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Tuesday April 22, 2008 Edition
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Local Real Estate Market Not Reflective Of National Trends

Tuesday April 22, 2008

By Rebecca F. Kay

   Watching the national news or reading the national headlines would convince anyone that the real estate market is in a recession.  However, despite national headlines, local realtors remain optimistic that the Addison County residential real estate market is strong and will improve throughout 2008.

    The first quarter 2008 closed with thirty-two residential sales in Addison County as reported by the Multiple List Services (MLS).  MLS provides data to realtors of what property has been sold, days on the market, list price, and sale price.  MLS does not report private sales.  

    Here are the average results for the first quarter of 2008 (these results exclude two sales exceeding $1,000,000 and one sale that was limited to land only):

1st Qtr sale of Residential HomesAverage Days on MarketAverage List Price
29173228,241
Average Sale PriceAverage Price/List %
213,19093%

      Coldwell Banker Bill Beck Real Estate reports in its “Market Update” that this is a 24% decline from the first quarter in 2007.  The report explains that the drop in sales from 2007 to 2008 does not mean that property values are decreasing in Addison County.  “This is a reflection of the activity levels in the lower priced homes.  Of the houses that were sold in the first quarter only three were over $300,000.”

    Additionally Bonnie Gridley, CRS of ReMax points out that the 2007 home sales were the fifth best in history.  “January 2008 felt the slump of the increased interest rate in late 2007.  Since the drop of the interest rate in February of 2008, the sale of residential property has increased.”   

    Bonnie Gridley believes the lower interest rate will also attract more buyers to sell their current homes and trade-up. “This year is going to be a good trade-up market” Bonnie proudly states. Bonnie explains homeowners trade-up if two criteria are met.  First they must sell their current property at a profit.  Second, the interest rate on the new mortgage must be less than the interest rate on their previous mortgage.  Because interest rates have dropped, it will be possible for more homeowners to trade-up.

    Local realtors are concerned about the grim outlook the national news is painting of the local residential market.  Bonnie Gridley asserts “The national press is exaggerating the recession with housing.  It is true and is happening in Florida, Arizona and California, but not up here in Vermont.”  According to Nancy Ryan of Associates in Lake and Mountain Properties in Vergennes, “Having been in real estate for [twenty-two] years I have seen the highs and lows of the market but it seems that Vermont does not see the extremes that other parts of the country do.”

    Coleen Beck, CRS of Coldwell Banker Bill Beck Real Estate, states “the media is negative. People should be looking to buy.  The interest rate is good.”  She also explains “First quarter residential sales have been in the $200,000-$300,000 [range].  Now that the weather is improving there is a lot of interest and activity in the $300-$400,000 market.”

    Nancy Larrow, CRS of Associates in Lake and Mountain Properties explains, “Buyers are confused by the national news.  Buyers are looking for bottom dollar deals and …sellers are not taking these offers.” Larrow also explains “sellers are being realistic in their pricing and are realizing that pricing is crucial.”  

    Despite the first quarter results, local realtors remain busy and look forward to the second and third quarters, where sales typically increase.  Also Bonnie Gridley adds, “I've been in real estate for twenty-two years, and every election year is a good year for sales.”


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