 Chittenden County
Real Estate
Year in Review
Eileen S. Townsend, REALTOR-Broker Winter 2009
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Dear Colleagues, Clients, Neighbors and Friends:
As we enter a new era from the White House to Wall Street to award-winning Church Street, recently named one of the nation's10 Great Public Spaces, I can't help but feel a breath of hope taking the edge off of the winter chill. Despite news we'd rather avoid on many fronts, I see resilience in my clients' and colleagues' moods, even those affected by furloughs and layoffs, as we all call upon our own brand of American ingenuity and strength of spirit to seek the new path that will lead us to our brighter futures.
In just the past week, one couple phoned to announce they were taking advantage of the choice in the market and fabulous interest rates to help put their daughter into a first home purchase as she moves out to launch her career. Another family, relocating to Vermont for "his" job, faced the possibility that "she" may not keep her paycheck. They adapted their househunt from one price range to another, saying, "As we run the numbers for our income taxes, we just can't abide another year without the mortgage deduction." A third couple, having recently become empty nesters, called to say, "We may never have a better opportunity to find something on the water ... let's go."
As I balance work and family obligations and what I hope is an active lifestyle against the payment of my daughter's college tuition, I find I'm learning every day the meaning of the word frugality. I'd have felt that change regardless of the economy; in a way, I'm comforted that the whole country shares the experience. I'm hopeful each of you finds the flexibility to adapt to whatever changes come your way. If change brings real estate needs, I'm here to help.
Eileen S. Townsend, REALTOR-Broker
Accredited Buyer Representative (ABR)
Certified Residential Specialist (CRS)
Lang * McLaughry * Spera
Office: 802-846-7861
Cell: 802-734-6937
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Inventory of homes improves vs. pending and closed sales
 Chittenden County by the numbersAt the 18th Annual Vermont Economic Outlook Conference (presented by The Vermont Economy Newsletter) in January, Moody's Director of Macroeconomics Gus Faucher reported that inventory is beginning to return to a balance with supply of homes, nationally and in Vermont. In the chart at left, we see that reflected in the Chittenden County market, where the number of homes for sale peaked near 1000 in mid-2008, then settled back toward 800. (As of this writing, there were 770 active properties in the Chittenden County MLS.) This translates to about a 7.5 month supply of homes on the market, with industry standards for a "balanced" market at 5.5 to 7 months, according to the National Association of Realtors (NAR).
During the final quarter of 2008, we did see a decline in the number of homes pended and closing, as the effects of economic news during the fall were felt throughout the housing market. Since then, however, Rueters news and the NAR have reported that pent-up demand among buyers is bringing about a rebound: the number of homes going under deposit (nationally) in December "surged 6.3% ..., rising for the first time since August ... and up 2.1%" over a year ago. Chittenden County's pending and closed sales figures have yet to reflect that trend, but if activity in my own office is any indication, our numbers should not be far behind. Buyer calls, showing activity, and negotiations on contracts are decidedly busy since the first of the year. |
Average Price inches down, but compares well nationally 
All markets are local.
National news reports shaped by the dynamics of large metropolitan markets can be daunting. But Vermonters have their own way of transacting business, and it shows in the stubbornness of our average price, down just 4% year-over-year in Chittenden County, despite steep drops elsewhere.
We continue to see well maintained homes that are prepared for market, and priced to current conditions, bring activity and offers within a reasonable period of time. Average list-to-pending days-on-market in Chittenden County have hovered in the 80s most of the year, ending the year with an average marketing time of three months for homes that have sold. Average time on the market for all homes is longer: most of the year saw 7 to 7.5 months of overall inventory, December jumped to a peak of over a year's overall inventory, but recent numbers reflect a return toward 7 months of market time on average. |
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Price per Square Foot relatively unchanged
 Holding PatternWhile average prices have trended downward slightly, price per square foot has remained in a predictable range that is relatively unchanged since 2005. The expectation is for some further adjustment in price over the next year, which is likely to affect average prices of homes sold overall, as well as price per square foot. We expect home prices to solidify and stabilize as consumer confidence returns to the market. |
5-year Trend: Chittenden County still up more than 25%
Solid Longterm Value
Like the nation, Chittenden County experienced a drop in the number of homes sold in 2008 in comparison to recent years. Bucking the national trend, though, average values have resisted pressure to fall, earning the Greater Burlington market accolades as one of six "safe havens for real estate investment' from Kiplinger Finance. Executive priced homes and the second home market have been the most susceptible to price pressure, although there continue to be exceptions for sought-after addresses in good condition. The market under $300,000, foten first-timers first move, is extremely active; the luxury market is faring well locally. Over a five-year period, real estate here proves to hold its own as a solid long-term investment, resistent to short term fluctuations seen in more volatile markets and in other investment categories.
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Mortgage Rates Remain Historically Low
 Credit Climate Conducive
With credit guidelines continuing to tighten, customers with healthy credit histories still can obtain extremely favorable mortgage terms. Rates have hovered just under and just over 5% in recent weeks.
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Thank you for taking the time to review the market of the past year. If you would like more specific information about the market in your town, your neighborhood, or your specific price range, please don't hesitate to phone or email me to request it. I am fortunate to have the data at my fingertips, thanks to my company's foresight in ensuring that LMSRE is equipped with the most up-to-date resources for real estate information and data research. It is my pleasure to be your source for real estate information.
Also, I'd like you to know, I research and write this newsletter myself ... I can't seem to resist returning to my roots as a writer and editor every now and then. If you think of a topic you'd like me to address, please feel free to suggest it.
Sincerely,
Eileen S. Townsend, REALTOR-Broker
Accredited Buyer Representative (ABR)
Certified Residential Specialist (CRS)
Lang * McLaughry * Spera Office: 802-846-7861 Cell: 802-734-6937
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