Comparing First Quarter of 2024 to 2023
When evaluating the market, I look at single family homes and condos together and compare the number of homes sold, median sales price, percentage of the asking price sellers received, and median days on market until a contract was signed. The statistics of one quarter are a far more relevant indicator of the market than comparing one month, year-over-year.
The first quarter of 2024 saw increases in all areas of Chittenden County and in most areas in Franklin County.
In the first quarter of 2024 in Chittenden County, 254 homes were sold compared to 237 in 2023 for an increase of 7%. The median sales price increased by 3.7% in 2024 from $435,000 in 2023 to $451,000 in 2024. Sellers received 101.02% of their asking price in 2024 compared to 100.54% in 2023 – this indicates competing offers drove prices over asking. The median days on market were relatively the same, 10 in 2024 and 8 in 2023.
As an interesting comparison, I looked at Q1 in 2021. COVID had started to settle down a bit and the market was opening up more. I saw that 315 homes sold compared to 254 this year, an increase of approximately 25%. The median sales price was $358,000 for an increase of 26% in 2024. And the interest rates were in the 3% range. I have buyers telling me they wished they had jumped on a house in 2021.
In Franklin County, we saw similar increases. 94 homes sold in 2024 compared to 75 in 2023 for a substantial increase of 25%. The median sales price increased from $319,000 in 2023 to $329,450 in 2024 for an increase of 3.3%. One area in which 2024 saw a decrease over 2023 was the amount over asking seller received, 99% of their asking price in 2024 compared to 100.09% in 2023. However, that can be attributed to sellers pricing their homes in 2024 just a little higher than the market indicated. In 2024, the median days on market was 22 compared to 16 in 2023.
In addition to sharing statistics, I think it’s important to weigh in on the class action settlement you likely have seen in the news. The National Association of Realtors settled, as did several franchise companies. Final court approval is not expected until July so nothing has changed yet. One misconception that arose is that commissions paid to agencies have been fixed. Anti-trust laws have always stated that commissions are negotiable. However, sellers were required to offer some compensation to agents representing buyers if their homes were listed in the Multiple Listing Service (MLS). And while some may contend the policy inflated prices, the main driver of pricing has always been and will always be the law of supply and demand. Vermont has had low inventory for years and market appreciated because of that.
With this settlement, there will not be a requirement of buyer agent compensation from sellers. If a seller chooses to offer compensation – and we feel many will - that compensation cannot be advertised in the MLS. Written service agreements will be required and how agents are paid and how much compensation they are paid will be clearly outlined. Vermont always required these disclosures.
There has been observation that these changes may cause housing prices to drop. I feel that will not happen. If sellers choose not to offer compensation to a buyer’s agent, that means they may keep more money at closing. I do not predict a seller will choose to drop their price because they are not paying a buyer agent commission.
We sincerely invite you to have a conversation about this proposed settlement with any of us at The Malley Group to discuss what this means to you and to the real estate market in general.
Here is an interesting video of an interview with Barbara Corcoran of the Corcoran Group. She is a well-respected broker and has weighed in on several news shows: CLICK HERE TO WATCH
In addition, here is a very good article to read: CLICK HERE
