2018 Q2 Real Estate Market Update

2018 Q2 Stowe Area Market Update

Canoe waterbury vermont

 

Local Market Activity

The Stowe area real estate market is mirroring the national market trends with relatively flat sales activity to date compared to last year.  Lawrence Yun, NAR chief economist, is attributing this to the lack of available housing inventory currently on the market. The Stowe condominium market, however, is an outlier here, where the combination of the ever popular Stowe Mountain Resort, and the low single-family housing inventory, has accelerated the market, which is up 29% in units sold and 20% in sales volume.

The active listing volume on the market in Lamoille County is down 37.5% from 2017…However, the median YTD sale price is up 20% across the county, a good sign for homeowners! In particular, YTD home sales in Stowe remain on par with 2017, while the median sale price increased 17%. Waterbury, on the other hand, saw a small decrease in unit sales, and dollar volume at -14% and -17% respectively.

We refer the spring here in Vermont as ‘listing season’ so it will be interesting to see how sales activity reacts to a more diverse marketplace throughout the third quarter. Our optimism remains high, as the NAR Foot Traffic Report, generally a decent indicator of future contracts and home sales, remains at a steady level, indicating that national buyer demand remains strong.

Lamoille Vermont Real Estate Q2 Market

 

InterestRates-07-1024x768

Mortgage Rates

Since the beginning of the year, mortgage interest rates have risen over a half of a percentage point (from 3.95% to 4.52%), according to Freddie MacEven a small rise in interest rates can greatly impact a buyer’s monthly mortgage payment. Mark Fleming, First American’s Chief Economist, recently said: “Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective. They are unlikely — unlikely — to materially impact the housing market. Mortgage rates are on the rise because of a strong economy, and our housing market is well positioned to adapt.” According to the  Real Estate Sentiment Index (RESI); real estate professionals around the country have not noticed a slowdown in demand for housing among young buyers; nearly 93% of all first-time homebuyers last quarter were between the ages of 21-35, with the largest share of buyers (51%) coming from those ages 26-30. So while rates are projected to climb higher throughout the year, it is estimated that the rise will not impact the market until rates climb towards the 6% mark.

Questions, Comments, Concerns? Let Us Know!


Sorry we are experiencing system issues. Please try again.

 

 


Sorry we are experiencing system issues. Please try again.

 

 

 

 

 

Facebhook Twitter Linkedin Pinterest Youtube