It’s never easy to read the real estate market, which makes it difficult to know whether to buy a home in Vermont now or wait to make a purchase. After all, you can’t be expected to know all the steps in the process of buying a home, how to find real estate or where to go for home buyer help. There are several factors that can impact your decision, so lets explore why it might be a good time to buy a home now in Vermont.

It’s That Time of Year

 

The best real estate listings often occur in the spring and summer, a popular time for people to sell their homes. The Vermont Association of Realtors® reported that listings increased each month from December 2021 to the end of May 2022. The chart below shows the increase including a comparison of this year’s listings (dark blue) to last year’s listings (light blue).

 

 

Source: Vermont Association of Realtors®

 

While there are fewer listings now than there were in 2021, there are still opportunities for buyers to find a property for sale in various areas of Vermont. This trend should continue into the autumn months, giving buyers time to work with a top rated Realtor® in Vermont.

 

Prices are Cooling

 

While the summer temperatures are getting hotter, the price of single family homes are cooling slightly. Cooling prices may make the market attractive for those looking to buy real estate in Vermont.

Here’s a look at the average listing price of active residential listings at the end of each month this year.

 

Month Average listing price
February 2022 $645,000
March 2022 $636,000
April 2022 $594,000
May 2022 $549,000
Source: Vermont Association of Realtors®

 

Here’s a look at last year (light blue) and this year (dark blue), showing a bigger decline in prices this spring compared with last spring.

 

Source: Vermont Associate of Realtors®

 

Your Investment Will Still Appreciate

 

Experts are still predicting that home investments will appreciate over the next number of years. Home appreciation is expected to be more sustainable than the big jumps that were seen during the pandemic.

Lawrence Yun, chief economist at the National Associate of Realtors® (NAR), says, “People should not anticipate another double-digit price appreciation. Those days are over… We may return to a more normal price appreciation of 4%, 5% a year.”

For buyers, the ongoing appreciation in value should give you peace of mind knowing that your investment will be worthwhile. When you buy a home in Vermont, you’re buying an asset that’s projected to grow in value for years ahead.

 

Source: Keeping Current Matters

 

The Bright Side of Higher Interest Rates

 

It’s true that interest rates are on the rise, and the speculation is that the Federal Reserve could raise the target rate again by the end of July.

What does that mean for you?

The Federal Reserve, the Central Bank of the United States, sets the federal funds rate. This is a rate that influences all other interest rates in the economy, including what buyers pay for a mortgage rate.

If you’re in the market for a home, work with your realtor® to determine what you can afford now, and into the future if interest rates do rise. Currently mortgage rates are low enough to make home buy attractive so, locking in at a lower rate now is still a viable option.

The other good news about rising rates is that demand may begin to cool. Following recent shortages in housing inventory, this could be great news for buyers who’ve lost out on homes due to frenzied demand.

Yun from NAR® states that the experience of buying a home is also starting to return to normal, “rather than facing 15 or 20 other buyers for the same property, now maybe people can take a more leisure pace.”

 

Contact Us Today

 

The best realtor® is one that will help you find homes for sale that suit your needs as well as your budget. With changing inventory, interest rates and other factors affecting your decision whether to buy, connect with The Bateman Group to make sure you make the right decision to buy a home in Vermont.