Real estate sales in the Mad River Valley towns of Warren, Waitsfield, Fayston, Moretown and Duxbury have been on an upward trend since 2015 and that trend continued in 2019. According to the New England Real Estate Network, the local Multiple Listing Service, the combined sales volume of residential homes and condominiums totaled $71M, an increase of 37 percent or $19M over the 2018 volume level.
Single-family residences accounted for a larger share of the increase with a total of $46.3M in sales, up nearly $14M, an increase of 42 percent over 2018. Total condominium sales were up $5.5M to $25M, an increase of 28 percent over 2018. The total number of residential transactions has trended higher as well with 115 condominium sales and 114 homes sold in 2019, both were up just over 20 percent from 2018 levels.
The average sale price of a home sold in The Valley in 2019 rose nearly 35 percent to $406,347 over the average sale price of $301,000 in 2018. Condominium sales averaged $217,419, a 5 percent increase over 2018’s average price of $207,255. It’s important to note the substantial increase in the average home sale price can be somewhat attributed to an increase in the number of homes sold last year in The Valley that were priced above $600K compared to the number sold in 2018.
There were three sales above $1M, including one at $2.2M, and 12 sales between $600K and $1M. In 2018 there were 10 homes sales from $600K-$1M and none over $1M. In 2019 there were nine condo sales between $500K and $1M including five of the new Gadd Brook units.
KEY FACTORS
As with most markets, supply and demand are key factors in the local real estate market. As of this writing there are 46 condominiums listed for sale in the Mad River Valley, 15 of those are fractional ownership units at Clay Brook and seven of the remaining 31 units are priced above $600K. Effectively, there are two dozen units for sale under $500K in The Valley which is about a three-month supply.
There are 58 houses currently on the market. Only four are priced under $200K and 23 are priced over $600K, including four over $1M, four are priced from $500K-$599K, 11 homes are priced between $400K-$499K and there are 17 homes priced between $200K and $399K. These numbers equate to a three- to eight-month supply for all but the most expensive homes and condos.
As a property owner the picture is clear, low inventory and higher demand have created a seller’s market and pushed prices higher. If you’ve been thinking about selling, this is the best market for sellers in more than a decade.
What’s the outlook moving forward? It’s impossible to know for sure, according to Freddie Mac's chief economist who said: "The drop in mortgage rates, combined with the strong labor market, should propel a continued rise in buyer demand." For buyers, the best advice is, be ready to move by being pre-qualified for your financing and keep a close eye on the market. It’s not unusual for properly priced properties to go under contract within days of hitting the market and to have multiple offers. Working with a knowledgeable local Realtor is your best opportunity to stay in-touch with a fast-moving market and find the property that’s right for you.
