The Vermont real estate market has seen significant shifts in recent years, leading many potential buyers to wonder: Is buying real estate in Vermont still a good investment? While home values have risen, there are still strong reasons to consider purchasing property in the Green Mountain State. Let's explore the trends, market conditions, and future outlook to determine whether buying in Vermont is worth it.
Real Estate Market Update Vermont January 2025: How Does Vermont Compare to National Trends?
Understanding Vermont’s real estate market requires a look at broader trends. The National Association of Realtors (NAR) provides valuable insights into national and local housing data.
Median Sales Price
Nationally, home prices have steadily increased, with 2021 marking a peak in price surges. Vermont has followed a similar trajectory but with sharper increases in value between 2020 and 2022.
Vermont’s median home price: Just over $408,000, slightly below the national median of $429,000.
Chittenden County: Outpacing state and national trends with a median price of $469,000.
Over the past eight years, Vermont and Chittenden County home prices have increased by 65%, with the largest jumps occurring from 2020 to 2022.
Home Sale Inventory & Supply
National vs. Vermont Trends
Nationally, home sales are expected to increase gradually but remain below pre-pandemic levels due to affordability challenges. The national market experienced a steeper decline and recovery, while Vermont’s inventory trends have been more stable.
Chittenden County’s Inventory Crunch
In Chittenden County, inventory remains critically low, creating competitive pricing and multiple-offer situations in desirable areas. Vermont’s slow development pace, zoning restrictions, and limited new construction contribute to a housing shortage, making it more challenging for buyers to find homes compared to larger national markets where homebuilders are increasing supply.
How Fast Are Homes Selling in Vermont?
One of the biggest concerns for buyers is competition. Will you be facing multiple offers as seen in 2020-2022? The short answer: not always, but some homes still attract multiple bidders.
Average days on market in Vermont: 24 days
Chittenden County homes: 15 days on average
While competition has eased slightly, desirable homes still move quickly, so buyers should be prepared to act fast.
Mortgage Rates & Their Impact on Affordability
Mortgage rates play a crucial role in affordability. According to Keeping Current Matters, economic experts predict that for 2025, national mortgage rates will range between 6% and 7%.
Higher borrowing costs continue to impact buyer affordability.
Vermont buyers are adapting, with demand remaining high despite elevated rates.
If mortgage rates drop, we could see more buyers re-enter the market, increasing competition once again.
Will Home Values Continue to Rise?
Future Predictions
The National Association of Realtors (NAR) projects home prices to increase 17% by 2029, with steady annual appreciation just above inflation levels.
Chittenden County Growth Outlook
In Chittenden County,Vermont, continued low inventory and strong demand mean property values are expected to rise at a steady pace.
2024 Prediction: A 5% increase in home prices.
2025 and beyond: A 4% annual increase, totaling an estimated 21% increase by 2029.
This would bring Chittenden County’s median home price to approximately $495,000 in the next five years.
Is Vermont Real Estate Worth It? Final Insights
Key Takeaways
Competitive Market & High Demand – Low inventory means buyers should be prepared for competition.
Stable Growth & Investment Potential – Home values continue to rise, making real estate a strong long-term investment.
Buying vs. Renting – With Vermont rents remaining high, purchasing a home could be a more cost-effective option over time.
Questions? Contact Julie Danaher at Catalyst Realty Collaborative for Vermont real estate inquiries.
For those considering purchasing real estate in Vermont, the market remains strong, competitive, and full of opportunities. Whether you’re a first-time homebuyer or looking to invest, Vermont’s steady price appreciation and limited housing supply make it a worthwhile consideration.
If you have specific questions about buying a home in Chittenden, Franklin, Washington, Lamoille, Grand Isle, or Addison counties, feel free to reach out—I’d be happy to help! Thanks for reading my Vermont Real Estate Market Update!
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