The Vermont housing market in February 2025 presents a complex landscape, characterized by contrasting trends in pricing, sales, and inventory. The Median Sales Price has decreased by 6.2% year-over-year, settling at $388,000. This decline suggests a cooling in the market, potentially offering opportunities for buyers seeking more affordable options.

Conversely, the Median List Price has increased by 6.6% year-over-year, reaching $484,700. This rise indicates that sellers are optimistic about the market's potential, despite the drop in actual sales prices. The median Price Per Square Foot has also seen a notable increase of 7.8%, now at $231, while the Median List Price per square foot has surged by 10.3% to $265. These figures highlight a divergence between seller expectations and buyer realities.

Sales activity shows a slight increase, with Homes Sold rising by 0.5% year-over-year to 374 units. However, Pending Sales have decreased significantly by 10.9%, totaling 505. This decline in Pending Sales could signal a slowdown in future transactions, possibly influenced by the rising inventory levels, which have grown by 12.2% to 1,733 units.

The number of New Listings has dropped sharply by 18.2%, with only 485 new properties entering the market. This reduction in New Listings, combined with the increased inventory, has resulted in a substantial 40% rise in the Months of Supply, now at 4.6 months. This shift indicates a transition towards a more balanced market, where supply is beginning to catch up with demand.

Market dynamics are further illustrated by the Median Days on Market, which have increased by 27% to 94 days. This extended time on the market suggests that properties are taking longer to sell, possibly due to the widening gap between list and sales prices. The average sale to list ratio has slightly decreased by 0.8%, now at 96.7%, indicating that homes are selling closer to their asking prices, albeit with some negotiation.

The percentage of Homes Sold above list price has dropped by 7.9% to 19%, reflecting a decrease in competitive bidding. Additionally, the rate of Price Drops has increased by 2.4% to 14.3%, suggesting that sellers are adjusting their expectations to align with market conditions. The percentage of homes going off-market in two weeks has decreased by 7.4% to 40.6%, further emphasizing the slower pace of sales.

Overall, the Vermont housing market in February 2025 is characterized by a mix of declining sales prices, rising list prices, and increased inventory. These trends suggest a market in transition, with potential opportunities for both buyers and sellers as they navigate the evolving landscape.