The local economy continues to be healthy, lifted by hiring at employers including Dealer.com and University of Vermont, while industries such as healthcare, technology, and education remain vibrant. Dozens of technology start-ups are hiring and attracting mid-career professionals from out of state, as well as hiring graduates from local colleges such as Champlain College and UVM.

The unemployment rate in Vermont stood at 3.7 percent in November, one of the lowest in the country. Our region’s jobless rate was even lower, with Chittenden County’s unemployment rate reaching a 15-year low of 2.5 percent during the same month.

Millennials are entering the property market, with that generation on track to become the country’s largest home-buying demographic within the next few years, according to real-estate data service Zillow. In Vermont, younger consumers are emerging as first-time buyers, thanks to record low interest rates and relatively high rents, which makes home-buying a more attractive alternative. A Coldwell Banker Hickok & Boardman Realty survey last year found 37% of our clients had just purchased their first home, close to historic rates of 40% for first time buyers.

While the Federal Reserve increased short-term interest rates in December, the central bank has signaled that future rate hikes will be incremental. Mortgage rates may reach between 4.7% to 5% by year-end, compared with below 4% currently, according to the National Association of Realtors. Mortgage rates remain historically low, and our Realtors haven’t noted any impact on housing demand from the Fed’s move.

Housing in the $250,000 to $350,000 range remains the sweet spot in our market, especially given the emergence of first-time millennial homebuyers. Property in the over-$500,000 range, however, can take longer to sell, and inventory in the upper ranges has been growing because of affordability issues. The luxury segment, or properties priced above $800,000, now has a three-year supply of inventory.

While the overall property market remains stable, there are a few issues that bear noting, including rising concern over affordability and property taxes. Vermont’s housing ranks among the most expensive in the country, but incomes in the state remain relatively low, creating a financial crunch for some buyers and property owners. Vermont also has one of the highest property tax burdens in the country, according to the Tax Foundation. Legislators are taking action intended to support quality outcomes for students and make costs more sustainable.

Homebuyers and property owners are advised to keep an eye on Act 46, the education governance reform law passed last year that calls for larger school districts. That could impact some towns in our region, such as Essex, Essex Junction and Westford, which late last year voted to consolidate into one school district. It is important for homebuyers to reach out to school administrators in the town they are considering with any questions. We find public and private schools have always welcomed conversations with perspective families considering a move to the area.

The National Association of Realtors forecasts a median price increase of 4% to 5% and existing home sales rising 1% to 2% in 2016.

Locally, Coldwell Banker Hickok & Boardman Realty is forecasting continued steady growth in pricing and sales for 2016, after last year’s 12% gain in residential transactions and 3.4% boost to the region’s median sale price.

As for sellers preparing their home for sale, Coldwell Banker Hickok & Boardman Realty recommends taking care of deferred maintenance issues prior to listing. Also, consider installing new “smart home” technology. These devices are relatively affordable, and consumers are increasingly embracing the technology, according to a joint survey from Coldwell Banker and technology site CNET. On top of that, smart devices such as Nest’s thermostat can help save money by conserving power and water, which will make your home even more appealing to buyers.

As always, it remains that both sellers and buyers need to reflect on their personal situation. Utilizing the local knowledge within this report and the advice of your agent – you can make an informed decision about your next move.

As the fall months arrive, Northwest Vermont’s property market is continuing to witness healthy real estate demand.

With the local economy continuing to grow and interest rates remaining at historically low levels, buyers are returning to the market, including an influx of first-time homebuyers. That has lifted residential home prices between 2% to 3% so far in 2015, which is representative of the type of healthy sales gains that were typical before the recession.

The region’s employment outlook remains healthy, thanks to hiring by local businesses such as Dealer.com and the University of Vermont. In August, the unemployment rate in Vermont stood at 3.6%, one of the lowest in the country. Economists at the Vermont Economic Outlook conference have forecast that 1,500 new jobs will be created in the state this year.

Those trends are bringing first-time homebuyers back into our market, especially as younger professionals seek to gain a foothold in the property market. The millennial generation, which now stands as the largest generational group in America, is expected to become the country’s biggest home buying demographic within the next five years, according to real-estate data service Zillow.

In the Northwest Vermont market, our agents are already seeing younger first-time homebuyers enter the market. A survey earlier this year of Coldwell Banker Hickok & Boardman Realty clients found that 37% had just purchased their first home, which is approaching typical levels of 40% of the market. On a national basis, the percentage of first-time homebuyers stood at 33% last year.

Economists now consider it less likely that the Federal Reserve will start raising interest rates this year, following a disappointing national jobs report in October. If the Fed opts out of boosting rates, it’s likely that mortgage rates will remain near historic lows for several more months.

Despite the solid outlook for our region, the property market is facing a few problematic issues, including affordability and rising property taxes. Residential property in the region remains expensive compared with wages, and increases in taxes have added to buyers’ concerns.

Despite those headwinds, Coldwell Banker Hickok & Boardman Realty is forecasting continued incremental growth in housing prices and steady demand for the remainder of 2015 and into 2016. For the first nine months of this year, the median sale price for residential property increased 2.9%, while the number of unit sales jumped 13.7%. That marks an improvement over 2014, when unit sales and pricing was little changed.

As always, it remains that both sellers and buyers need to reflect on their personal situation. It is increasingly important that you utilize the local knowledge within this report and the advice of your agent – to make an informed decision about your next move.

Coldwell Banker Hickok & Boardman Realty is forecasting continued incremental growth in housing prices and steady demand for the remainder of 2015 and into 2016.

The resurgent Northwest Vermont real estate market continued to demonstrate healthy pricing and demand during the third quarter, after a strong spring and early summer. Sales jumped 13.7% during the first nine months of 2015, with each of the region’s four counties recording more residential transactions than a year earlier. Across the four counties tracked in this report, the median sale price rose 2.9%.