Vermont Buzz

July Existing Home Sales Highest in 5 Months

Existing-home sales rose in July to the highest level in five months, although sales have hovered in a relatively narrow range over the past 11 months, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.1 percent to a seasonally adjusted annual rate¹ of 5.00 million units in July from a downwardly revised level of 4.85 million in June, but are 13.2 percent lower than the 5.76 million-unit pace in July 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the up-and-down pattern may break soon. “We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” he said. “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection.”

The national median existing-home price3 for all housing types was $212,400 in July, down 7.1 percent from a year ago when the median was $228,600.

Lawrence Yun, NAR chief economist, said home prices in some regions could soon increase. “Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time,” he said. “Still, inventory remains high in many parts of the country and will require time to fully absorb. We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns.”

Analysis of NAR price data since 1968 shows home prices normally rise 1 to 2 percentage points above the overall rate of inflation, building wealth over the typical period of homeownership.

Total housing inventory at the end of July rose 3.9 percent to 4.67 million existing homes available for sale, which represents an 11.2.-month supply² at the current sales pace, up from a 11.1-month supply in June. The rise in supply results from a sharp increase in condo inventory; the single family supply declined.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.43 percent in July from 6.32 percent in June; the rate was 6.70 percent in July 2007.

Single-family home sales rose 3.1 percent to a seasonally adjusted annual rate of 4.39 million in July from 4.26 million in June, but are 12.4 percent below the 5.01 million-unit level a year ago. The median existing single-family home price was $210,900 in July, down 7.7 percent from July 2007.

Existing condominium and co-op sales increased 3.4 percent to a seasonally adjusted annual rate of 610,000 units in July from 590,000 in June, but are 18.6 percent below the 749,000-unit pace in July 2007. The median existing condo price4 was $223,400 in July, which is 2.7 percent below a year ago.

Regionally, existing-home sales in the West jumped 9.7 percent in July to a level of 1.13 million and are 0.9 percent higher than July 2007. The median price in the West was $273,200, down 22.2 percent from a year ago.

In the Northeast, existing-home sales rose 5.9 percent to an annual pace of 900,000 in July, but are 11.8 percent below a year ago. The median price in the Northeast was $278,700, which is 4.9 percent lower than July 2007.

Existing-home sales in the Midwest increased 0.9 percent to an annual rate of 1.12 million in July, but are 17.0 percent lower than July 2007. The median price in the Midwest was $175,400, up 1.0 percent from a year ago.

In the South, existing-home sales slipped 0.5 percent to an annual pace of 1.85 million in July, and are 18.1 percent below a year ago. The median price in the South was $179,300, down 3.5 percent from July 2007.

Source: Northwestern Vermont Board of REALTORS® (NVBR)
202 Commerce Street | PO Box 814 | Williston, VT 05495
Office (802) 862-6407 | Fax (802) 862-2306 | info@vtrealestate.com

NAR lists Vermont in top 10

NAR Chief Economist Lawrence Yun reported last week at the Annual Leadership Summit in Chicago that Vermont is in the top ten states for sales recovery.  Sales are stabilizing across the nation and he believes that the recently passed $7500 tax credit for fist time home buyers along with higher loan limits for Fannie Mae and Freddie Mac will be the trigger to unleash high pent up demand from buyers who have been sitting on the side lines, frightened by gloomy reports.  Very soon he believes that the media will be forced to report the facts of increased sales.  The recovery can be sharp or moderate depending on the job we do in getting good information out to clients and consumers.  Don’t forget that you can find all the latest commentary from NAR research at: http://www.realtor.org/research/research_commentary

Source:  Vermont Association of Realtors E-News - August 08

"Green" Kitchen Designs

Valcucine is a leading force in "green" kitchen design throughout the world. Combining unparalleled versatility and design flexibility in each kitchen they create, they also maintain a staunch philosophy in responsible manufacturing — the only Italian kitchen manufacturer that subjects its products to in-depth German tests for environmental approvals.

In addition to supporting the planet, they maintain the highest level of quality standards in using sophisticated methods from conception to completion. Their “Lego System” allows for an infinite number of aesthetic design options and endless color palettes. Discover more about Valcucine at www.valcucine.com.

Source: August 2008    Luxury Portfolio's LuxeChatter - Special International Edition. www.LuxuryPortfolio.com.

Celebrate Vermont's Finest Foods

Vermont Fresh Network
On August 3, Vermont Fresh Network will host a celebration of local agriculture at Shelburne Farms, with seminars on sustainable farming and regional foods prepared by twenty of Vermont's finest chefs. (802) 434-2000; 5 p.m.; $60

Leading Real Estate Companies of the World Survey Finds Turnaround

More brokers see beginning of turnaround

     (CHICAGO) - A Leading Real Estate Companies of the World survey of brokers finds some easing of adverse conditions in the housing market, with 59 percent indicating they are seeing a stronger market in the last 60 days.
     Nearly 20 percent of brokers said they are seeing a decline in inventory from a year ago, and 82 percent said prices are down in the past year.
     Of those surveyed, 75 percent said the decline was less than 10 percent, and 33 percent said the decline was less than 5 percent.
     Ironically, only a third of those surveyed said foreclosure properties were having a significant impact on prices.

Source: Real Estate Intelligence Report

Vol 14 No 28 – by REAL TRENDS

Get Your House Ready to Sell - Paint the Perfect Sale

Paint The Perfect Sale

Every seller is looking for the perfect sale and every buyer is looking for the perfect opportunity to seize a new home or investment property. Getting your home ready to close the deal for the most money, starts with knowing where to begin and, often, that means, quite literally, you need to paint the perfect sale.

"Often times people are selling a home that they've lived in for 30 or 40 years and they're madly in love with the wallpaper but it is extremely dated," says John Peek, President and Owner of Peek Brothers Painting Contractors.

Things like wallpaper and color on the interior and exterior walls of your home can significantly influence buyers. So it is worth carefully looking over your home before you put it on the market to see what areas need touching up or an entire re-do. If you find the wallpaper has to go, then knowing how to make the change is equally important so that you don't end up with an even bigger mess.

"To strip wallpaper can be very time-consuming, expensive, and damaging to the underlying surface making it difficult to paint," says Peek. He adds, "You can paint over wallpaper if you prime it first with an oil-based primer such as Kilz. If you do that, it seals the surface well and then you can go over it with water-based paint. But if you go directly over wallpaper with water-based paint, without priming it with an oil-based undercoat, it will peel up at the edges. So the critical first step is to prime it with an oil-based undercoat," explains Peek.

To paint the perfect sale, Peek suggests carefully looking around your home for the holes that frequently don't get filled after you've taken down family photos and artwork. "I'll often times go into homes and homeowners have put spackle up and they've just smeared a big chunk on the wall and then let it dry," says Peek.

He offers this little trick to get a better outcome. "Take the spackle and put it in the hole and then take a wet sponge and lightly wipe the surface. It removes all excess spackle from around the hole and it just fills the hole itself. Often times you can get by without having to touch it up," says Peek.

Another area of concern is the door -- in particular, doors that belong to teenagers. Picture this. Your teenager has turned her door into a collage board of photos, memorabilia, stickers, award ribbons, cards -- you name it -- all are stuck on her door, permanently securing her identity to the home you're now trying to sell. Pulling off the memories before listing the home for sale is important, otherwise buyers get caught up in all of your personal stuff and then can't see the home as theirs. Buyers also don't want the headache of having to pull down and repaint the door. And chances are you don't want to have to do that either.

Here's what Peek says sellers with this issue can do. "There are products on the market that will help you to get all that sticky stuff off the door and it's worth a try. There's a product called Lift Off that you can get at the paint or hardware store; it works wonders," says Peek.

Many sellers wonder how to get rid of a stain in the ceiling. Peek says you don't always have to re-paint the entire ceiling. "Say you've had all the leaks fixed in the roof and you still have some stains, sometimes you can by without painting by putting half bleach and half water in a little squirt bottle and lightly spritzing the surface until it's wet," says Peek. He says that you can spray the mixture on the surface of an acoustic or painted drywall ceiling. A second spray of the area will often diminish or completely remove the stain and you might not even need to paint!

If you do need to paint the interior or exterior of your home, Mike Chism, President and Owner of Chism Brothers Painting, says you can avoid painting the whole house by touching up critical areas such as the front door, trim, and fascia board.

"With exterior painting, usually the house doesn't go bad all at once," says Chism. He adds, "Sometimes windowsills or thresholds can get a lot of sun and can be prepared and touched up extending the life of the entire paint job for several years."

Chism also recommends cleaning and pressure washing your home to give it a new and brighter look.

A little tender loving care for your home before you list it is a warm welcoming sign for potential buyers.


Written by Phoebe Chongchua

Source: Realty Times Real Estate Update

From the law offices of Fred Peet, South Burlington, VT

Yahoo Study - Real Estate Professional Selection

<><> Yahoo! study reveals online resources vital to real estate professional selection Yahoo! Inc., released the results of a study on how online resources influence home buyers and sellers - specifically when it comes to selecting a real estate professional. Yahoo! found that online resources played a pivotal role in the selection process and was central in helping consumers identify agents.  While friends and family are mostly responsible for recommending agents, the vast majority of home buyers and sellers still rely on the Internet to search for potential agents in their local markets as well as to verify their choices.  However, there is a disconnect between advertising dollars and consumer behavior. Based on Yahoo!'s study, 77 percent of respondents used an online source for information during their research process compared to 34 percent for print.  But, according to a recent analysis by Borrell Associates, realtor advertising dollars have yet to catch up to where homebuyers are going - the Internet. While this year's online media spend did in fact double from 2005, capturing 32 percent of the overall advertising spend, newspapers continue to get more share of dollars with 40 percent. According to the Yahoo! study, consumers look to the Web to ensure that the selected agent will best meet their specific needs.  Key findings include: ·         Home buyers and sellers consider approximately two agents on average before making a final decision ·         The Internet impacts consumer trust.  Forty percent of respondents credited a site in increasing their trust in the agent ·         74 percent of people who accessed an agent Web site got there with the help of a search engine ·         The online research process is quick and intense: consumers spent an average of 12 hours online researching agents and 75 percent selected an agent within one week of starting their search ·         Online resources provided introduction to new agents as well as promotional deals: o     45 percent of respondents used the Internet to learn about agents they didn't know existed o    41 percent discovered special deals and promotions offered from an agent through the Internet

Steve Murray, Publisher Karen Lawrence, Editor REAL Trends, Inc. Questions or Comments? please send us an e-mail realtrends@realtrends.com

Bernanke Warns of Systemic RisK

Bernanke warns of systemic risk

Restoring financial market stability is a top priority for the Federal Reserve as a weakening housing market, tighter credit and rising oil prices threaten to hinder the economy, Federal Chairman Ben Bernanke said today, July 15th.  Reuters reported that Bernanke said financial markets and institutions remain under considerable stress. Bernanke said the U.S. Central Bank might keep open a lifeline to financial firms, while the latest data showed distress in the housing and retail sectors continues.  He promised to consider retaining an emergency lending facility for Wall Street firms past year-end, showing the Fed is determined to stop the housing-inspired credit crisis from further harming the economy. Markets have feared the two government-sponsored entities might face capital constraints. But their regulator, the Office of Federal Housing Enterprise Oversight, said the accounting change that may affect trillions of dollars of mortgage bonds issued by Fannie and Freddie should not dictate capital requirements at the companies.  Taken literally, the change could mean Fannie Mae and Freddie Mac would need a combined $75 billion in additional capital, according to Lehman Brothers.

Source: Real Trends 18 July 08

Roulette Economy of 2007 Nearing End

“2007 has been a year of challenge; 2008 will be a year of opportunity for serious buyers and for REALTORS®,” NAR Chief Economist Lawrence Yun told a packed house at the NAR Conference in Las Vegas, NV on Tuesday, November 13.

What Yun characterized as “the roulette economy” of 2007, fueled by subprime greed and then buyers’ fear, is almost over. With a favorable economy, pent-up home demand, and Wall Street “fessing up to its losses and cleaning up its underwriting,” 2008 will be a healthy market for serious buyers, he said.

Home prices nationally have declined by some 1.5 percent in 2007, which is "no big deal" after years of rapid appreciation, said Yun. In addition, he noted, there are still many markets such as Utah, North Carolina, and Tennessee that are appreciating and may even be undervalued.

Remind Clients That Markets Are Local

“REALTORS® have to educate their clients that all markets are local and that problems in a few areas aren’t meaningful," he said. "A national picture of the real estate market is just about as valuable as giving a national high temperature for the day."

Yun also noted that while the credit crunch slowed deals in 2007, much of the pain is being felt in the subprime area, while other mortgage sectors are stabilizing. Subprime constitutes only about 10 percent of mortgage loans, but accounts for some 40 percent of current foreclosures. Going forward, proposed federal legislation that would increase FHA loan limits should help moderate-income buyers, said Yun.

Yun expects GDP growth of 2.8 percent and job growth of 1.1 percent in 2008. Inflation should also remain under 3 percent, and interest rates should rise only slightly, he predicts. “For buyers who are into home ownership for the long term, housing still remains the best investment,” he concluded.

Get Ready for the New Generation

Following Yun’s presentation, former NAR economist John Tuccillo gave attendees a preview of what the next real estate market would look like. When recovery comes, said Tuccillo, most clients will be Gen X and Gen Y. These younger buyers don’t want relationship selling; instead they want the best bottom line deal you can find and the one-stop shopping to make the deal faster so they can get on with their lives.

Other big buyers in the next decade will be retiring boomers, who will want homes in 24-hour cities and college towns. “Real estate practitioners have traditionally worked with first-time buyers. Think of these people as last-time buyers,” he quipped.

It’s hard to predict when any local market will begin to improve, but there are three indicators, said Tuccillo. First would be a drop in new listings, indicating sellers are withdrawing from the market. Second, days on market will fall. And third, the gap between listing price and sales price will narrow.

Taken from the Northwestern Board of REALTORS November 2007 Newsletter

Now is a Great Time to Buy

Interest rates are still low. High end sales (over $1 million) are ahead of prior years.
Foreclosures for both New Hampshire and Vermont are very low (Vermont was 50th
of the 50 states!). Subprime lending is uncommon in our markets as well.

The lesson in all of this is that all markets are local. Both New Hampshire and Vermont
have economic challenges yet we are not in the same category as Nevada or Florida
where speculative purchasing was rampant.