Vermont housing market stable despite losses in other New England states

first_imgAcross New England, single family home sales dropped an average of -5.0% in 2010, the 2011 Housing Market Outlook and Forecast from RE/MAX of New England states. Some New England states, like Vermont, bucked the trend however, and were not hit as hard as other states by the continued housing market woes this year.As anticipated, the overall home sales in 2010 were down, despite a stronger showing in the first two quarters of the year, thanks to a federal tax credit extension and an uptick in seasonal buying. For the second half of the year, despite mortgage interest rates hitting historic lows, home sales stalled. Jay Hummer, RE/MAX of New England Executive Vice President and Regional Director, believes this to be because of lower consumer confidence in the face of a struggling job market.Remaining largely flat in 2010, Vermont, with the fifth lowest unemployment rate in the nation, was not hit as hard by the recession as many of its neighboring New England states. Single family home sales posted modest gains of 2.7%; multifamily homes faired better with increases of 7.0% in 2010, while condominium sales were down by -5.0%.Bill Desautels, Broker/Owner of RE/MAX North Professionals in Colchester, maintains that Vermont was largely unaffected by the nation’s recession. ‘Statewide, we’re up less than one-tenth of a percent, putting us just about even with 2009.’According to a report from the Federal Housing Finance Agency, Vermont’s housing decline has been far less significant than the rest of New England and even the nation with only seven states faring better. In fact, foreclosure activity in Vermont is down more than 20% over last year.Overall, in 2011, RE/MAX expects the market to stay on a continued path of stable home prices, increasing mortgage interest rates and an escalation in foreclosure activity. In addition, the current level of investment purchasing will increase significantly this year.Source: RE/MAX of New England. Natick, MA – January 10, 2011 –last_img