This is the year to buy in Vermont.
Steady, modest, but growing—that is the economic forecast for 2012. Mortgage interest rates are as low as we have ever seen them. Rates are predicted to stay low through 2012 and then begin to rise in 2013.
Prices have held steady in 2011, with the MLS average price for a single-family home in Chittenden County decreasing slightly from $315,797 to $313,495. The number of single-family homes closed in 2011 was 862, up 4 units from 2010. It is a similar story for Chittenden County condos, with 425 closed in 2011, down 5 units from 2010. So why is this the year to buy? The answer is the historically low interest rates and low prices—and inventory is declining! Chittenden County has only a 7- to 8-month supply, down from 10- to 11-month in 2010, and we saw a 4% decrease in new listings in 2011.
2011 in Review – Average Single-Family Home Prices by County*
| County | Average price | Change from 2010 |
| Addison | $283,489 | up 19.8% |
| Chittenden | $313,336 | down 0.8% |
| Franklin | $188,268 | down 2.5% |
| Grand Isle | $277,962 | up 13.3% |
| Lamoille | $365,952 | up 9.3% |
* Statistics per NNEREN
The highest average sale prices were recorded in Charlotte (at $535,764), Shelburne (at $501,026), and South Hero (at $492,369) due to the impact of high-end and lakefront sales. The median price of homes was flat in South Burlington and rose in Burlington, Essex, Hinesburg, Huntington, Jericho, Milton, and Shelburne. Median prices fell in Bolton, Charlotte, Colchester, Richmond, St George, Underhill, Westford, Williston, and Winooski.
We are seeing shortages of inventory in some towns. Lakefront properties are being snapped up as prices have adjusted from the peak. The luxury market, over $1 million, has seen an 18% increase in sales from 2010. Land and new construction are improving with new home start-ups increasing slightly over last year. It is also interesting to note that rental rates are increasing and vacancies are declining, making this a great time to buy investment real estate.
Art Woolf, of the Vermont Economic Outlook Conference, has a great outlook for 2012. He said that home prices have moderated to such a great extent that, coupled with low interest rates, homes are at their most affordable since 1987!
Here at the Nancy Jenkins Team, we look forward to a great year helping you achieve your real estate goals. If this is your year for a move we are here to help you, your family, co-workers, and friends. Give us a call or visit us at www.nancyjenkins.com to search for your new home!
We enjoy all that our state has to offer throughout the seasons— skiing, riding, hiking, biking, boating, and swimming. What an amazing place we have the privilege to call home.
Our best wishes for a safe, happy, and prosperous 2012.
