 Market Updates from Eileen Townsend
Autumn 2008 |
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| Quick Links |
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If you are interested in any of the properties pictured above (my latest listings) click the addresses below. Or visit the LMSRE site to see the total market:
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| Mortgage News |
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The Federal Reserve cut short-term interest rates 10/29 by a half-percent. In doing so the hope is that the "credit freeze" will continue to thaw by giving banks a greater incentive to lend to one another. Mortgage rates have continued to be volatile; we've seen daily swings between 6% and 6.75%. And
while lending guidelines continue to change (see "What's Different in Mortgage Financing, below), loans continue to be available to those with good credit!
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| Dear Friends, Colleagues, Clients: Following an historic election, on the cusp of what will be our future, I am writing to keep in touch, and to keep you informed about what is happening in real estate. The good news is: We still have an active Vermont -- and Chittenden County -- market. The good news remains ... our market continues to outperform national averages and avoid the volatility of large, speculative markets. Yes, the number of homes being sold is down from recent peak years, and yes, prices have moderated. For those interested in buying, or even just considering it, I can't think of better market conditions ... great selection, reasonable pricing, historically low interest rates ... and sellers who recognize the wisdom of presenting a well maintained, well priced home in this competitive market. Some markets in the south (Florida) and west (California) already have seen tides turning, with buyer activity picking up dramatically in the past month to six weeks.
While the markets shift, reconfigure, and re-adjust --- whether due to electoral changes, emerging cautiousness in financial outlooks, or renewed commitment to energy consciousness --- please be assured that as your Realtor, backed by the experience and resources of Vermont's largest and leading agency, I will continue to have at my fingertips the information and perspective you need to make decisions involving real estate.
Here is a sampling of some of the latest developments and topics of interest. Please feel free to phone or email me for more detail, with any individual question, or just to see how your home (or dream for a different home) may be faring in current market conditions. As I have learned through 15 residential moves of my own over the past 25 years: Life goes on, families grow and contract, jobs change, dreams emerge; all of these factors affect when, where and how we choose and live in our homes. I'm here to help you make the most of your real estate dreams. I can't wait to see your dreams come true!
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"So, How's the market?" updated 11/08
While supply of homes is up in comparison to recent "hot" years in real estate, the average sales price of homes closed this year in Chittenden County is off just 4% year-over-year. Homes that are priced to the market are selling in an average of 87 days in Chittenden County. The overall inventory of homes is decreasing as we enter the winter market, and market times in the winter months are typically longer. County Active Pending Inventory Number of Avg Price Price Ch.
Absorption Sales Closed YTD 07-08
Rate YTD
Chittenden 930 85 50 wks -18% $281,500 -4%
Franklin 493 43 80 wks, 21 mo -20% $197,287 -1%
Addison 351 24 102 wks, 25 mo -5% $254,700 -2%
(source: VREIN data through 10/31) |
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| ATTENTION: First-time Home Buyers! |
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| First-Time Homebuyer Tax Credit
Here's how it works, as explained by the National Association of Realtors' Realtor Research files: As part of the Housing and Economic Recovery Act of 2008, a First-Time Homebuyer Tax Credit is now available. But this special tax break ends in mid-2009. A homebuyer tax credit has been available for first-time homebuyers in Washington, D.C. for many years, and now first-time homebuyers nationwide can take advantage of a similar benefit. The following link provides details on the provisions of the credit and explains how to use it:
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| How the Mortgage Market is Changing |
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(as explained by Spruce Mortgage) This year's economic news will make history. Our industry is evolving and changing as the U.S. and global markets and economies adjust. We have seen substantive changes in the mortgage world over the past year-- some changes have been positive and some have been more challenging. Fannie Mae and Freddie Mac have been placed in a conservatorship, nearly 300 major U.S. lenders have gone out of business,* and the stock market has seen a significant decline. It is likely that we will see a shift in the Wall Street business model. The economic instability of the recent months has created a mirror image in mortgage rates with many changes in rates each day. With that said, a reminder that rates are still very close to historic lows.
Notable changes in the industry:
--The financing process is now credit driven and borrowers with a 740 credit score or above have access to the best mortgage rates.
--There are limited 100% financing options available.
--Investment properties now require a minimum of 15% down due to mortgage insurance restrictions.
--Combining first and second mortgages as a way to avoid Private Mortgage Insurance (PMI) is available only on a very limited basis.
--Private Mortgage Rates have increased, however mortgage insurance is tax deductible through at least 2010.
--Financing for condominiums has changed dramatically. In addition to the borrower needing approval for financing, the condominium project now needs approval. The condominium declarations, by-laws, budget, details about number of units and number of units owned vs. rented all need to be reviewed by underwriters as part of the loan approval.
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| Understand what goes into your credit score |
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The most widely accepted and used credit score is computed using a formula created by the Fair Isaac Corp. Nearly 50 years ago founders Bill Fair and Earl Isaac discovered they could predict how likely a consumer was to miss a payment or default on a loan if they could collect enough information about that person's credit history. As a result, your FICO score is based on what banks, stores, utility companies and other creditors tell the three major credit rating agencies about how much you owe and how diligently you pay your bills.
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| I Recently Met .... |
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 A Color Consultant Who Can Save You All Kinds of Hassles!
A color consultant can help you through the array of problems and choices you face when preparing to paint -- or re-paint -- or re-decorate with fabric and furnishings. Betsy Dempsey of Artistic Finishes -- 802-878-5298 -- recently worked with my clients Jeremy and Jennifer Towne whose home on Greenbush Road is on the market (see their lovely backyard view above). Winter's a great time to spruce up for the spring market ...
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I hope to be in touch again soon. Meantime, pLease feel free to email or phone for any real estate need.
Sincerely,
Eileen Townsend CRS, ABR
REALTOR, Broker
Lang * McLaughry * Spera
O-802-846-7861
C-802-734-6937 | |
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