Welcome

Just 3 months ago, in our Mid-Year 2020 market report, we provided data on the effect that the coronavirus had on real estate in northwest Vermont. The market had heated up after a pause due to the statewide shutdown. Low inventory, low interest rates and pent up demand pushed median prices higher year over year. The height of the real estate market – typically spring – had been pushed into summer. What we could not predict was the sustained demand for Vermont real estate that surged through the 3rd quarter of 2020, showing little sign of letting up.

Single-Family January-September 2020
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$322,500 +5.7%	$368,630 +6%	1,815 -2.8%	2,335 -15%	75 +2.7%

Condo January-September 2020
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$259,950 +6.2%	$282,962 +2.6%	590 +4.8%	670 +2.1%	55 -19.1%

In a recent article in Forbes, George Ratiu, Senior Economist at Realtor.com is quoted “Real estate markets have undergone noticeable shifts since the start of the coronavirus pandemic, in the wake of the lockdowns in March, Americans discovered that existing homes were not adequate for the new work, teach, exercise, cook and live at home reality. Based on realtor.com surveys of consumers, we learned that home shoppers are looking for more space, quieter neighborhoods, home offices, newer kitchens and access to the outdoors, traits which have revived a strong interest in the suburbs and smaller metro areas.” This, coupled with accolades for Vermont’s handling of the virus – quickly flattening the initial wave and slowly opening the economy in a safe way, has contributed to the continued demand in our region.

Our website, HickokandBoardman.com, has seen a 27% increase in users and pageviews year over year. In-state visits to the site increased by 23% while out-of-state visits were up 33%. New York, New Jersey New England states, and California topped the list for out of state visitors searching for Vermont property.

The luxury market (defined for this report as residential property above $850,000) has benefited substantially. In search of a “second primary home,” buyers from out of state – most with ties to Vermont – are snapping up larger homes with amenities that meet their desire for space and a sense of safety. Newly listed homes in this category increased 36%, offering a variety of options for those looking for a lifestyle change.

Nationally, the median price of existing homes pushed to a record high of $310,600 – up 11.4% annually. Locally, the median price has increased nearly 6% to $322,500 for a single-family home. These prices vary by county and town, so it is important to consult with our Realtors for data in your specific area.

In August, mortgage rates set several record lows, which added to the fierce competition for housing. Low rates give buyers additional purchasing power while sellers benefit from increased equity positions in their homes. A “seller’s market” continues, as buyers are often challenged by the reality of multiple offers. Being well prepared, pre-approved and working with a Realtor experienced in navigating the intricacies of crafting purchase offers in this unprecedented market is critical for buyers wanting to achieve their dream of home ownership this year.

Despite the calendar pointing us in the direction of winter, and what used to be a slower period for real estate transactions, Sellers should view this as an extended spring/summer market. Get your home on the market and keep it on the market through the winter and “holiday season.” Virtual showings and video enable buyers to view your home at their convenience. And, COVID guidelines reduce the number of people actually entering your home. Yet, the number of serious buyers in the market remains strong. With guidance from your Realtor, you should be able to negotiate a contract with price and terms that meet your needs still allowing you time to enjoy the holidays with family and plan a move for early 2021.

Single Family
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$296,500 +2.4%	$338,089 +4.2%	374 +6%	529 -12.3%	99 +8.8%

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$257,600 +8.5%	$283,475 +10.4%	144 +26.3%	184 +19.5%	67 -14.1%

We cannot comment on the 1st quarter results without reflecting on the Coronavirus pandemic that arrived in the midst of it and will continue to impact us for the remainder of 2020. During the recent weeks, we have been reminded about the role HOME plays in our lives. We thank our state officials, health care providers, and all essential workers for the sacrifices and difficult decisions they continue to make to keep our community safe. 

Residential real estate transactions have a longer lead time than most consumer purchases. These transactions close, on average, 45-60 days from the time of contract. Therefore, results in this 1st quarter market report – with sales closed by March 31st – reflect business efforts from the 4th quarter of 2019 through January of this year.

The current public health crisis we find ourselves in is already resulting in an economic crisis. As the residual impact of COVID-19 begins to plateau, the question we are being asked is “what will the impact be on the real estate market?” We don’t have a crystal ball, however, John Burns Real Estate Consulting noted, “Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices) …. the current slowdown is playing out similarly thus far.” As of April 1, 2020, three of the major financial institutions, including Goldman Sachs are calling for a V type recovery. They do reserve the option to change that prediction as things proceed.

The Great Recession of 2008 was driven largely by the housing sector. This is not the case today. In fact, the leading indicators regarding housing were sound at the onset of this necessary pause. Nationally, inventory levels were at a 3-month supply (vs. 8-month supply in 2007); most economists believe a 6-month supply is a balanced market. We have been in a sellers’ market for some time. Price appreciation has been steady and moderate. In addition, the equity position for most home owners is strong.

We cannot predict how long we will be sheltering in place or how deep the impact will be prior to working our way out of this. We do believe that this time, housing is poised to be part of the solution.

“Housing is a foundational element of every person’s well-being. And with nearly a fifth of US gross domestic product rooted in housing-related expenditures, it is also critical to the well-being of our broader economy,” as recently noted by Chris Herbert of the Joint Center for Housing Studies at Harvard University. The fact that the Vermont housing sector enters this current recession underbuilt rather than overbuilt, coupled with continued historic low interest rates, positions housing to help lead our way out of this when the time comes.

In Northwest Vermont, the real estate market during the 1st quarter of 2020 was strong. The number of properties listed for sale continued to increase after years of decline. Buyer demand was strong amidst low interest rates and median prices were steadily growing. Governor Phil Scott issued a Stay At Home order on March 25th which effectively put the brakes on real estate services. Purchase contracts already in process faced some hurdles getting to closing. With safety and public health as a priority, attorneys and lenders adjusted their customary practices and closed real estate sales without parties present – via Power of Attorney. Buyers and Sellers in newer contracts, that had not worked through contingencies such as property inspections, have extended those contract deadlines when possible.

As of April 20th, the Governor is allowing limited in-person activities of no more than two people. Many buyers we have surveyed are remaining in the market. Detailed property photographs and video enable savvy buyers to make offers subject to inspections at such a time that is deemed safe. Our agents are advising clients to work with a local lender for an up to date mortgage pre-approval.

Sellers are using the time at home to prepare for market. Our Marketing Team is working closely with sellers to produce videos and strategically position their homes for optimal viewing by buyers. Our website, HickokandBoardman.com, has been visited by potential buyers across the country- notably from states effected early on by COVID-19. Vermont has long been considered a healthy and safe place to live. Particularly in the aftermath of a crisis, such as the events of 9/11, many residents of larger cities looked to Vermont to begin the next chapter in their lives. Recently, Conde Nast Traveler announced the 2019 Readers’ Choice Awards for the Friendliest Cities in the U.S., ranking Burlington 8th in the country – the only northern city on the list.

While working from home and conducting meetings via apps like Zoom may be new for many, our Agents have been effectively working remotely for several years. From using technology to share and sign contracts, to conducting showings and consultations via Facetime with out-of-state clients – we are well positioned to best serve our clients.

Never more than now, do we appreciate what HOME means to all of us. Stay safe and hold your family and friends close. We appreciate the relationships we share with all of you and together we will work to keep #VermontStrong.

We are All in this Together

Single Family
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$303,500 +3.6%	$345,361 +6.1%	2,530 +11.3%	3248 +4.9%	73 -16.1%

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$245,000 +6.5%	$276,300 +6.4%	756 -0.1%	835 -6.9%	65 -7.1%

Last year at this time, we provided our recap of 2018 and projections for 2019 based upon analyst predictions for the national and local real estate market. Limited inventory of homes for sale remained the top story. The stock market was volatile; a government shut down impacted the economy and housing market for a short time; mortgage interest rates were projected to reach 5.25% by the end of 2019; and there was talk of a looming recession. Despite those predictions, 2019 was a strong year for real estate. 

While the supply of homes coming on the market remained lower than buyer demand, many parts of our region reflected an increase in inventory. The median sale price grew, enticing home owners to sell in order to maximize their equity. Interest rates dropped in 2019 by .75-1.0% points and will remain low in 2020 – likely somewhere between 3.7% and 3.9%.

With low mortgage rates, low unemployment, and continued wage growth, home buyer activity is expected to remain healthy in 2020.

Millennials, many saddled with heavy student loan debt, have made their mark on the real estate market after many years on the sidelines. At the start of 2019, Millennials accounted for 45% of home buyers. This group is expected to dominate the market again in 2020. Realtor.com expects millennials to make more than 50% of all home purchases in 2020. As home prices increase, Millennials look toward more affordable places to put down roots – namely smaller locales on the outskirts of cities and towns. This has led to the term “hipsturbia communities” – live-work-play communities. Vergennes and Bristol in Addison County & Winooski, Jericho and Hinesburg in Chittenden County are examples of towns with healthy increases in homes sold – perhaps as result of Millennials buyers entering the market.

Baby Boomers, on the other end of the housing spectrum, are staying in their homes longer than ever; 10-13 years on average vs 7 years, historically. These home owners are willing to sell their large family homes but are having trouble finding new home that are right-sized, with easy maintenance so that they can enjoy the lifestyle they have worked so hard to achieve. Their large, family homes may not appeal to energy conscious Millennials also seeking life balance.

New construction projects play a key role in easing the inventory shortage, delivering homes that today’s buyers are looking for and stabilizing pricing. Builders face challenges in land, permit and materials cost as well as shortages in labor which puts the price of new homes in the area well above $400,000. Some communities are challenging new developments, with neighbors raising concerns about the loss of green space and wildlife habitats. The quality of life that draws people to Vermont needs to be carefully balanced with the cost of living in our beautiful state.

2020 will remain a seller’s market in most of the region, with a true buyer’s market not on the immediate horizon. Multiple offers on homes priced near the median for the market and located in sought after towns will continue through the year; however, conditions are favorable for real estate.

Buyers and sellers alike should have these best practices in mind: identify your wants and needs, learn about the market, form reasonable expectations, perform your due diligence, and be prepared to act – with the assistance of a skilled and trusted Realtor.

	Median Sale Price	Average Sale Price	Units Sold	Newly Listed	Days on Market
Single-Family	$305,000 (5.2%)	$347,505 (7.9%)	1860 (7.6%)	2744 (3.4%)	73 (-18%)
Condos	$244,815 (8.7%)	$276,114 (7.9%)	559 (-1.2%)	654 (-12.8%)	68 (-2.9%)
Multi-Family	$320,000 (6.3%)	$384,624 (-6.2%)	101 (-22.9%)	191 (12.4%)	70 (-26.3%)
Land	$100,000 (22.0%)	$134,793 (4.4%)	147 (-2.7%)	379 (-1.6)	290 (16.9%)

Welcome to fall in northwest Vermont, and to our Fall 2019 Market Report through the 3rd quarter (Q3), January – September 2019.

Each quarter, we combine the Multiple Listing Service (MLS) data with the expertise of our Agents to offer a recap of real estate activity and trends in the 4 counties of northwest Vermont: Addison, Chittenden, Franklin and Grand Isle.

Traditionally, the “height of the market” is the 3rd quarter, late spring through summer; however, we have seen this heightened activity continue into fall in recent years. While the ongoing story in the national and regional market has been the contraction of inventory for sale, we did see some relief during the 3rd quarter, with new properties coming on the market increasing slightly over last year. This resulted in an increase in single-family home sales. Still buyer demand exceeds supply – pushing median and average sale prices higher.

With interest rates lower than last year, sellers and buyers would be wise to stay in the market during the 4th quarter of 2019 and 1st quarter of 2020, while properties are still in demand and at their most affordable.

Our skilled REALTORS® can help you with more specific price points in certain cities and towns. Given our market leading position, we are committed to providing unparalleled service and results for our clients.

Single Family
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$300,000 (+5.3%)	$343,918 (+9.5%)	1006 (+1.3%)	1743 (+.8%)	81 (-18.2%)

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$239,950 (+9.3%)	$268,129 (+5.7%)	330 (-7.6%)	415 (-18.8%)	80 (+11.1%)

The mid-year point is an important milestone for real estate trends, especially in northwest Vermont. We are in the midst of the traditional “height of the market.” Closings on real estate sales surge in June, July, and August in between the school year, vacations, holidays and other life events that typically drive the market. In addition to single family and condominium sales – this report looks at results and trends in luxury & multi-family sales – as well as land sales throughout the region.

Low inventory continues to be the story in the national and local housing market. Properties coming on the market have been in short supply for a few years resulting in less sales, while demand remains strong. Steadfast price growth for homes in northwest Vermont is good news for sellers but has challenged some buyers trying to get into the market. Competition for properties under $400,000 may not let up for quite some time.

So far in 2019, first-time buyers only accounted for 31% of home sales – well below the historic market share of 40% according to the National Association of REALTORS. There remain several reasons first time buyers are struggling to get in the market: student debt, starter home inventory in short supply, and credit score requirements are tighter than historic norms.

Nationally & locally, new construction levels have failed to keep pace with population growth, shifting demographic preferences and the aging housing stock. Vermont has the second oldest housing stock in the country. Builders face challenges in land, permit and material costs, as well as shortages in labor. In some communities, neighbors are raising concerns about the loss of green space and wildlife habitats. Strong voices are needed for zoning and regulatory changes that many local governments are weighing as a way to increase housing density and improve affordability.

At a recent Burlington Housing Summit, the topic of Accessory Dwelling Units (ADU’s) added to existing homes was presented as an innovative way to tackle housing shortages. Fannie Mae is funding a pilot program in Denver to add ADU’s to low and middle income housing which will also generate extra income for homeowners. This type of infill housing helps support multi-generational living and allows aging homeowners to stay put longer since they can rent the ADU or primary residence to earn extra income and help with home maintenance. Zoning and permitting restrictions along with the cost of adding ADU’s needs to be considered if this to be a viable solution.

Homeowners are staying put longer. On average, homeowner tenure is 8-10 years vs. 5-7 years less than a decade ago. With rising home prices and tenure increasing, real estate wealth of homeowners is growing (total asset value minus outstanding mortgage). In many cases, the wealth held by older generations is transferring to first-time buyers. According to a recent NAR survey, first time savings counts (measured in 10 states) allowed “grandma” to make deposits, and 1/3 of first-time buyers had help from family members.

Throughout this report, you may see the terms “affordable or more affordable” used when describing a particular housing type or a particular city or town. Affordability is a relative term since Vermont – particularly northwest Vermont – is not, on average, as affordable as other parts of the country such as the midwest or south. The median price of homes in northwest Vermont, at $300,000, surpasses the national median price of $261,600. Coupled with high property taxes, the cost of living in Vermont may not be “affordable” for some. Having said that, for the purposes of this report we are comparing our markets and identifying properties and towns that may have a median price below other counties or the regional average.

Demographically, millennials have overtaken baby boomers as the largest US adult population – and they’re starting to buy homes. Statistically, they make up 45% of the home buying population. When the full buying potential of this population is realized – and the housing supply issue has been addressed, solid home sales growth should follow.

Buyers who are at a point in their life where they are ready and able to buy will find today’s prices coupled with low interest rates are an advantage over long term rentals.

	Median Sale Price	Average Sale Price	Units Sold	Newly Listed	Days on Market
Single-Family	$290,000 (5.1%)	$323,786 (10.3%)	353 (1.2%)	599 (2%)	91 (-22.2%)
Condos	$230,000 (12.2%)	$256,677 (6.2%)	113 (-6.6%)	151 (-16.6%)	77 (-6.1%)
Multi-Family	$315,000 (1.6%)	$377,274 (-19.4%)	23 (-41%)	57 (72.7%)	59 (-50.4%)
Land	$120,000 (42.5%)	$149,432 (-14.4%)	31 (-26.2%)	103 (4%)	288 (9.5%)

Historically, the first 3 months of the year represent the slowest period for sales. With a smaller number of sales, data within this report can be affected in a positive or negative direction without truly representing a trend in the market.

Our skilled Realtors® can provide you with a more in-depth analysis on specific price points in towns and neighborhoods. Given our market leading position, we are prepared to provide unparalleled service to our clients.

The same market dynamics that we have reported over the past 2-3 years continue to play out in northwest Vermont. Shrinking inventory of homes for sale and pent up buyer demand have resulted in an increase in median and average sale prices across most market segments. Mortgage interest rates have declined recently after an uptick during 2018, keeping buyers in the market and willing to pay more for updated homes. With limited cash available for renovations, buyers are willing to take on a higher mortgage payment for homes with renovated kitchens, bathrooms, flooring and other amenities. Sellers may want to take advantage of this opportune time to list their home while demand is strong.

Single Family
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$293,000 (+5.8%)	$325,542 (+3.3%)	2,275 (-0.8%)	3,098 (-2%)	87 (-12.1%)

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$230,000 (+1%)	$260,105 (+1.4%)	752 (+6.5%)	892 (+11.6%)	70 (-15.7%)

Our early 2019 Market Report provides a recap of real estate sales throughout the four counties in northwest Vermont: Addison, Chittenden, Franklin and Grand Isle. In addition to residential real estate sales, we look at results and trends in luxury & multi family home sales – as well as land sales throughout the region.

Low inventory continues to be the story in the local and national housing market. Properties coming on the market for sale have been in short supply for a few years resulting in fewer closed sales while demand remains strong. Steadfast price growth for single and multi-family homes in northwest Vermont is good news for sellers – and has challenged some first-time home buyers who were caught in multiple offer scenarios in certain hot price points and locations.

2018 was a volatile year for the stock markets – with the DOW, S&P 500 and Nasdaq all ending the year lower than they started – the first time that has happened since 2008. Having said that, the markets spent most of 2018 climbing rather than falling- with never before seen heights. While the markets ended down -the overall economy soared. The economic expansion has been driven for years by historically low interest rates. After a several adjustments in 2018, the federal reserve is less eager to raise rates at the same pace and has already trimmed its forecast for expected rate hikes in 2019. Most experts project an average of 5.25% by the end of this year. While interest rates have risen slightly– they are still relatively low. And consumer spending is thriving. These are indications of a healthy economy for 2019 – even if not at the same pace as before. The federal government shut down has impacted the economy as well as the housing market – with furloughed government employees unable to provide a recent pay stub in order to prove current employment to mortgage lenders resulting in delays or cancellation of some home purchases. The full effect remains to be seen.

The overall trend in home sales has been positive since 2011 on a national and local level. In some larger markets across the country markets have begun to slow however Vermont benefits from relative stability with moderate growth year over year. The National Association of REALTORS’ Chief Economist, Lawrence Yun, cites home price increases moderating in 2019. Tight inventory conditions remain an ongoing concern that will keep prices relatively elevated, but stable.

New construction projects may ease the shortage somewhat, but the need for affordable homes is not being met. Builders face challenges in land, permit and materials cost as well as shortages in labor which has been putting the price of new homes in the area well above $400,000. Some communities are challenging new developments, with neighbors raising concerns about the loss of green space and wildlife habitats. The quality of life that draws people to Vermont needs to be carefully balanced with the cost of living in our beautiful state.

Millennials make up to 45% of the home buyer market and affordability is a factor. Heavy student loan debt and changing interest rates affect purchase power. For a $300,000 loan – a 1% increase in interest rate equates to an additional $178 per month to the mortgage payment. Working with a local lender – with a common-sense approach to underwriting – will benefit purchasers navigating this market. With most home buyers purchasing property for lifestyle reasons, many are quick to recognize that buying a home is a way to build wealth in the long run.

2019 will remain a Seller’s market in most of the region, with a true “buyer’s market” not on the immediate horizon due to limited inventory, increasing prices and interest rates. Buyers should not stay away from the housing market especially if they are at point in their life where they are ready and able to buy. Buyers who have watched from the sideline and now fear missing out on their dream of home ownership – or risk facing higher finance costs to do so – should act now! They may face less competition early in the season and sellers may still realize a gain on their home sale. This should be a cue for potential sellers to enter the market early in 2019 – rather than waiting for the typical height of the market in the Spring.

Buyers and sellers alike should have these best practices in mind: identify your wants and needs, learn about the market, form reasonable expectations, perform your due diligence, and be prepared to act – with the assistance of a skilled and trusted Realtor.

 

	Median Sale Price	Average Sale Price	Units Sold	Newly Listed	Days on Market
Single-Family	$289,950 (5.4%)	$322,081 (3.5%)	1,726 (0.8%)	2,654 (-1.2%)	89 (-8.3%)
Condos	$226,000 (-1.3%)	$256,243 (-0.7%)	561 (7.7%)	744 (13.1%)	70 (-21.4%)

Leaves fall from the trees, boats come out of the lakes, and hunters head for the woods. Welcome to fall in northwest Vermont, and welcome to our Fall 2018 Market Report, January – September 2018.

Each quarter, we combine the Multiple Listing Service (MLS) data with the expertise of our agents to offer a recap of real estate activity and trends in the 4 counties of northwest Vermont: Addison, Chittenden, Franklin, and Grand Isle.

Our skilled REALTORS can help you with more specific price points in certain cities and towns. Given our market leading position, we are committed to providing unparalleled service to our clients.

The data through the end of the 3rd quarter is significant in that it includes closed sales for the busiest segment of the year. Traditionally, the “height of the market” is considered late spring through summer. The ongoing story in the national and regional market is the contraction of inventory for sale, so it is remarkable that closed sales through the 3rd quarter faired as well as they did. Closed sales of Single-Family homes remain flat across the region while sales of condos, land and multi-family properties show healthy increases over the same period last year. The median price of sold, single family homes continues to rise while prices of Multi-Family homes surged as investors clamor for properties in a tight market.

With mortgage interest rates increasing recently – and additional increases expected, sellers and buyers would be wise to stay in the market during the 4th quarter of 2018 and 1st quarter of 2019, while properties may be in the most demand and at their most affordable.

Single Family
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$224,000 (-3.0%)	$254,258 (-2.0%)	353 (+12.4%)	507 (+21.3%)	72 (-21.3%)

Condo
Median Sale Price:	Average Sale Price:	Units Sold:	Newly Listed:	Days on Market:
$227,500 (+3.4%)	$256,259 (+4.0%)	705 (-3.0%)	798 (-3.0%)	82 (+7.9%)

The Mid-Year point is an important milestone for real estate trends, especially in northwest Vermont. We are in the midst of the traditional “height of the market.” Closings on real estate sales surge in June, July, and August in between the school year, vacations, holidays – with new household formation and other life events that typically drive the market. Our Mid-Year report recaps the inventory and sales of property during the 1st six months – and provides a snapshot of trends we may see in the Fall of 2018.

The number of properties sold, across all categories including single family, condos, multi-family, land and luxury properties, in northwest Vermont increased over the 1st half of 2017. This positive trend reflects strong buyer demand and is a welcomed sign after a moderate, but long-term decline in unit sales. The median and average sale prices continued to rise for single family, multi-family and land sales. Single-family unit sales were up 2.1% over 2017 in the first half. Newly listed properties declined by 6.7%. While inventory levels are still at near record lows, the 2nd quarter showed some moderate improvement.

Condominiums remain a popular choice, often for ease of maintenance and affordability. Newly listed condominiums were up 21.3% year to date with 507 listings. This helped spur a 12.4% increase in sales in the first half of 2018. The median and average sale prices had slight declines at 3.0 and 2.0% respectively.

Days on market dropped to 99 days in the single-family market, down 4.8% from last year and condominiums declined by 21.3% to 72 days on market. Chittenden County is reflecting a 3 months supply on hand in single family and condominiums. A balanced market is considered 5-6 months supply.

Our Vermont market reflects the current national trend of low inventory levels. Lawrence Yun, Chief economist for the National Association of Realtors, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year across the country.

Rising mortgage rates are also a factor. “This year we saw a move up in mortgage rates, from 4 to 4.5%, which increased the urgency of some buyers to purchase. Combined with limited inventory, a tight rental market, and an uptick in economic activity, we saw increased competition in the first time home buyer/affordable price range. Even with credit standards loosening to encourage more activity these other factors are stretching the budgets of some prospective buyers. Mortgage industry experts say that providing credit is not the problem but rather the current supply of housing not meeting the demand,” says Ranjit “Buddy “ Singh of Spruce Mortgage in Burlington.

Our sales associates have seen continued strong buyer demand, especially in price segments below $350,000. Often these buyers are facing competing offers made on new listings resulting in purchases above asking price, waived inspections, substantial deposits or even cash sales. Some sellers are identifying new properties prior to committing their property to sale and making the successful next purchase a contingency of the sale of their existing property. Timing and coordination are key, and your Realtor can be of great assistance in a tight market.

New housing development in our region, although limited, is a very welcome addition to our market and has given some relief in a few market segments. We expect the current market conditions to continue throughout the 2nd half of 2018.