After several months blogging about the Vermont towns that I know and love and after a reminder about how important your own life should be as we enter 2012 – well, it’s time to get back to business! Let’s talk about real estate.
It will come as no surprise to anyone that it wasn’t a breakout year in 2011 for residential real estate sales. In my opinion however, there was slight improvement. While the percentage increase in residential home, condo sales and second home buyers vary from county to county and town to town, the real estate market has been positively affected by the following:
- Interest rates are at a historic record low.
- Baby Boomers are nearing retirement and have the ability to snap up high end properties at lower than usual prices.
- Some people who watch the real estate market feel we won’t see further drops in value.
- Some buyers who have been on the side-lines for the past several years are ready to re-enter the market.
This does not mean that we will all enjoy easy and quick real estate transactions. Clients will be cautious, as they should be. Many home prices remain depressed and are well below their replacement value that it would take to build a new home – which is not necessarily good for builders – but good for qualified home buyers. There are great buys to be had out there and with interest rates where they are right now, the average person still has a great opportunity to own the “American Dream”.
Due to the financial hardships that many of the American people have endured in recent history and the country’s Financial Institution’s past lending policies – in my opinion a good credit score and adequate down payment are most important for your future real estate transactions. There are programs out there for first-time home buyers who qualify so if you are in the market to buy a home, it would be foolish not to look into it now.
I’m happy to live in Vermont in a 4-season resort area. I believe we will remain a strong second-home market and also a destination supported by our local tourism based partners who continue to focus on that economy and add to their year-round amenities. If you’ve been thinking about buying property in this area – well, now is the time to do so!
Until next time, Irene
For all your real estate needs in South Central Vermont, contact me at: