Home sales soar in Stowe, county

The number of housing units sold in Stowe in 2013 hit an eight-year high while median sales prices dropped by 4 percent from 2012, according to a recent report.

Sales have run the gamut.

“We sold everything from the HGTV Dream House down to residences for first-time homebuyers,” said Joni Gaines, owner/partner at New England Landmark Realty, with offices in Stowe and Waterbury. “We’re seeing movement in all areas of the market.”

Eighty-two single-family homes sold, a 10 percent increase from 74 in 2012. The median sale price dropped 4 percent from $387,400 to $373,000.

Fifty-seven percent of the home sales involved prices below $500,000, said McKee Macdonald, a broker with the Smith Macdonald Group of Coldwell Banker Carlson Real Estate in Stowe. That’s about 6 percent lower than in 2012.

The Smith Macdonald Group’s yearly market report was released late last month. The report only includes sales that had closed by the end of December.

Second homes comprised the majority of sales.

Some of the sales were driven by new residents who relocated to the area to take positions with major Vermont companies.

“They’re pulling talent from the Boston and New York areas,” Macdonald said. “Because they’re quality positions, we’ve seen a movement from primary homeowners at a lower price range to primary homeowners in the mid range of $500,000 to $1 million.”

Toby Merk, a realtor with Stowe Red Barn Realty, has had several clients who work in Burlington but want to live in Stowe because of the outdoor recreation opportunities. Several purchased fixer-uppers.

“I though that was interesting and a neat trend,” Merk said. “We hadn’t seen that before.”

Her company has a large rental business and many former renters have decided to take the plunge and buy second homes.

“They want to be able to come and do family things,” Merk said. “They’re impressed by the prices and the amount of land they can get.”

Stowe’s status as a close-knit community with a luxury four-season resort makes it attractive to buyers of all stripes, according to Macdonald.

“When you compare it to other ski towns in New England, it by far outclasses what they’re offering,” Macdonald said.

Ongoing multi-million-dollar upgrades at Stowe Mountain Resort have helped solidify its appeal.

“It’s brought a new, younger generation of buyers to the market,” Macdonald said. “People who were going out West or thinking about buying a place on Martha’s Vineyard are coming to Stowe instead.”

Prices down

On average, houses priced under $500,000 sold for 7 percent below the original asking price, while houses priced between $1 million and $1.5 million sold for 11 percent less.

Homes generally sold for close to the assessed value the town government uses for property-tax purposes, with homes priced at $1 million and above selling higher than their assessed value, on average.

Seventy-four houses sold for below $1 million, up from 66 in 2012. Six sold for between $1 million and $1.5 million, and two sold for more than $1.5 million.

Residential sales were spread pretty evenly throughout Stowe, Macdonald said.

Land, condo sales up

Land sales in Stowe were basically unchanged from 2012, with 20 sales compared to 19.

Eighteen of those sales were for less than $250,000. Median and average sale prices dropped dramatically, with declines of 48 percent and 58 percent respectively.

Meanwhile, inventory decreased by 9 percent; 75 land parcels remain on the market compared to 82 a year ago.

Sales of condominiums increased 3 percent compared to 2012 with 40 units sold. Median prices rose 5 percent, from $262,000 to $275,000.

Most condos sold for less than their town-assessed value, with units under $200,000 taking the biggest hit; on average, they sold for 10 percent below their assessed value.

Sales up across county

Excluding Stowe, sales of residential housing units in the rest of Lamoille County rose 36 percent, with 160 units sold compared to 118 in 2012. The median sales price increased 2 percent, from $189,250 to $193,750.

Sales above $200,000 and sales above $300,000 doubled from 2012 across the county, according to Macdonald.

“Much of this can be contributed to a lack of inventory in surrounding areas like Stowe and Burlington,” Macdonald said.

Land sales in Lamoille County remained unchanged from 2012 with 41 parcels sold.

Trends for 2014

The trend toward brisk real estate sales appears to be continuing into 2014, according to Gaines.

As of Monday, 41 Lamoille County residences were under contract, including 20 in Stowe.

“We’re all a little shocked to see that many properties under contract at this time of year,” Gaines said. “We’re getting a lot of old inventory off our books. It’s really promising.”

Homes priced over $1.5 million are moving slowly, mainly because of high property taxes, she said.

Macdonald expects that lower inventory and an increasing demand, coupled with low interest rates, will lead to tighter home prices than last year.

“It’s not as crazy as the boom days, but the lower price point is really tightening up again,” MacDonald said. “It’s dangerously close to making it unaffordable to get into Stowe as a first-time homebuyer.”

Most buyers want newly renovated, energy-efficient homes with open floor plans, Macdonald said.

Buyers, especially primary homebuyers with smaller budgets, are more willing to consider outdated properties with an eye for renovations that could be done over time.

“It’s still cheaper to buy a home and renovate than to buy land and build new,” Macdonald said.

Second-home owners tend to be drawn to log cabins and other rustic looking homes.

“Particularly, they want that country feel,” Merk said. “They’re looking for something different than what they have in the city. It boils down to the Vermont dream.”