2023 - Mad River Valley Real Estate Annual Market Recap
Posted on 1/26/2024 by David M. Dion
Can you believe we are already well into 2024? Time flies!
2023 continued to be an extraordinarily busy year for real estate in the Mad River Valley, and amazingly it was just as hectic as the year before! Well whatever great stories you have for 2023 we at Mad River Valley Real Estate MRVRE hope your 2024 is off to a great start!
And speaking of start, the ski season in Vermont got off to a great start in November! Alas, an epic rain event on the Monday before Christmas sent most of the snow downriver. At one point we even saw waves from the Mill Brook washing over Route 100 across the street from our office! Then Christmas week was a bit dicey but after a couple of January storms all three ski areas are now enjoying great mid-winter conditions. In any event we hope all your New Year’s resolutions have remained intact.
2023 was another exciting and action-packed year at Mad River Valley Real Estate, and not just in the real estate realm. MRVRE continues to sponsor WiFi service to the public in the Bridge Street Marketplace, Mad River Valley Recreation Field, and Warren Village. MRVRE also continues to sponsor the Mad River Glen Webcam which is the place to go for what the weather is doing at Mad River Glen in real time.
We are especially thankful for the way Sugarbush Resort and Mad River Glen weathered the pandemic over the past three years by continuing to provide a safe skiing experience. Thanks also go to the many local businesses who followed Covid protocols and especially Shaws and Mehurons markets for allowing us safe access to groceries. And as always thanks to Waitsfield Telecom for providing us with always reliable internet service.
If hindsight is 2020 then despite the pandemic (or perhaps because of it) Mad River Valley Real Estate could not have been busier, nor better prepared! Overall real estate values rose quite rapidly over the past three years and staying on top of it was no easy feat. When the numbers finally settle out 2023 will be slightly down from the record volume of real estate sales in the Mad River Valley in 2021, but still a very strong showing.
Agents at MRVRE have a long history of participating in extraordinary real estate transactions (and adventures!) and 2023 was no exception. Following are a few highlights:
Partner Steve Robbins enjoyed another busy year in real estate sales. Also, after several years leading the Moretown Recreation Committee, Steve stepped down from that position. He remains active on the subcommittee reviewing the Moretown Town Forest Management Plan and still enjoys the trails year-round. We also occasionally see his Steve’s Backyard Red artisanal beer on the shelves at Lawson’s Finest Liquids. This is arguably the finest red ale on the market today. Well at least by this author’s standards! In the real estate realm Steve also shepherded the sale of the iconic Village Grocery & Deli which is a nice feather in his cap. Best wishes to informal Mayor Troy Kingsbury on his next pursuit.
Partner Erik Reiser brokered a blistering $13,056,000 in dollar volume of real estate sold in Vermont making him the number one producing agent from the Mad River Valley. Erik also recently landed the latest Kingsbury Construction development project popularly known as Estes Landing in Waitsfield. Finally, we have some desperately needed new housing inventory to offer. Erik also continued his extra-ordinary contribution to the MRV community by serving as a tireless volunteer first responder for the Mad River Valley Ambulance Service. Erik has been with MRVAS for 16 years. A huge thanks to Erik, (and his supportive family too!) for contributing his hugely valuable and critically needed volunteerism.
Partner David Dion keeps the mechanics running smoothly at MRVRE while continuing to participate in unique real estate projects. When not selling real estate, David continues to make great progress on his farm and eco-lodge in the Turrubares Mountains of Costa Rica. The numerous food crops include 500 cacao trees and 1,000 coffee plants which are finally producing coffee cherries! And the not so great news? A rogue “pantera” (Spanish for mountain lion) has been eating the sheep and rabbits! Time to build a better barn.
Office Manager Brent Adams recently took a position as Warren Assistant Town Clerk. Although we will miss Brent’s steady hand at keeping things running smoothly, we are never-the-less thrilled about this great career move. Congratulations Brent!
Most importantly, we were blessed with our many loyal and supportive clients and forged many wonderful new relationships in 2023. To all who helped MRVRE along the way, a huge THANK YOU!
Following is a recap of the 2023 real estate market based on MLS reported real estate sales in the Mad River Valley towns of Fayston, Moretown, Waitsfield and Warren, (source: Northern New England Real Estate Network, Inc. for the period 01/01/23 – 12/31/23). Please call or write if you are interested in a recap of real estate data and trends in specific areas outside of the Mad River Valley.
In 2023 there were a total of 148 MLS reported real estate sales (down from 197 sales in 2022, 277 sales in 2021, 284 sales in 2020, 237 sales in 2019, 206 sales in 2018, 217 sales in 2017, 175 sales in 2016 and 171 sales in 2015). Clearly the overall real estate market in the Mad River Valley is on the backside of the 2020 peak in sales. That should be no surprise given both higher inflation and also the mortgage interest rates more than doubled in 2022. But it’s also the result of simply not having enough inventory on the market at any given point in time.
Drilling into the specifics, there were 59 single family residential sales ranging from $122,500 to $3,750,000 (down from 74 sales in 2022, 104 sales in 2021, 117 sales in 2020, and 95 sales in 2019).
00 @ < $100,000 (01 sales in 2022, 01 sales in 2021, 01 sales in 2020, 03 sales in 2019)
03 @ $100,000 - $199,000 (01 sales in 2022, 03 sales in 2021, 04 sales in 2020, 01 sales in 2019)
02 @ $200,000 - $299,000 (03 sales in 2022, 15 sales in 2021, 18 sales in 2020, 27 sales in 2019)
06 @ $300,000 - $399,000 (06 sales in 2022, 17 sales in 2021, 33 sales in 2020, 23 sales in 2019)
12 @ $400,000 - $499,000 (13 sales in 2022, 12 sales in 2021, 17 sales in 2020, 17 sales in 2019)
06 @ $500,000 - $599,000 (14 sales in 2022, 15 sales in 2021, 09 sales in 2020, 09 sales in 2019)
09 @ $600,000 - $699,000 (10 sales in 2022, 09 sales in 2021, 07 sales in 2020, 06 sales in 2019)
08 @ $700,000 - $799,000 (05 sales in 2022, 05 sales in 2021, 10 sales in 2020, 03 sales in 2019)
04 @ $800,000 - $999,000 (12 sales in 2022, 10 sales in 2021, 10 sales in 2020, 03 sales in 2019)
09 @ >$1,000,000 (09 sales in 2022, 17 sales in 2021, 08 sales in 2020, 03 sales in 2019)
65 condominium sales ranging from $92,500 to $1,255,000 down from 81 sales in 2022, 109 in 2021, 118 in 2020, and 115 sales in 2019)
01 @ < $100,000 (05 sales in 2022, 08 sales in 2021, 12 sales in 2020, 28 sales in 2019)
14 @ $100,000 - $199,000 (21 sales in 2022, 40 sales in 2021, 45 sales in 2020, 46 sales in 2019)
17 @ $200,000 - $299,000 (10 sales in 2022, 32 sales in 2021, 25 sales in 2020, 15 sales in 2019)
10 @ $300,000 - $399,000 (10 sales in 2022, 11 sales in 2021, 19 sales in 2020, 13 sales in 2019)
09 @ $400,000 - $499,000 (10 sales in 2022, 08 sales in 2021, 06 sales in 2020, 04 sales in 2019)
11 @ $500,000 - $799,000 (21 sales in 2022, 07 sales in 2021, 09 sales in 2020, 05 sales in 2019)
03 @ > $800,000 (04 sales in 2022, 03 sales in 2021, 02 sales in 2020, 04 sales in 2019)
21 land sales ranging from $40,000 to $425,000 (down from 37 sales in 2022, 56 sales in 2021, 49 sales in 2020, and 25 sales in 2019.
03 @ < $100,000 (04 sales in 2022, 18 sales in 2021, 23 sales in 2020, 13 sales in 2019)
06 @ $100,000 - $199,000 (14 sales in 2022, 18 sales in 2021, 14 sales in 2020, 08 sales in 2019)
05 @ $200,000 - $300,000 (08 sales in 2022, 11 sales in 2021, 03 sales in 2020, 02 sales in 2019)
05 @ $300,000 - $400,000 (04 sales in 2022, 05 sales in 2021, 05 sales in 2020, 01 sales in 2019)
02 @ $400,000 - $499,000 (04 sales in 2022, 01 sales in 2021, 02 sales in 2020, 00 sales in 2019)
00 @ >$500,000 (03 sales in 2022, 04 sales in 2021, 02 sales in 2020, 01 sales in 2019)
03 commercial sales, (05 sales in 2022, 09 sales in 2021, 01 sale in 2020 and 02 sales in 2019)
Ok so here is our take on these statistics. First, the local real estate market in the Mad River Valley is still very active. Yes, the number of overall sales has dipped in every segment of the market. But that is simply a function of fewer properties coming on the market. And the great majority of properties that do come on the market enjoy a great deal of buyer interest. Indeed, we are continuing to experience very competitive multiple offer situations.
Secondly, the rise in interest rates should have had a dampening effect on demand. However, we are finding that many transactions do not include a financing contingency. Where is everyone getting all this cash? I don’t really know!
Folks, some of these numbers are quite striking. For example, the number of residential sales at over $800,000 has historically been very low with as few as 3 sales in 2017 and 2018. However, last year there were 13 sales and the year before there were 22 sales. Similarly, the number of condominium sales at over $500,000 has increased from only 06 sales in 2014 to 14 sales (there were 25 sales in 2022). This tells us the upper end is becoming the dominant segment of our market, and perhaps for the first time in the history of recorded real estate sales. If you are the owner of a luxury property in the Mad River Valley there has never been a better time in history to be offering your home for sale.
The commercial and hospitality (lodge, B&B, Inn, restaurant) markets continue to show the greatest weakness in sales. As a result, these segments of the market offer some of the very best buying opportunities with some sales still at a discount from 2005 values. Also, the land market has made very good gains in the past few years and there are still a few good opportunities out there right now.
The biggest take-away from the above statistics is homes and condominiums in every segment of the market are seeing extraordinarily strong buyer interest and record sale prices. As a result, inventory is at its lowest ever. If you own real estate in the Mad River Valley, then without question this is absolutely the best time to consider a sale.
Please check out our website at www.mrvre.com and click on “blog” to see more in-depth analyses and some very insightful graphs depicting the Mad River Valley real estate market.
Presently there are 19 single family residential properties for sale (up from 05 properties at this time last year, 12 in 2022, 33 in 2021, and 62 in 2020). 10 of those 19 properties are under contract of sale. This trend is a clear indication the inventory is very low and the market is in need of properties for sale.
Today there are 11 condominiums for sale (up from 10 at this time last year) but with 07 of those 11 units under contract of sale. So almost no condos are for sale and the inventory is at historic lows. If you are a prospective condo seller, this is certainly the best time to contact us for a market evaluation.
There are 17 parcels of land for sale (up from 13 last year) and with 01 under contract. The inventory has finally come down from the great over-supply we have been dealing with for years and this segment of the market is finally seeing a strong increase in value for the first time since 2008. Give us a call and we would be happy to explain in more detail.
Whether it’s a seller’s market or a buyer’s market the best opportunities for sale include a desirable location, good overall condition, and realistic pricing. By contrast if you are in a less desirable location, with a lot of deferred maintenance and you are asking a premium price, then in that event you should expect your property to be for sale for a very long while.
Clearly those who are best informed are making the most prudent buying and selling decisions in the Mad River Valley. And it’s no coincidence that at MRVRE our clients are realizing some of the best purchase and sale opportunities ever in the Mad River Valley.
From all of us at MRVRE best wishes for a happy, healthy, and prosperous 2024!