Relocating. Moving Up. Downsizing. Moving On …

How’s the market?

Leading the Recovery: Prices Up, Inventory Improving

Chittenden County’s average sales price was measurably UP in 2010 +4.5% year-over-year, to $282,902 from $270,686. The average price of a house sold in 2010 was up 2.59% to $313,946, from 2009’s $306,063, while the average price of a condo sold was up 5.7%, to $229,029 in 2010 from $216,661 in 2009.

In 2010, we saw 2568 listings hit the market, down slightly from 2736 that hit the market in 2009. Inventory is a little lower, meaning that absorption of what is for sale should be a little stronger.

* The number of listings sold was down slightly in 2010 (-7.67%)  — with 1347 sold compared to 1459 in 2009. If, as has normally been the case, Vermont mirrors (if not leads) national trends, the pace of sales should pick up this year. And if January is an indicator, the trend has already begun.

* On another positive note: The cumulative value of all property sold declined LESS THAN the decline in volume — meaning two things:

  • that values have solidified, formed a base that we can trust won’t slip more — a market postured for stabilization and slight increase in values, and
  • the latter half of 2010 saw the return of confidence and sales in higher price categories, with robust activity in the luxury market, and returning activity in the $400,000 – $800,000 range.

 

average prices and days on mkt

Market Recovery, Charted Average prices in Chittenden County in 2010, charted in comparison to past years, illustrates the emergence of a recovery trend. High inventory c9ntinues to compel longer than comfortable time on market for many homes, and increases the average amount of time it takes to move from “just listed” to “under deposit.” However, improvement in inventory and absorbtion has begun.
Chittenden County by the Numbers The dark side of this otherwise up-lifting news is about the remaining inventory of homes on the market — homes that have not sold. The good news is: inventory is returning to, but has not yet reached, balanced market levels. Between 2004 and mid-2008, Chittenden County carried anywhere between 350 and 700-ish homes on the market at any given time, selling between 100 and 250 homes per quarter. As recession took hold, between mid-2008 and the end of 2010, Chittenden County has carried between 750 and 1300 homes on the market, selling about, or slightly fewer than, 200 or so per quarter. Inventory grew and was not being absorbed by demand in the marketplace. By the end of 2010, inventory inched back down to 763 homes for sale in Chittenden County … about eight months of inventory. We consider a market balanced when inventory is likely to be absorbed within close to 6 months.

5-Year Market Activity 2005-2010
Five-Year Market Activity 2005-2010