Addison County Market Update

2009 proved to be a year of ups and downs. The Vermont real estate market struggled during the 1st half of the year, posting declines in sales of nearly 30%. With the passage in Congress of the Economic Stimulus Package in February 2009, qualifying first time buyers were provided an incentive to purchase and receive up to an $8000 tax credit, activity picked up and our local market began to turn around. Sales increased during the 2nd half of the year -
with first time buyers comprising nearly 50% of all real estate sales up from 35% in previous years. In spite of the surge in sales between August and November, total sales
in Addison County were down over 11% for the year by units sales with the average sale price dropping 12.5% across the board. In addition sluggishness in the market was reflected in an increase in days on the market of over 34%.

In November, Congress voted to extend and expand the tax credit in an effort to sustain the recovery of the housing market and therefore the economy. As a result of this extension, we expect an early and strong Spring Real Estate Market. Properties must be under contract by April 30th and meet a June 30th closing deadline. Now is the time for buyers to look for homes and for sellers to put their homes on the market. After April 30th - there may be fewer buyers motivated to purchase. In addition, economists are predicting a slight increase in mortgage rates for the second half of 2010. Those two conditions may exclude some buyers from the market as it will, at a minimum, reduce their buying power. The expansion of the tax credit to existing homeowners is an opportunity that many should take advantage of. If you have owned your primary residence for 5 consecutive years of the last 8 years - and you purchase a new primary residence by April 30th (with a closing date on or before June 30th) - you may qualify for up to a $6500 credit on your 2009 or 2010 tax return; individuals with incomes as high as $145,000 or couples with income as high as $245,000 may qualify.

Understanding the market and choosing a Real Estate Company and Agent with proven results in a difficult market is crucial. Coldwell Banker Hickok & Boardman Realty worked with more sellers and buyers in 2009 than any other real estate office in the entire state of Vermont, according to the Vermont Real Estate Information Network (VREIN). If you have any questions about this data or the tax credits - or would like to talk about your specific neighborhood - please don't hesitate to contact me - Chris