce Peak continue to set records – extrapolating as high as $2,000,000 per acre… but the ski in / ski out aspect drives these values, and so they are unfortunately not relevant to our off-mountain market.
Morristown: The Morristown land market saw a 23% increase over 2016 with 16 sales versus 13 in 2016; however land in Morristown is moving in the lower price points – 80% of 2017’s sales were valued below $80,000.
Waterbury: Waterbury’s land market is perhaps the biggest story of the real-estate year! We saw unbelievable growth with a 433% increase in land units sold over 2016 and a 265% increase in the average sale price! This is a clear result of low residential inventory, but also an interesting heightened interest in people relocating to Waterbury from other areas of Vermont, enjoying the proximate access to Interstate 89, eclectic restaurants and shops, and the general sense of renewed village vibrancy.
In Other Related News…
The Bateman Group is Making a Splash
2018 Morrisville Rotary Polar Splash on Lake Elmore
The Bateman Group at Pall Spera Company Realtors are proud to have team members Grant Wieler and Andrew Gillespie represent them at the 2018 Polar Plunge on Lake Elmore.
With Elmore’s average temperature in February being 22 degrees, we feel confident that this dynamic duo has the grit and determination to brave what can only be described as a harsh and inhospitable environment and take a dip in the lake for a good cause.
This year the proceeds from the fundraising will go to the North Central Vermont Recovery Center.
NCVRC Mission Statement: “Our vision is to enrich the social lives of individuals, families, and communities who have been affected by addiction. Our assistance is provided to all citizens regardless of age, race, gender, religion, or sexual orientation.”
Help us support this great community resource!
The Bateman Group is Growing!
The Bateman Group added two team members in 2017
Susan O’Rourke was a consistent top producing Realtor® in Central and Northern Vermont. Susan joined the team in mid-February of 2017 and will be working closely with Sharon in an administrative capacity. With 17+ years of experience under her belt, Susan “knows the ropes” and we are confident that her experience will be a great compliment to Sharon Bateman’s practice and our real estate team!
Caroline Marhefka was born and raised just outside Montreal into a french-speaking household, and originally came to Vermont to pursue her passion for skiing at Burke Mountain Academy. After following a career in marketing, she returned back to her roots in Vermont with her family; where she discovered that her marketing expertise, fundamental love for the Green Mountains and passion for skiing is complementary to a career in real estate.
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According to the 2017 United Van Lines National Movers Study, Vermont had the highest percentage of inbound migration in 2017 with nearly 68 percent of moves to and from the state being inbound.
*This publication is meant for informational purposes only, and not as a solicitation. This information is deemed reliable but not guarunteed. The data relating to real estate displayed on this site comes in part from the IDX program of NEREN.
Copyright © 2018, The Bateman Group at Pall Spera Company Realtors
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