2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS^® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.

New Listings decreased 26.7 percent for single-family homes and 29.4 percent for townhouse-condo properties. Pending Sales decreased 13.4 percent for single-family homes and 40.5 percent for townhouse-condo properties. Inventory decreased 5.4 percent for single-family homes and 22.2 percent for townhouse-condo properties.

The Median Sales Price was down 3.4 percent to $386,250 for single-family homes but increased 12.9 percent to $355,550 for townhouse-condo properties. Days on Market decreased 23.7 percent for single-family homes and 45.7 percent for townhouse-condo properties. Months Supply of Inventory increased 20.0 percent for single-family homes but increased 16.7 percent for townhouse-condo properties.

Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.

Considering a move and wondering what your options are this spring? We're here to help. Contact us today.

This month's featured hidden home is located down a tree-lined driveway in South Hero, Vermont. Here you will find this completely private retreat nestled in the woods.  The unique "treehouse" designed home is set on 10.1 acres and includes walking trails all just steps from the west shore views.

Watch to see the interior and subscribe to our YouTube Channel to see more Hidden Vermont Homes!

Regular home maintenance is essential for keeping your home in good condition and preventing costly repairs. March is an ideal time to tackle critical maintenance tasks as the Vermont winter weather recurs and warmer weather is just around the corner. By taking care of crucial maintenance tasks early, you can ensure that your Vermont home is in top shape and ready to face the elements in the coming seasons. 

Read the full march home maintenance guide here. 

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The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.

New Listings increased 9.1 percent for single-family homes but remained flat for townhouse-condo properties. Pending Sales decreased 7.8 percent for singlefamily homes and 19.4 percent for townhouse-condo properties. Inventory increased 1.8 percent for single-family homes but decreased 3.4 percent for townhouse-condo properties. The Median Sales Price was up 6.3 percent to $420,000 for single-family homes and 31.3 percent to $362,000 for townhouse-condo properties. Days on Market decreased 10.5 percent for single-family homes but remained flat for townhouse-condo properties. Months Supply of Inventory increased 22.2 percent for detached homes but remained flat for townhouse-condo properties.

As sales slow, time on market is increasing, with the average home spending 26 days on market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.

Considering a move and wondering what your options are in this market? We're here to help. Contact us today.

Please join us in congratulating 2022 Coldwell Banker Award Winners, Franz Rosenberger, and Evan Potvin! These agents are ranked among the top sales professionals in the Coldwell Banker global network. Franz and Evan are true trailblazers who go above and beyond for their clients. We’re honored to have them as leaders of our team. Congratulations on these outstanding achievements; we wish you continued success in 2023.

Franz Rosenberger received the 2022 International President’s Elite Award, representing the top 2% of Coldwell Banker agents globally.

Evan Potvin received the 2022 International President’s Circle Award, representing the top 5% of Coldwell Banker agents globally.