I get why there is a strong desire to live in the Burlington area, I grew up here!! Whether you are looking to relocate or are already a local, the key to your journey is understanding the market and hiring a professional to guide you. Like any real estate market, the Burlington area experiences fluctuations that can impact home pricing and availability. In this blog, we'll dive into the key factors influencing the best time to buy real estate in the Burlington area to help you feel confident as you approach your goal.
One of the best times to buy real estate in Burlington area is July into August! Why you might ask…
A. People are focused on other things: Vermonters go to Maine! Yes, me included (but don't worry I have a team for coverage) Families are also preparing for back to school.
B. Historically the most heavy months of real estate are June/July so you may find listings that are still sitting on the market taking price drops, less competition, and in general more inventory to choose from. * Note- we are currently experiencing very low inventory so in certain towns, price ranges this concept may not apply.*
Other times of year to focus your search can include winter, especially around the holidays Other buyers may be busy and sellers might be more motivated to negotiate on price and terms during this time as they don’t like to hold a home through the winter, giving you an opportunity to find a better deal and or avoid competition.
Keeping an eye on the local real estate market conditions is vital. Observe trends such as inventory levels, median home prices, and average days on the market. Here’s some insights…..
Since I’ve been in real estate/ fall of 2016 until now, months of supply of inventory has been below the threshold. They say a balanced market is 6 months of supply. We were around 4 going into 2020, then dipped to 2 and have been closer to 1 month for the last 1.5 years.
Days on market trends:
We have continued to see over 50% of inventory sell within 1 week or less, with the median being under 10 days for several years. Homes that stay on the market longer typically are also pending w/in 2 wks-1 month.
Median home prices:
Here is a map for VT median sales price as of June 2023. The graph shows record breaking increases of between 12-20% over the previous year median sales price. So far YTD 2023 in Chittenden county we are averaging around 3% which shows pricing is stabilizing.
Mortgage interest rates play a significant role in the affordability of real estate. When interest rates are low, like we saw in 2020-2021 record breaking lows of rates in the 3’s, it did as it was intended to do, boost the economy and buyers were buying! Then when interest rates doubled in 2022, we quickly saw the market react and home prices and pendings slowed. Sellers are now holding onto homes longer due to interest rates locked in.
Personal Financial Situation:
Ultimately, the best time to buy real estate in the Burlington area depends on your personal financial situation and long-term goals. I believe putting your goals above all else matters. If you need more space for your family, that should override a higher interest rate. If you just took a new job and your commute will be 1 hour each way, a place within better proximity would improve your quality of living.
Assess your needs, wants, desires FIRST. Then your financial readiness, including credit score, down payment, and job stability, to ensure you can comfortably afford the investment.
Timing is an essential factor when purchasing real estate in the Burlington area of Vermont. While there is no one-size-fits-all answer to the best time to buy, understanding the local market conditions, seasonal patterns, and economic factors can help you make a more confident decision. We can help!
Would you like to stay up to date on the trends of the market in your area?