On October 12^th a 1,919 acre parcel in Chester, VT listed for $14.5 million went under contract. While this includes an old farm house and outbuildings, it is listed in the MLS as a land listing. Building values aside, this implies a price of $7,550 per acre.   Generally, the larger the parcel, the lower the price per acre.  While the property still has to close, it would appear that this is not the case here.   Hundred acre parcels rarely trade above this level on a per acre basis.  Clearly this must be very special land! It is also interesting to note that 1,655 acres or 86% of the land is enrolled in Vermont’s Land Use program.  As a result, this will be good tax shield for the buyer assuming that the taxable value per acre for Vermont Woodlands continues to be $122 per acre.

Also of note this week, a 143 acre parcel in Tunbridge listed for $595,000 went under contract.  This property includes a nice restored barn and had only been on the market for 39 days.  Once again, large parcels continue to be attractive to land buyers in Vermont.

Vermont land sales were mixed in September.  Forty-one parcels sold compared to fifty last September.  Total dollars, however, at $6.3 million – increased 41% over last year’s level of $4.5 million.  Not surprisingly, the median sales price shot up a whopping 71% to $100,000 from $58,200.  The primary reason: more large parcels sold this September.  Ten were larger than 50 acres compared to eight in ’09.  Fourteen were between 10 acres but less than 50 compared to nine last year.

Other points of note include:

• A 15 acre sale in Stowe for $1,195,000. Total time on the market was 190 days
• A 23 acre parcel sold in Panton with frontage on Lake Champlain for $700,000. 198 DOM
• A 400 acre woodlot in Wolcott for $315,000. DOM 275 days.
• An 86 acre parcel in Williston for $310,000. Only 35 Days on the Market (DOM)

Safe to say good parcels continue to sell well and in some cases for prices as high as we saw before the recession.

October has also begun well with a $1 million sale in Pomfret for 117 acres.  This sale also included a second 9 acre parcel for $200,000 so, in total, the buyer bought 126 acres for $1.2 million.  A 600 acre parcel has also gone under contract in early October after being on the market for 880 days.  Yes, 880 days.  At the end of September, there were 113 land parcels under contract that had yet to close.

I couldn’t help but notice that three large parcels went under contract today: A 600 acre parcel in Canaan, VT; a 165 acre parcel in Cambridge, VT and a 100 acre parcel in Worcester, VT.  Also of note, a 209 acre parcel listed in Wolcott, Vt closed today for $315,000. Large chunks of land are on the move setting the stage for a solid 4th quarter.  Be sure to see my post from last night to learn more about how the Vermont land market appears to be on a rebound.

Residential sales may be soft, but Vermont land sales are not. Year-to-date (Jan 1 – Aug 31) the total number of parcels sold statewide jumped 42% compared to the same period in 2009 to 342 units while total dollars increased 52% to $35.5 million.  Parcels sized from 10 to 24 acres were the most active with 95 units sold while those with 2 to 4 acres and less than 2 acres were also strong at 74 & 78 units respectively.  Large parcel sales have also gained momentum.  Twenty-seven  100+ acres parcels have sold so far this year in Vermont compared to 18 by this time last year. Three of these were priced in excess of $1 million and sold for $950K, $935K and $720K.  All were in Windsor County.  Three more 100+ acre parcels are under contract, 2 of which are in Windsor County.  One of these Windsor County listings is in Pomfret, 117 acres with a list price of $1.2 million.  A property in Stowe priced at $1.195 is also under contract, but it has only 15.2 acres.  Twenty-six parcels sized from 50 to 99 acres have sold so far in 2010 compared to 14 in 2009.  Thirty-five parcels with 25 acres but less than 50 acres have sold vs. Twenty-five in 2010.

Keep in mind, 2009 was especially slow and part of a longer trend downward.  In 2008,  457 units sold for the period with a total dollar volume of $55 million.  In 2007, 538 parcels sold with a total volume of $68.4 million and in 2006, 709 sold for a total of $89.2 million.  Safe to say this year is far better than last and it would appear that we have turned the corner, but the Vermont Land market still has some “ground” to make up to get back to where it was a few years ago.

While home sales in the state of Vermont year to date continue to track well ahead of last year, July did not far well. Unit sales were off 31% from 417 residential sales in ‘09 compared to 284 in 2010. Median sales price also declined 3% from $206,000 to $200,000 while the number of days it took to sell a home increased by 10% to an average of 159 days.

Closer to home in Windsor County, July was even worse with the number of sales off 49% from 68 to 35. Average days on the market jumped 50% to 264 days.

Windsor County has had a tough year thus far overall even though the state has fared better. Statewide, total unit sales are up 14% for the year through the end of July, but in Windsor County, sales are off 43% from 455 residential sales in ‘09 to just 260 in 2010. Not surprising the median price is also off 4% to $190,000 from $198,000 while the average days on the market has increased 31% from 183 days to 239.

Windsor County’s troubles do not help if you are trying to sell a property,  but they are equally troublesome for the state which looks to the region for transfer tax incomes as well as property tax income for state education.  Year to date in 2009, Windsor County accounted for 23% of the state’s unit volume and 27% of the total $ volume. This year it represents only 12% for both.  It is also interesting to note that while Windsor County used to be at parity with the state for Median Sales price, it has thus far fallen well behind in 2010 having slipped to $190,000 compared to $200,000 state wide.

Looking ahead, because of  high inventories in Windsor County, currently at 2.3 years, prices are likely to decline further unless of course we see an increase in demand.  Until there is a better employment picture and a more robust home market down south, both the primary market and the second home market will continue to be soft.  Hopefully for the state, July is only an anomaly for an otherwise improved year and for Windsor County, I do hope to see a better second half in 2010 compared to the first.