After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs. The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.

New Listings decreased 6.7 percent for single-family homes but increased 17.9 percent for townhouse-condo properties. Pending Sales remained flat for single-family properties but increased 20.8 percent for townhouse-condo properties. Inventory decreased 35.8 percent for single-family homes and 28.3 percent for townhouse-condo properties. The Median Sales Price was up 15.8 percent to $439,950 for single-family homes and 26.7 percent to $332,500 for townhouse-condo properties. Days on Market decreased 29.0 percent for single-family homes and 50.0 percent for townhouse-condo properties. Months Supply of Inventory decreased 28.6 percent for single-family homes and 25.0 percent for townhouse-condo properties.

The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace. As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next 5 years.

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We are pleased to announce the release of our latest video series, Living In Vermont, that highlights life in the Lake Champlain Islands. Our in-house marketing team created these videos to educate viewers about the five Island towns and Grand Isle County. They showcase wonderful elements that give you an inside look at what life looks like living along Lake Champlain. Like, Subscribe and share these videos with anyone looking to move to the islands!

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June’s featured home is an idyllic Isle La Motte Island Farmhouse hidden in plain site with vintage trim and wrap-around porch surrounded by gracious maple trees, perennials on 2.5 acres. Outside the property has a large barn and new chicken coop. Relax and enjoy contemplative moments while walking the 60 feet diameter stone labyrinth.

The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.

New Listings decreased 27.2 percent for single-family homes but remained flat for townhouse-condo properties. Pending Sales decreased 19.7 percent for single-family homes but increased 34.4 percent for townhouse-condo properties. Inventory decreased 40.7 percent for single-family homes and 48.6 percent for townhouse-condo properties.

The Median Sales Price was up 21.8 percent to $432,250 for single-family homes and 26.4 percent to $350,000 for townhouse-condo properties. Days on Market decreased 41.7 percent for single-family homes and 48.9 percent for townhouse-condo properties. Months Supply of Inventory decreased 30.8 percent for single-family homes and 45.5 percent for townhouse-condo properties.Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat.

Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS^®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.

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Does your Vermont home need some sprucing up? With over 25 years of experience in Vermont real estate, we know what projects will help make your home more functional and have the best return on investment. Save time, money and improve the value of your home with absolutely no cost or obligation.

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The agents at Coldwell Banker Islands Realty have the experience and knowledge to help you make informed decisions when it comes to your next home improvement project. Our real estate professionals will create a home improvement plan to help you prioritize projects, improve home functionality and maximize value–whether you’re considering selling your home or not. Contact us to schedule a home consultation with no cost or obligation.