Sleeping Burlington Vt Market Stirred by Stimulus

Here is a bit of good news for buyers and sellers alike. The Stimulus Package was just signed into law last week and seems to be having an immediate effect here in the Burlington VT area. This impression is not based on any sound scientific study or empirical data, so take it for what it is worth. It is based on a "boots on the ground" observation I made over this past weekend. Here is the story.
I am helping a family relocate here from out of state and they had a schedule that required us to be out seeing all we could see yesterday, Sunday. I had attempted to make an appointment at one particular property, along with several others, and we were asked if we could come by during the Open House from 1-2pm rather than disturb the occupants in the morning of the same day. With a little bit of re-schedule we were easily able to accommodate the request and agreed amongst ourselves to see it at 1:30pm.
I arrived a little early and thought I would pop in and get a quick preview as I had only seen the home on the Internet. As I approached the house I observed cars lining the street and one in the driveway that was not the Realtor's car who was holding the Open House. Car count was four at 1:30pm. I parked on the street and went in too take a look. As I was entering , two parties left. I dropped my shoes at the door and began to look around. In the next 15 minutes four more parties showed up and then the family I am working with. Counting my clients, there were eight showings of this one home in the first hour of the Open House.
This home was built in the late 1960's but has been well maintained with new paint and carpet and other improvements. It is not a foreclosure nor is it owned by a relocation company or being offered in a short sale. All of these issues might be the cause of a high traffic count but this was not the case in this situation. This house has been on the market since last August so it was also not new to the market. The REALTOR holding the Open House was overwhelmed since she had been holding Open Houses since the beginning of the year in similar homes and always brought other work to do as she as she sat there with no viewings.
Maybe this is an isolated case or the Denny's at the foot of the street was offering free Grand Slam Breakfasts for all attendees. What ever the case, the renewed interest in buying real estate by those viewing this house felt invigorated and fresh. So if you are selling your current home , take heart as there appears to be the beginning of a Spring real estate market taking shape.
If you are a buyer and you have been sitting on the sidelines waiting for all the stars to line up, this could be it. The pricing has adjusted, sellers are motivated and want to get on with their lives. The interest rates are hovering just below 6% and I have heard of some 5% quotes to buyers from some lenders, depending on credit scores. The inventory in and around Burlington that is affordable priced is low and once these looking buyers act, it will not last long. The good news is if the sellers who have been sitting on the sidelines, sense that they may get a fair price on their home this Spring , you will see more inventory enter the market and replace the homes that are purchased.
What this market needs is some active and motivated buyers who are well positioned to get off the fence and get this market moving again.

Stimulates the First Time Homebuyer but You Have to Buy to Win!!!

I was sent this this morning from our in house mortgage loan originator. I thought it might add some clarity for the first time home buyer.
Enjoy!!

Chris

By Les Christie, CNNMoney.com staff writerFebruary 16, 2009: 5:38 PM ETNEW YORK (CNNMoney.com) --
There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
Not exactly. Billings won't get $8,000 on top of his current refund, but he would turn that small refund into a much larger one. If his total tax liability came to $6,000, but he had $7,000 withheld from his payroll, he would normally receive a $1,000 refund. With this credit, his refund would total $8,000. If the credit were non-refundable, as was originally proposed in the Senate version of the stimulus package, he would have only received $6,000, or the total amount he paid in.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
Instead, many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.

Historic Colonial with Studio/Workshop

This stately home was purchased nine years ago and lovingly painted, repaired and rejuvenated form top to bottom all the while retaining the original charm. Most of the woodwork has been brought back to it's original condition or replaced with perfectly matched new wood. The exterior porches have all been re-built and the slate roof has been repaired as needed. All of the interior surfaces have been painted in period colors and the exterior is a classic yellow, with cream trim and dark green windows and mutton's.

In short, all the work has been done and it is now ready for you to enjoy. If you an old home lover , this home will really catch your attention, as it has all the positive qualities of a center hall colonial of that era, large center hall with stairway, large four square floor plan, large windows, wide pine floors and understated, but classic, window and door trim details. Speaking of doors, the interior six panel doors in on the two front rooms are a full 36" wide, something I have never seen in any other home of it's kind.

Some people have questioned my classification of the house as a center hall colonial due to the Italianate Exterior roof trim and the hip roof design. The answer for that is that around the turn of the century , this house was on a different part of this two acre lot, and for some reason , it was moved one winter over the hard frozen ground by a team of oxen and placed on it's current foundation. I believe at that time, the roof was replaced with the current hip roof and the Italianate features added along with the porches and most likely the attached portico and studio.

Speaking of the portico, this is my absolute favorite aspect of this truly wonderful home. This covered patio connects from the north kitchen door and the west porch to the studio/workshop. In the summer it functions as a large open and airy patio that is protected from foul weather and the hot summer sun by a post and beam supported slate and metal roof. Fully opened sides on the east and the west allow for the cool breezes to flow through and make this area a truly magical one all summer long.

Directly across from the kitchen door and at the end of the breezeway is the studio or workshop. This space was originally an unfinished barn but the current owners have transformed it into a radiant heated fully insulated cabinet shop. With it's large windows and open story and a half interior, this would make a terrific studio for any artist, or a fantastically private in home office . I could see this space lined with bookshelves from floor to ceiling and into the half loft that runs along the east wall. With the double french doors to access from the drive, this is space could easily be transformed to accommodate any hobby or work interest.

2008 Real Estate Market Summary

Office Market Share- 2008 Chittenden County-Sides sold*


2008 proved to be a year of market adjustments; not only in the real estate market but for the nation's financial markets as well. As REALTORS® serving Chittenden County and the surrounding areas, the question we are often asked is "How is the real estate market - really?" There is no such thing as a national real estate market. It is critical to know that market conditions vary, not only from county to county, but also town by town.
Despite a slowing in appreciation of the average sales price of a home over the past 2-3 years, there has been a substantial increase since 2003. Unlike the financial markets, we have not see substantial drops in value. This drives home the point that real estate remains an excellent investment for the long term.
In 2008, the number of property sales declined as compared to 2007 and in most cases declined from the 6 year average number of home sales. However, in reviewing the 6 year snapshot, it mightbe concluded that 2008 was an exception to the relatively stable number of property sales throughout the years.
Increased inventories and decreased transactions add up to a strong buyer's market. Coupled with historically low mortgage interest rates, some buyers will be scrambling to purchase their first home or "move up" to a larger home in 2009. Sellers who have their homes well maintained and priced competitively can close in less than 90 days on average.
If you have any questions or would like to talk about your specific neighborhood -please don't hesitate to give me call.
(802) 846-9525
Chris@ChrisvonTrapp.com

*Soure: Vermont Real Estate Information Network (VREIN)

Chittenden County Lakeshore on Lake Champlain VT

Working your way north towards Chittenden County, the first lakeshore town that you come to is Charlotte, VT. This town is the home of one of my personal favorite summer lakeshore community: Thompsons’ Point. The land that is Thompson’s Point is still owned by the Town of Charlotte and leased for 20 year terms to the individual "camp" owners. There are no year round homes allowed by the terms of the leases and community water system is turned off by Thanksgiving and back on in May to insure that the rules are adhered to. The south side of the point has original homes that were built back in the 1800’s when Thompson’s Point Rd ended at the town steamer dock were the old post office and tavern turned camps still stand today. The North shore was developed during the 1920’s to the 1950’s and tends to have more modest structures with more abrupt and hard to access shorelines. Roughly a half dozen camps are made available for sale on either the North or South Shore areas and the prices range from $500,000 to over $1,000,000 depending on size and shoreline quality. While that may be a lot of money for only seasonal use, those who have experienced the magical environment of this summer community from another time, do not question the value.
I have rented various camps by the week from their owners in past summers and still hold fond family memories from those treasured but all too brief stays. My favorite is the Annual Forth of July Parade complete with hand pulled red wagons, participants of all ages banging pots and carrying on as they march to the old steamer dock for an appropriate speech delivered by one of the "Old Timers" followed by rousing version of the National Anthem. Good clean fun!!

Addison County Lakeshore Homes on Lake Champlain

So now that you are ready, let me give you some key towns to explore and what you can expect to find there. The Lake to the south has one major landmark that is often used as a point of reference, the Crown Point Bridge. Located in Addison Town, Addison County Vermont, it links the central part of that county to New York State, Ticonderoga and provides the quickest access south by virtue of NY Rt #87 or the Northway. Lake Champlain to the south of the bridge, while still very wide by most standards, starts to behave more like a river with a defined channel for navigation and broad expanses of shallower bays and natural marshland. North of "the Bridge" the Lake is totally navigable from bank to bank and one of the most unused parts as far north as Basin Harbor on the Vt shore and Westport on the New York side. The homes you will find both south and north of the bridge will be either seasonal and very rustic in nature, with some old style summer cottage communities , to full fledged year round homes but mostly modest in size and price. The towns you want to include in any search of this area would be Shoreham, Bridport, Addison, Panton and Ferrisburgh.
Located in Ferrisburgh, you will find Basin Harbor Club, named after the small protected harbor by the same name. It is the center of summer activity and a real attraction for year round and seasonal homeowners alike. Though it’s name makes the place sound exclusive and closed to the public, it is actually a very open resort offering reasonable family social memberships for complete us of their water front , pool, and tennis courts. For an additional fee you can also play their 18 hole golf course complete with cart. For the few members of the flying public there is a well maintained and often used grass air strip for quick day trips in and out or extended stays. Boaters can also reserve dock space by the day, week or season and North Harbor has a mooring field for transients and seasonal users alike. As you might imagine, all residences within a few miles of this great resort carry a higher value when offered for sale and the extra premium for this location is well worth it for the added summer fun and activities. Many families purchase multiple properties along this part of the lake to create an informal family compound kind of situation for all generations to enjoy. Assisting buyers in this quest during the summer is truly one of my favorite things.
As you leave the Basin Harbor area, the natural and expansive marshland formed by the confluence of Otter Creek as it empties into Lake Champlain forces you inland and through the City of Vergennes. One of the most historic cities in Addison County, it was instrumental in the US victory during the War of 1812 and the birthplace of the small armada of ships built by Admiral McDonough to take on the British. Once through Vergennes, the next significant lakeshore communities you come to is Long Point. Originally settled as a seasonal lakeshore community for the local Vermonters at the turn of the century, this area is populated by over 70 camps and cottages from rustic to completely updated all nestled in a mostly wooded enclave. While 12 of these homes are permitted for year round use, the majority are strictly for summer use only and offer a quiet lazy summertime spot at an affordable price.

Buying Lakefront Homes

When Buyer’s think of owning a year round or seasonal waterfront residence, Vermont is not often the first state they look. But those who do, soon discover what a natural wonder and under utilized resource Lake Champlain is. From the long winding channels and locks that serve as your approach from the Hudson River to the multiple "gunk hole" anchorages throughout the Lake Champlain Islands, sailing, kayaking, fishing and boating this wonderful waterway is as varied and diverse as the homes that you will find scattered along its shores. Many of these "homes" started as seasonal cottages or "camps" as they are called by the locals. The origin of the term camp most probably originated from the fact that the original use of the lakeshore lots that these structures now occupy was nothing more than a camp site with a tent platform to provide a dry level spot for your trusty war surplus canvas tent. While you won’t find any tent platforms for sale these days, the homes that are offered will run the spectrum from seasonal, un-insulated cabins with little or no luxuries to large year round luxury homes complete with all the amenities you could imagine.
Just as the structures and homes will vary - so will the quality of the lakeshore itself. Some homes, while located on lots that go right to the waters edge, will have such steep banks that there is literally no way to get from the house site to the water without negotiating the bank on your hands and knees or installing an actual staircase to the water. The depth and quality of the lake water off the shore line can also be different from one bay or beach to another. True sand beaches, as you would normally picture them, are rare and hard to find. More likely the "beach" being offered in any advertisement will be horizontal slabs of ledge or "skipping stone" quality rocks mixed with large to sand size particles. Once you have re-adjusted your definition of beach, this wildly diverse lake offers everything from shallow slow flowing marshland teaming with waterfowl to extremely well protected deep water mooring spots. All of these things are possible; you just have to know where to look.