There has been a resurgence of the housing market in the past few months as reported in the Reformer on August 21, but the Southern Vermont Board of REALTORS®, which represents the full body of licensed REALTORS® in the region, gives us a more in-depth view of the current market evaluation. Home buyers question if prices are going to drop more while sellers wonder if their house is priced effectively to sell in a market some compare to a roller-coaster ride. Other homeowners wonder if the new tax assessment will be a fair evaluation of the current market.
The Southern Vermont Board of Realtors®, which is part of the National Association of Realtors®, aids and assists Realtors® in this region by keeping them current on the latest news, laws and events that affect homeownership and the local real estate industry.
John McPherson a Director of SVBR and REALTOR with Berkley and Veller Greenwood Country, explains that “some properties that are well-located and well-maintained, will sell at the same price as they did at the market peak, while other properties will require an updating or a lower price to sell in this shifting market. There has definitely been an increase in sales of less expensive properties due to the drop of average prices though that trend cannot be applied to every property.”
Troy Richardson, a State Director of SVBR and broker with RE/MAX Maple Leaf Realty in Bennington, commented “There is so much on the market right now that buyers are taking more time than before to buy and are even holding out for their “dream house” thinking more will come on the market, whereas in the past, I could have shown someone all the properties in their range in southern Vermont over 1-2 days and people made choices quicker because there wasn’t as much available. The majority of the homes are priced appropriately, but buyers are taking much longer to choose because of the variables in the market. The incentives to buy are definitely there.”
Dart Everett, appraiser and owner of Everett Real Estate Services, Inc. of Brattleboro revealed his amazement at how often the comparables are not on the market very long. “It appears that the market is stable, but without confidence.” Everett adds further “Appraisers look at the fact that of the 30 sales and resales in the last 4-5 years, there have only been 1 or 2 homes that have sold for less than before, while a good number of them have sold for more than even during the peak. We are certainly doing more appraisals for refinancing than for sales, but with interest rates as low as they’ve been, it’s to be expected. It’s true that prices in some of the larger Dover and Stratton condominium projects have decreased, but basically, we’re standing pretty good.”
Todd Brown, an appraiser and owner of Todd Brown Real Estate Services, agrees, “That most of the appraisals during January through June were for refinances, but that appraisals for purchases have increased in the last couple of months.” Brown added, “I’ve seen about 95% of the sales go through within 5% of the listed price.”
Barb Yanke of Chittenden Bank offers, “We have found that more and more borrowers are getting pre-approved for mortgages and looking for properties to buy. The challenge has been finding homes that are within the home buyers’ budget, that do not require a lot of work. However, in recent weeks the number of pre-approvals turning into contracts has increased. This includes Windham County and Cheshire County.”
Yanke adds, “There is still plenty of money available to buyers. Even with as little as 0% down in the affordable housing programs. There has been a lot of press about the banks not having money to lend or that it is not easy to get a mortgage, but the bottom line is if you are a qualified buyer there is plenty of money to borrow. It is the Stated income/No income/No asset and sub-prime loan programs that have gone away. We have returned to the 4 C's of lending. "C"redit how the borrower has repaid their debts, "C"ollateral the property itself, "C"apacity can the borrower afford the mortgage and "C"apital do they have any down payment or reserves.”
Brattleboro Town Lister Al Jerard says, “Our statistics support the trend of more sales in the last three-four months and almost all of them fall about 15% above the 2005 assessed value.” Jerard did report that there were three foreclosures in Brattleboro scheduled this past month and one went into bankruptcy rather than foreclosure, so that is an increase from before. Our target date for the new grand list is April, 2010 and homeowners will be receiving a notice in May or June.”
Bennington Chief Assessor supports that trend citing “There has not been a lot of activity, but with sales numbers down, the market values have been holding with the majority of sales shown to be above assessed values. Bennington’s reappraisal assessments occurred in 2005-2007 and we have not had any significant numbers of foreclosures or grievances.”
John McPherson adds. “If there is one message that homeowners and homebuyers need to hear, it’s that real estate is now affordable again. Home values have found that sensible balance between supply and demand where sellers don’t need to fear selling at too low a price, and buyers don’t need to fear buying at too high a price. The market is now rational.”
The Southern Vermont Board of REALTORS® has a directory with contact information of all licensed REALTORS® in southern Vermont on www.svtrealtors.com or you may call 802-464-3344.