Home Values in Vermont
The median home value in Vermont is $375,000. Vermont saw extraordinary demand during COVID as New York and Boston metro residents sought rural retreats. Chittenden County (Burlington) and ski resort towns (Stowe, Killington area) have seen prices up 40-50% since 2020.
What Drives Home Values in Vermont?
Several Vermont-specific factors influence home values beyond national trends:
- Property tax burden: At 1.78% (avg. $4,329/year), Vermont's taxes are above average, which suppresses affordability and can pressure values
- Assessment methodology: Vermont assesses property at 100% of fair market value.
- Buyer exemptions: Vermont's Income Sensitivity Adjustment is a unique system where lower-income homeowners' effective education property tax rate is capped at a percentage of their household income, rather than a fixed rate.
- Financing limits: Conforming loan limit is $726,200 — All Vermont counties are at the standard conforming limit.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in Vermont typically pay 6-8% of the sale price in total transaction costs. Vermont charges a property transfer tax of 1.25% of purchase price for properties over $100,000 (0.5% for the first $100,000). Principal residence rates are discounted. Overall closing costs are moderate for the Northeast.
Frequently Asked Questions
What is the average home value in Vermont?
The median home value in Vermont is $375,000. Vermont saw extraordinary demand during COVID as New York and Boston metro residents sought rural retreats. Chittenden County (Burlington) and ski resort towns (Stowe, Killington area) have seen prices up 40-50% since 2020.
How do property taxes affect home values in Vermont?
Vermont's effective property tax rate is 1.78%, with an average annual bill of $4,329. This high tax burden is a headwind for Vermont home values in some markets — high annual bills reduce what buyers can afford.
What is the conforming loan limit in Vermont?
The conforming loan limit in Vermont is $726,200. All Vermont counties are at the standard conforming limit. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in Vermont?
Sellers typically pay 6-8% of sale price in total transaction costs. Vermont charges a property transfer tax of 1.25% of purchase price for properties over $100,000 (0.5% for the first $100,000). Principal residence rates are discounted. Overall closing costs are moderate for the Northeast. Buyers pay an additional $3,800 in closing costs.