Industry News
As the largest ski resort in the eastern U.S., Killington, Vermont, is appropriately known as the “Beast of the East.” Now, according to a report by Prestige Real Estate, the first quarter of 2024 was a beast for condo sales. It is no secret that post-pandemic real estate has risen in mountain communities, but recent real estate statistics at Killington are surprising.
The numbers show an overall 150% increase in the volume of Killington property sales, and condominiums dominated those numbers. In addition to commanding the market, the average sale price of condos increased 60% over last year for the same period. Seventeen condos sold in the first quarter compared to only five in the first quarter a year ago. The average sale price of condos increased from $377,000 to over $600,000. Additionally, for the first time ever in Killington, more than a third of the condos sold for over $800,000.
Why the sharp increase?
In May of 2023, Canadian company Great Gulf Group, one of North America’s largest home builders, purchased land at the foot of Killington Ski Resort for $43 million. The intention is to develop the nearly 1,100 acres into condos, townhomes, and single-family homes, along with a new retail village and lift lodge. The long-delayed project is expected to be done by 2027, but a healthy demand already supports condo prices in Killington.
The project’s first phase will include 193 condo units, more than 35,000 square feet of retail space, an 85,000 square-foot new base lodge to replace two existing ones and 32 new single-family homes. The improvements are expected to add more than $285 million of new taxable value to the area and yield over $115 million in new property tax revenues over 20 years.
Another reason could be the new normal that work from home is here to stay. If you’re going to work from home, it might as well be in a resort community. Instead of time-consuming commutes, logging into Zoom is much easier. Second homeowners are spending more and more time away from their primary residences, and they are becoming more like their first homes. Instead of coming up to the mountain on a Friday evening and going home on Sunday, they can come up on Wednesday and go home Monday or Tuesday.
Killington has huge commercial potential, and the location is convenient for regional skiers. What happens to real estate prices in the future is still to be seen, but it appears it is poised to be the next place where locals get priced out. It’s not just condos, either. Last year, Killington broke records for high-end home sales. Currently, only 10 homes are listed for sale in Killington, and there is a large price gap between them. Half are listed for under $1 million, while the other half are on the market for over $2 million. If you’ve ever considered purchasing in the area, now may be the time, as prices don’t appear to be going down anytime soon.
