Market Snapshot / Year End 2017
Once a month The Kelly Realty Group updates local Market Statistics on our website StoweRealEstateForSale.com with relevant information for buyers and sellers in the 3 county area including Lamoille, Washington and Chittenden Counties with a special focus on the Rt. 100 Corridor and the following towns of Stowe, Waterbury, Morristown, Hyde Park and Elmore. We provide a Quarterly Newsletter with insights concerning the real estate market trends to inform our followers and assist our clients with their purchasing and selling decisions. Our clients benefit from having professional agents armed with the most accurate and up-to-date market statistics to help them navigate the housing market and negotiate the best price and terms for their real estate transactions.
Happy New Year
It would be difficult to recap The 2017 Year in Real Estate without discussing the impact of Vail Resort's recent purchase of the ski operations at The Stowe Mountain Resort. It has not only impacted the Stowe real estate market but has influenced an overflow interest in the neighboring towns. Many ski enthusiast, driven by the low cost and extended benefits that come with Vail's Epic Pass, have scrambled to see how they can take full advantage of their close proximity (Boston, New York, Montreal, etc.) to Stowe and combine that with trips out West to some of Vail's many world class Ski Resorts. Below we will take a deeper dive into the sales results of 2017 and discuss how that compared to 2016 results.Here is a copy of our latest Market Snapshot Report with all the data that we provide on our website
Single Family Home Sales
The sale of Single Family Homes over the past 12 months have increased significantly in Washington County (+14%) and Chittenden County (+6%) and are only slightly down in Lamoille County (-1%). The sale of Stowe Single Family Homes in 2017 are down over 2016 sales (-7%) but have been climbing steadily as the year went on. Lower inventory levels and a shift in the Price Distribution of sales is having a big impact on these results. Notice that inventory levels are down across the board except in the town of Stowe (+17%).
News leaked of the potential purchase of The Stowe Mountain Resort by Vail early in the 1st Quarter of 2017. This resulted in real estate inquires more than doubling in Stowe for the balance of the year. As you can see the sales of Single Family Homes has increased steadily throughout the year.
As the sale of Single Family Homes continued to climb, the number of available homes in Stowe, especially in the "Below $500,000" range, became scarce causing buyers to make offers more quickly on properties resulting in a significant decrease in the Average Days on the Market.
As we discussed in last Quarter's Newsletter, the available inventory for Single Family Homes "Below $500,000" are down. On the other hand the available inventory of "Above $500,000" single family homes are up. The inventory levels and sales of "Above $500,000" properties is likely to continue to rise as owners are starting to see these properties appreciate in value for the first time in a very long period. The increased sale of more expensive properties in Stowe has resulted in a significant increase in the 2017 Median Price over 2016 (+$130,000 in one year).
As you can see there was a significant amount of sales of Single Family Homes in the "Below $400,000" range in 2016 (44 units) leaving very few available properties in the same price range on the market in 2017 (only 23 units). This caused some buyers that might normally be shopping in the "Below $400,000" to stretch and purchase more expensive properties in the $400,000 to $600,000 range in 2017. The lack of Single Family Homes in the "Below $400,000" category also pointed some buyers that could not afford to purchase in the "Above $400,000" range towards purchasing Stowe Condos or towards Single Family Homes in surrounding towns.
It is now rare to find a quality Single Family Home in Stowe for under $250,000. The same is true of the towns of Elmore and Waterbury. Most buyers looking to purchase in this price range have moved a little farther north toward Morristown and Hyde Park where you can get more house and more yard for your money but still be able to work and play in Stowe.
Condo Sales
The sale of Condos is significantly up in Washington County (+44%) driven primarily by a strong increase in sales in the town of Waterbury (+43%). The sale of Condos is also significantly up in Lamoille County (+39%) driven primarily by a strong increase in sales in the town of Stowe (+50%). Chittenden County's sale of Condos is down (-4%) primarily driven by extremely low inventory levels (currently at only 2 months).
The sales graph for the sale of 2017 Stowe Condos is very similar to that of Stowe Single Family Homes with a steady increase in sold units each Quarter resulting in a large increase in 2017 sales over 2016 sales (+50%).
The steady increase in sales greatly impacted the amount of available units, cutting the of months of inventory of Stowe Condos by more than half from 2016 to 2017 (-55%).
There appears to be a significant number of available condos in the "Under $200,000" range. It is very important to understand that 18 of the 20 available units shown in the "Under $200,000" range are Fractional Timeshare units (usually 4 to 6 weeks annually). One other point to consider is that most low cost condos in Stowe also come with a large monthly Home Owners Association fee, sometimes in the $1,000/month range, causing some buyers to consider purchasing Single Family Homes in neighboring towns like Elmore, Morristown, Hyde Park & Waterbury.
If we take a closer look at the Stowe Condo Market where the unit sales are up 50% and the Median Price is down $3,000 per unit we can start to identify some new sales trends. The news of Vail's recent purchase of Stowe Mountain Resort's Ski Operations has generated a lot of interest in purchasing property in Stowe. New buyers that are looking to take advantage of Vail's Epic Pass in other Vail resort locations are interested in purchasing properties that are easy to maintain and/or rent allowing these owners to travel to other Vail resorts while still calling Stowe their home ski resort. The challenge remains that there is very little inventory of Single Family Homes for "Below $500,000" so prospective buyers are considering lower cost solutions like Year-Round Condos (Representing 89% of all 2017 Stowe Condo Sales) or Fractional Timeshare Condos (Representing 11% of all 2017 Stowe Condo Sales). The increase in Stowe Condos sales "Below $500,000" (+24 Units) combined with almost no increase in Stowe Condos "Above $500,000" (+ 1 unit) helps to explain how the Median Price has dropped for Stowe Condos during the last 12 months (-$3,000) while unit sales of Stowe Condos have increased (+50%).
Land SalesThe sale of land only properties is significantly up in Lamoille County (32%) and in Chittenden County(+14%) while the sales in Washington County is flat (0%). Most of the towns in Lamoille Country are also experiencing significant increase in land sales except Hyde Park (-17%).
Inventory Levels are down in all three counties and all towns except Hyde Park. Reduction in inventory levels is likely to drive increases in the Median Price for land properties. It is likely that land sales will continue to increase since there is a lack of inventory in both of Single Family Homes and Condos. The number of inquires for individuals interested in purchasing land in Stowe and surrounding towns has increased significantly in the 2nd half of 2017.
If you own property in the Stowe area and are considering selling anytime in the near future contact The Kelly Realty Group immediately to set up a Free Seller Consultation to discuss how we can take advantage of the market conditions to maximize what you net in your property sale.
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The Kelly Realty Group "Your Trusted Real Estate Consultants"
Pete Kelly Voted "2017 Best Real Estate Agent" by local patrons of the "Stowe Reporter", "Waterbury Record" &
County's "News & Citizen"We are the leading experts on the local real estate market and your best source for representation when you are looking to purchase or sell real estate. We strongly recommend that you utilize our professional real estate team to assist you with all aspects of your real estate transactions and negotiations. We are happy to provide you with a Free Seller or Buyer Consultation to discuss the benefits of working with The Kelly Realty Group.
Call us today and set up a convenient time to discuss how we can help you with your real estate goals.
Looking forward to hearing from you.
Thank You
The Kelly Realty Group
Pete Kelly
Cell: (802) 922-6146
Email: pete@kelly-realty-group.com
Joe Kelly
Cell: (802) 503-2488
Email: joe@kelly-realty-group.com