Image credit: orangevt.org
Bright Indicators in Supply/Demand Remains Strong/"The Vermont Bump"
As the leaves and flowers begin to cautiously appear with spring's true arrival so do signs of activity in The Vermont Real Estate Market. New Listings available in Greater Burlington came to a screeching halt following the global pandemic caused by COVID-19 and the Stay Home order that ensued. This dwindling supply came on the heels of several years of low levels of inventory. Happily for home buyers, more homes have started to appear allowing for a for some availability. Competition for new listings continues to be quite fierce as mortgage rates remain at historical lows and pent-up demand is finally able to be released. National markets are showing similar trends. According to Forbes "Realtor.com recorded a decrease of 29% [in new listings year over year] for the week ending May 9th".
While mortgage rates remain strong there's been indications of banks tightening up requirements in the form of higher credit scores and greater cash reserves from potential borrowers. The long-term impacts of drastic unemployment figures remain uncertain. It's currently a strong sellers market in our localized area, but it's impossible to say if and how long to continue. If you're considering selling now may be the time.
Entirely anecdotal, but my team and I have seen a massive influx of potential out of state buyers inquiring about Vermont real estate. In conversations it appears that most of these folks are from denser urban areas and are seeking more open space with great quality of life. Many people can now work from anywhere and Vermont presents an appealing option for those currently in Greater New York City and Boston markets with relatively affordable prices and close proximity by plane for visits back to employer headquarters.
Each day is bringing new surprises. One constant is the tireless sacrifice and professionalism shown by our essential workers and first responders. Thank you for keeping us fed, safe, and healthy. I wish all of you health, happiness and solidarity during these trying times.Together, we'll make it through.
The Condo Guy Team