Real estate in Vermont has been affected by the national recession1 year ago
Real estate in Vermont has been affected by the national recession. Things have gotten so bad that here has been only two sales in all of Killington for the whole year in 2009, for example. But brokers now report a cautious and mild upturn in home showings and purchasing contracts. No one, however, expects to see the high levels of sales from previous years any time soon. Thus, prices have been falling. But be that as it may, all available data indicate that residential realty in Vermont have not experienced the same dramatic degree of decline as other parts of the country did, in places such as Florida and Nevada, most notoriously.
The oversupply of residential realty in Vermont is temporary, though expected to exist for a few years more. Never a real estate dynamo, neither does Vermont suffer as dramatically in this recession as other places, most notoriously the perennial bywords of Florida and Nevada. For a relatively stable state like Vermont, housing is relatively balanced between supply and demand as there are no sudden population spikes. Commercial real estate in Vermont can be said to follow a pattern different only in that it is even more steady. The federal stimulus program has been welcome but it is unclear whether the money will be sufficient to force a reversal of economic fortunes.
Vermont real estate prices have been falling, though not as precipitously as elsewhere, in places like Florida and Nevada, most notoriously. For example, while the National Association of Realtors believe that the 2009 national median value for existing single-family homes was 15.5% below that of last year’s, the Federal Housing Price Index reports that Vermont home prices, including both primary and secondary vacation homes, fell only 3.2% in about the same time period. Still, there is no doubt that our current economic malaise does affect Vermont negatively, a case in point being Killington, where only two homes had been sold in all of 2009!
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