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2020 – A Year in Review!

The year 2020 started out with great expectations and excitement for the Real Estate Market. The number of sales and pending properties was up for January and February and then COVID-19 and the shutdown derailed everyone’s idea of normal. We are so proud of the way Vermont handled the crisis and how Vermonters all cooperated to hold down the number of infections in our state. In the beginning, we all worked safely and remotely. We spoke with our clients via zoom and used resources for electronic signing. We walked buyers through our 3-D matterport tours. Our listings could be seen and walked through virtually which was a great benefit to our sellers and buyers. When the Governor allowed resumption of showings of properties it was done safely and with extreme caution. Successfully we were able to view homes and sell properties with no increase in the spread of COVID-19. Many buyers still took advantage of viewing homes first with the 3-D matterport tours followed by an in-person visit. We saw out of state buyers using Zoom, and other programs to purchase homes from afar. Just like at the start of this pandemic, our first concern is always a client’s safety. We are still utilizing resources to do much of our business online. We are grateful to be able to meet you for listing appointments and show you homes with the safety precautions we follow daily.

Let’s take a deep dive into the year 2020 and see how it compared to previous years!

One of the biggest challenges the real estate market faced in 2020 was the shortage of inventory! To put it all in perspective, take a look at the image to the left showing the number of single-family homes on the market as of June 1st each year in Chittenden County. Inventory levels have drastically decreased over the last 5 years. The difference between the inventory levels in 2015 (639) and 2020 (191) is 448 homes! That is a decrease of around 70%!

While many buyers faced challenges with the low inventory, they realized that who you hire, matters! Having an experienced Buyer Specialist in your corner to help guide you through today’s market was key in finding their home. We have a whole team of Buyer Specialists ready to help you in 2021! Click Here to meet them!

Another huge takeaway from the 2020 real estate market is the change in average sale price. If you take a look at our average sale price map, here, you will notice that the average sale price for single-family homes in Chittenden County went up in all but one town! The highest average sale price towns in Chittenden County are Charlotte ($738,267)and Shelburne ($736,813). They have some of the most expensive homes and lakefront properties.

We saw great success in the luxury market in 2020. There were 133 single-family homes closed above $700,000 in Chittenden County vs only 83 in 2019. The luxury market saw buyers from all over. If we look at the sales in Charlotte over the last year and the current supply, there is .08 month’s supply in the $1,000,000+ range. The same holds true for Shelburne. If we take the broader lens and look at Chittenden County as a whole, there is 2.67 month’s supply in the $1,000,000+ range.

Let’s take a look at Chittenden County stats for 2020 vs 2019. Our average and median sale prices are up from 2019. While our units sold are down 4.2% from 2019, we were actually above the number closed in 2018 (1316), which has been the best year until 2019. The reason for this good news is found in a few areas. The first is due to the increased demand for homes because buyers are finding they need more from their homes during this stay at home time period or they may need a different layout. The second being many buyers are able to work from home and out of state buyers are choosing to move to Vermont for lifestyle and COVID-19 safety. Finally, mortgage rates continue to be at all-time lows making the dream of owning a home more reachable for more people.

Chittenden County was not the only place to see a jump in average sale price. The average sale price for Addison County was $321,047 which is 7.2% higher than 2019. Franklin County was $260,447 – up 11.6% from 2019. Finally, Grand Isle was $419,753 – up 33% from 2019.

 

When we look at the list to sale price ratio from 2020, there are 5 towns that stand out. Fairfax, Winooski, Milton, Essex and Essex Junction all show list to sale price ratios at 100% or higher. Part of this is because of new construction in the area. However, in most of these towns we saw multiple bid situations throughout 2020 which pushed sales prices up.

As we jump into 2021, we expect to see continued low inventory, the stock market again thriving and buyer demand high. This creates a fueled market that with interest rates still low will carry us well into this year.

Our team learned to pivot in 2020. With the weekly changing travel map, educating buyers and sellers on the current protocols and keeping up with our fast-moving market. The Nancy Jenkins Team was honored to have helped close 217 properties in 2020. We are proud to call Vermont our home. If 2021 is your year for a move, we are here to help you, your family, co-workers, and friends. Contact us, today.