V
ermont's red-hot real estate market is showing signs of a shift, with some properties lingering on the market longer and inventory building up in certain areas. Despite the summer slowdown, Vermonters are still actively buying and selling homes, keeping the market hot but also introducing corrections. According to Burlington realtor Sarah Harrington, the last four years were marked by low-interest rates and high demand for Green Mountain homes, but this is changing as buyers become more selective with their offers.

    "We're seeing some price reductions in certain cases, and sellers are being more conservative with their pricing," Harrington said. The statewide median home price remains around $442,000, while interest rate increases have kept those with COVID-era rates locked into their homes. This has also made it harder for first-time buyers to enter the market.

    Vermont still faces a deep housing crisis, which is causing social and economic shockwaves in communities. A recent report from the State Housing Finance Agency shows that household sizes are shrinking, while the state needs up to 36,000 units over the next four years to meet demand. "We don't have enough places to house people, especially workers – it's not just a Vermont issue, it's a national one," said Peter Tucker with the Vermont Association of Realtors.

    As lawmakers return in January, expanding Vermont's housing stock and debating land regulations are expected to be major topics of discussion.