Comparing July 2021 to July 2022 | 8/12/22

We look at single family homes and condos together and gather statistics in Chittenden and Franklin counties from the Multiple Listing Service (MLS). Grand Isle County had too few sales in one month to be able to make any statements about the market. We consider number of homes sold, average increase or decrease in sales price, percentage of list price sellers received, and average days on market until the seller accepted an offer.

In July of 2022 in Chittenden County, there were 160 properties sold compared to 236 in 2021 for a decrease of 32% year-over-year in properties sold. The average sales price rose from $469,620 in 2021 to $519,038 in 2022 for an increase of 10.5%. These are both extraordinary numbers for a one-month comparison. The percentage over asking that sellers received was 103.44% in 2021 and 105.78% in 2022. This means on average sellers received 2.34% more than their asking price in 2022 compared to 2021, and the average sales price was up significantly, yielding sellers even more money in their pockets than if they sold the year before. The number of days on market was almost entirely the same – 15 days in 2021 and 14 days in 2022. Not many!

And here's a big reason why the market is so strong for sellers in Chittenden County - In July of 2021 there were 274 single family and condo listings for sale and in July of 2022, there were only 170! That's a reduction of 38% year-over-year.

In Franklin County there were 78 properties sold in 2021 compared to 43 in 2022 for a drop of 45% in number of homes sold. This is an extraordinary number and bound to have an impact on the Franklin County market if this trend continues. The average sales price rose slightly from $349,758 in 2021 to $358,780 for a little over 2% increase. In 2021, Sellers received 102.04% over their asking price and in 2022 they received 103.65%, a difference of 1.61%. Of significance was the decrease in days on market year-over-year. In 2021 the average days on market was 36 and in 2022, 18, exactly half the number of days.

What does all this mean? First, we can’t take one month and multiply by 12 and state that the market is increasing 126% per year in Chittenden County or 24% in the case of Franklin County. July is typically a strong month in real estate because after the typical length of time it takes to close a property, parents have time to enroll their children in a new school.

We can speculate that one reason for the rise in average sales price in Chittenden County is because of the decrease in homes sold. And the decrease in numbers sold is due to the decrease in listings mentioned earlier. When you have a 38% decrease in available homes for sale, demand rises and so do prices. Simple law of supply and demand. There was an increase in average sales price in Franklin County too but that was dwarfed by the increase in Chittenden County.

We are starting to see sellers lower their list prices in Franklin County after several days on the market and no offer. If this trend continues, it is very important that sellers look carefully at their list price and do not list too high. A strong agent will prepare a market analysis and that includes looking at recent trends.

The interest rate increase has wreaked havoc in some markets. In Franklin County, there are many moderately priced homes that are more affordable than in Chittenden County. However, interest rates increased drastically, and many buyers are now priced out of the market. And add gas prices to the situation and some people are not willing to live in Franklin County and commute to Burlington as they have in the past.

Will we continue to see rising prices in Chittenden County? I predict we will for a little longer if interest rates do not take another big hike in the near future. A recent home received 28 offers, pushing up the price of the home. The supply is still low and demand is high in certain price ranges. It is still a great time to sell as long as the list price keeps up with the market.