Spruce Peak is one of several high-end neighborhoods in Stowe. (Photo courtesy of Stowe Area Association)

A strong second-home market is the defining factor in Stowe's real estate market, which is considered to be one of the strongest and most expensive in the state. Stowe has more homes listed for more than $1 million than any other town in the state.

First-time homebuyers will be hard pressed to find a home that does not require a significant amount of renovation or, at the very least, sprucing up for less than $300,000. In the mid range ($380,000 to $700,000), very nice homes -- some with excellent views -- can be found, and properties for more than $1 million offer stunning views, generous amounts of property and spacious homes.

As a result of the strong market, land comes at a premium in Stowe. Through June 2010, there were four land sales ranging from $64,000 to $270,000, and in 2009 there were just two land transactions for between $600,000 and $700,000 each. Local agents predict as land becomes more and more scarce, Stowe will see more low-end homes on choice pieces of land selling, with teardown and construction on the rise.

One factor in the strength of high-end real estate in Stowe could be the recent multimillion-dollar expansion at Stowe's Spruce Peak, where building lots are selling for between $985,000 and $2.2 million, and multimillion-dollar homes have been constructed.

Although the vacation home market drives Stowe's real estate trends, local agents say the ratio of primary and secondary buyers is about even. Primary buyers look in the low-to-mid range and seek smaller homes (which are more cost-effective to heat in the winter) with desirable locations, 3 to 6 acres of land with views, and the ability to add value through renovation or repair. Second-home buyers want a view, open meadows, a pond or river nearby, more than 2,500 square feet, a combination of traditional New England and big-mountain style, and high-end interior finishing.

Stowe's Current Real Estate Market

Real estate sales in Stowe took a sharp nosedive in 2009, but the market now shows signs of rebounding. Before the decline, Stowe's average home sale price was around $470,000, but sales so far in 2010 reflect a higher median of $617,000. As the market recovers, experts say the high end recovers first, the trend currently displayed in Stowe.

This doesn't mean there is nothing offered at the low end ($275,000 to $380,000). Some of this year's sales have been low-end homes, but the sales of four homes each for more than $1 million -- which accounted for 15 percent of the real-estate volume -- have played into the higher-than-normal average. In 2009 by contrast, the highest home sale was $800,000.

Although some Stowe residents would argue that the town doesn't technically have neighborhoods because of its rural setting, centralized village, and shopping and eating options, there are distinct residential areas. Their differences are dictated mostly by geography and associated characteristics that relate to real estate value.

Read on to learn more about Stowe's unique neighborhoods >>

Comments