Mountain Times - Volume 48, Number 48: Nov. 27-Dec. 3, 2019

66 • HOMELIGHT WORLD CUP
The Mountain Times • Nov. 27 - Dec. 3, 2019
Real estate boom: Killington real estate demand and sales are booming. Four season investment and short-term rental revenue are factors.
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data, noted Prestige broker Heidi Bomogen.
“The market has been strong across the board:
homes, condos, and land. The number of homes sold
was up 18 percent with the average sale price rising 39
percent. The number of condos sold was up 37 percent
with the average sale price rising 30 percent. The
number of land parcels sold was up 38 percent with
the average sale price rising 418 percent,” Bomogen
reported of the three-quarter-year data.
As of Nov. 25, Bomengen reported 33 single family
homes, 23 condos and 22 lots on the market.
“It’s a hot, sellers’ market finally! Demand is strong.
Inventory is very low, particularly for condos.
“There is also a shortage of houses in the $500-700K
range. One-third of the houses currently listed are
over $1,350,000,” she stated.
Brokers busier than ever
“In my 16-year career, this is by far the busiest I
have ever been, and it is completely a sellers market.
Over the past two years the real estate market has
transitioned from a buyer’s market to the sellers’ market
we are currently in,” commented Bret Williamson,
owner/broker of Killington Valley Real Estate.
Williamson said 60% of his sales have been condos,
noting they are at the lowest inventory levels he’s seen.
“As of today there are currently 24 full ownership condos
on the market where as a year-and-a-half to two
years ago you would have had 100,” he said.
“There is a need for more inventory for condos and
single family homes. I am seeing an increase in land
sales and listings as well, which makes sense as land
was very slow in past years. As the market has gained
momentum, land listings are popping back up and
starting to sell,” he added.
As for prices, Williamson said he has had “listings
and sales ranging from the mid-$100,000s to over a
million,” adding he has seen “a fair amount of requests
to view homes over the $1 million mark and that caliber
house has a fair amount of listings currently.”
Williamson also reported that Killington Valley’s
traditionally strong winter seasonal rental market has
continued. “Recently the summer rentals market has
grown so listing properties for summer has been a
market that is growing, too,” he added.
Ski Country broker Tricia Carter said, “People are
coming out of the woodwork.” Sellers are asking for
the values on their properties while buyers are looking
for properties with cash flows, etcetera. “I almost
feel like it is back in the 1980s when there was new
construction going on
and real estate activity
was booming,” she
commented.
Kyle Kershner,
broker/owner of
Killington Pico Realty
echoed Carter’s
observation, noting,
“We’ve been straight
out. It’s actually slowed down a little since Columbus
Day, but from July to October was just unbelievable.”
Kershner said that demand had picked up a year
ago and, as of Oct. 9 of this year, he personally had the
most contracts pending (signed but not yet closed)
at one time in his 19-year career. Similarly, his company
and KPR broker Jessica Posch also had the most
contracts pending.
He observed that sales in Killington and nearby
towns have been increasing year-over-year for several
years, but better demand hadn’t turned into appreciation
in the past, adding the 2008 economic downturn
had resulted in a 35 percent depreciation in property
prices.
“The median sales prices remained flat until 2017
which was the first time we saw a jump. Since that
Clients ... ask about a property’s ability
to being used for short-term rentals,
Kershner reported, noting many want to
use their vacation property but also have
rentals to help with expenses.
Courtesy of Presige Real Estate
A chart shows year-to-date real estate sales in millions of dollars in Killington from 2011 to the present 2019.
time, we’ve seen two years of double digit appreciation,”
Kershner noted, adding that the medium price
of condos is up 16 percent (as of Nov. 21) over last year.
Appreciation extends to units at the Killington Grand
Hotel, which he said is reported to be the second highest
traffic [occupancy] hotel in the state of Vermont.
He also said buyers are not looking for fixer uppers
but rather updated and upgraded properties that are
ready to move into.
“We’ve transitioned from a seller’s market to a more
balanced market and we’re seeing multiple offers on
the best properties,” he added.
Observing that a rising tide lifts all boats, Kershner
said there have been good sales in surrounding towns.
“One house in Pittsfield saw seven offers in 72 hours,”
with the bidding problem resolved with a deadline.
“In the last 15 years the luxury market in Killington
averaged one $1-million-plus
sale per year,
but we’ve had three in
the last 12 months, including
one home that
sold for $2.4 million,
which was the highest
priced sale in Killington
to date. That says a
lot,” he added, noting
the luxury market has definitely picked up.
Multiple factors drive demand
Williamson said he feels it’s “not one thing in particular
that is responsible but a lot of different factors
that have all helped propel the market to where it is
now.”
“I look at the market from different perspectives,
as a parent of two small children, as a business owner,
and as an active participant in the community involved
in various clubs, sports, and board of directors.
Things from the Killington Elementary School being
ranked as one of the best in the state of Vermont to Killington
Mountain School expanding programs offered
to their athletes have both been reasons that certain
sales have closed for me in Killington.
“Killington Resort has been a driving force in the
development of the mountain biking and adventure
center which has also brought a lot of attention to
Killington for the summer months. The [town’s] recreation
department also has fantastic camps for kids
that are well run and a great, value which is another
positive for the area. I remember taking notice a
couple years ago that the market was heating up and
when Killington announced that a $20 million investment
was happening, it was off to the races,” Williamson
opined.
Bomengen cited similar reasons for the hot market,
adding that she thinks: “people are feeling financially
secure” and “Killington properties represent a very
good value compared to other ski area real estate, particularly
in comparison to Stowe, Okemo, and Stratton
with whom we compete.”
She also observed there is “a greater appreciation
for what mountain operations can do based on pulling
a World Cup event off during Thanksgiving weekend
multiple years in a row and that people recognize
the investment that Powdr has made, and is continuing
to make, in the mountain in the form of new lifts,
new trail flow, and new lodges.”
Kershner agreed with the foregoing “host of positive
trends,” adding that the addition of the yearround
season pass and Killington Resort’s commitment
to year-round activities have had a very positive
effect. While some ski areas have seen a slowing
market, Kershner said he thinks the local market is
“outperforming,” based on discussions with brokers
from other resorts.
Short-term rentals drive hot market
Noting that the prior busy vacation property market
of 2003 to 2007 was driven in part by the national
“flipping craze” (in turn driven by TV shows) of purchasing
fixer uppers, making changes, and selling for
a profit, Kershner said he thinks the current change to
a hot market in Killington is “driven by the short-term
rentals trend.”
Clients interested in purchasing ask about a
property’s ability to being used for short-term rentals,
he reported, noting many want to use their vacation
property but also have rentals to help with expenses.
Real estate boom, cont. > 65