By Michael Bielawski
Vermont has the fastest rising home prices in the nation according to a new report by the U.S. Federal Housing Finance Agency. That’s already amid a nationwide trend seeing the fastest rate of growth since 2012.
“U.S. house prices rose 6.6 percent between the first quarter of 2023 and the first quarter of 2024, according to the Federal Housing Finance Agency (FHFA) House Price Index (FHFA HPI®),” the report states.
Most recently this trend is only continuing. The report states that,” House prices were up 1.1 percent compared to the fourth quarter of 2023. FHFA’s seasonally adjusted monthly index for March was up 0.1 percent from February.”
It notes that the Green Mountain State is at the top of the list. It states, “House prices rose in 50 states between the first quarter of 2023 and the first quarter of 2024. The five states with the highest annual appreciation were 1) Vermont, 12.8 percent; 2) New Jersey, 11.6 percent; 3) New York, 10.9 percent; 4) Delaware, 10.7 percent; and 5) Wisconsin, 9.9 percent. District of Columbia had a decline of -1.5 percent.”
Dr. Anju Vajja, the Deputy Director for FHFA’s Division of Research and Statistics, notes that for six quarters now the low availability of homes has contributed to rising prices. She further noted these high prices occurred “despite mortgage rates that hovered around 7 percent.”
According to a recent WCAX report, in Vermont prices are rising and sales are falling. It states, “The median sales price of primary homes sold in Vermont last year reached $325,000, increasing by 5% over 2022, according to the Vermont Housing Finance Agency. That comes as the number of annual sales continues to decrease.”
According to U.S. News & World Report, while interest rates for a 30-year mortgage have been at around 7% in the past as they are currently, for much of the previous decade such was not the case.
“However, it’s still true that rates are high by modern standards, since the typical rate observed over the past decade is under 4%,” the report states.
Other data includes that the West South-Central Division of states, which is considered Arkansas, Louisiana, Oklahoma, and Texas, fared better than most of the nation in keeping their housing markets affordable. Vajja further states that the market “shows some signs of softening” when looking at overall national trends.
Zillow, the popular real-estate website, highlights some concerning trends regarding the average home price in Vermont.
“The average Vermont home value is $392,682, up 4.7% over the past year and goes to pending in around 9 days,” they state.
They offer some other statistics including the average home listing price in the state is $449,667 but the average sale price in the state is $315,917. Overall home values are up 4.7% over the previous year. Nearly one in three or 30.3% of home buyers pay more than the listed price, and 54.3% of buyers end up paying under the listed price.
Upgraded Home also has data on Vermont trends. Their report states, “Median home values are below the national average in Vermont, but monthly housing costs are well above average. The median home value in Vermont is $223,700, and residents spend an average of $1,594 per month in ownership costs. You can build a house in Vermont for $148 per square foot, or you can opt to rent an apartment for $972 per month.”
The report continues with how Vermonters on average pay more.
“The homeownership rate is higher in Vermont than the national average, but property taxes are quite high. Your typical Vermont resident spends $4,040 each year in property taxes, and the property tax rate averages 1.83%,” it states.
The author is a writer for the Vermont Daily Chronicle
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