Recently consumers have been bombarded by news featuring a “doom and gloom” picture of the real estate market nationwide. While national statistics do show that parts of the country are experiencing a change in the market, it is important to know that all real estate is local and conditions vary. What may be happening in other parts of the country is not necessarily occurring in Bennington County or throughout Vermont.

The real estate market in our area is healthy. At the end of the second quarter of 2007 the median price for primary residential homes in Vermont, which is the largest sector of Vermont’s real estate market, was up over 7% from a year ago at the same time. Homes may be on the market a little longer, but statistics reveal that with an attractive inventory of choices real estate continues to be a great opportunity for buyers and sellers alike.

These higher inventory levels, combined with low mortgage interest rates, help create favorable market conditions for home buyers. This is especially helpful for young households who want to make the transition from renting to owning. In contrast to conditions during the housing boom home sellers in many areas are now motivated to negotiate. In these markets, home buyers have increased negotiating power, but may be unsure of how to structure the best deal – they need a professional to help guide them through the transaction.

In light of the recent changes in the mortgage industry, with lenders tightening their guidelines, a REALTOR® and mortgage lender can help sellers and buyers navigate the pre-approval process. Vermonters also are fortunate to have organizations like the Vermont Housing Finance Agency (VHFA) to help guide potential home buyers through the financial process of purchasing a home.

As the real estate market becomes more balanced between buyers and sellers, home prices have stabilized. However, most homeowners can still realize a very good return on their investment. According to the National Association of REALTORS® (NAR), consumers who bought their homes six years ago have seen more than 50 percent appreciation in their home’s value during that time.

Buying a home should be approached as a long-term investment, providing both equity accumulation and tax benefits over time. Even when temporary corrections have occurred in markets that became overheated during the most recent housing boom, most of the country has never experienced a downturn in home prices since modern record keeping began. Low mortgage interest rates, a growing number of households, strong demographic factors, economic growth and job creation have helped drive record home sales in recent years.

All real estate is local, and there are opportunities galore. REALTORS® can help interpret the data and trends and help find the right fit for a homeowner’s needs and desires. Smart homebuyers, rather than running away from homes, are taking advantage of an extraordinary real estate market.

Categories: Bennington VT Real Estate, Market Outlook, Buying, Selling

We all know that homes in many markets across the country experienced substantial gains in appreciation over the last few years of heated real estate activity. While sale prices are currently leveling out, you may have experienced “sticker shock” if you recently got a property tax assessment that shot way up. (more…)

If you’re planning the purchase of your first home, you’re probably experiencing two conflicting emotions – excitement and apprehension. The positive energy from your excitement is an asset in your home search, but the negative energy from your fear of the unknown is a liability you can leave behind once you’re armed with some basic information. (more…)

Okay, it’s time to return to Real Estate 101. With so much gloom and doom reported, our successful sale stories are being pushed aside by national reports of overstocked inventories and reluctant buyers. Blaming slow sales on “the market” is just an excuse. There is only one reason that homes remain unsold: they are overpriced. (more…)

How would you place a value on your home? More critically, how would you put a price on your home? Sounds like the same question, but it suggests the difference between price and value that’s important to understand as you prepare to sell your home. (more…)

Real estate is experiencing an unusual adjustment these days. Unusual, because in the past, sales declined due to either high interest rates or economic slowdowns. Neither of those factors exist right now, so where does the blame lie? (more…)

Existing-home sales increased 2.0 percent in February to a seasonally adjusted annual rate* of 6.12 million units from a downwardly revised pace of 6.00 million units in January. Last month’s sales activity was 5.7 percent above the 5.79-million unit pace in February 2003. (more…)

Thirty year fixed-rate mortgages declined this week to an average of 6.22 percent, down from 6.30 percent last week and 6.26 percent a year earlier, Freddie Mac reports.

“Mortgage rates eased a little more this week, as market participants were concerned over how much drag the slowing housing market may have on economic growth,” says Frank Nothaft, Freddie Mac vice president and chief economist. “Last week’s release of housing starts for January showed the weakest reading since August 1997 due to the abundance of homes on the market.”

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Existing-home sales are expected to rise gradually in 2007 from current levels, with annual totals slightly lower than 2006, while new-home sales will continue to slide, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

David Lereah, NAR’s chief economist, says market conditions will vary around the country next year.

“Roughly three-quarters of the country will experience a sluggish expansion in 2007, while other areas should continue to contract for at least part of the year,” he says. “Most of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards.”

For Buyers, a Window of Opportunity
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