Archive for the 'VT Housing Market Updates' Category

It’s summer in Vermont and no one needs to be told that today’s real estate market is turbulent. It seems like every time you turn on the news or read the paper someone is doling out more ‘expert’ advice on the current state of the real estate market. One-minute things are on the rebound and the next, it’s time to jump ship. What are you supposed to believe? This kind of contradictory reporting is exactly the kind of thing that puts the real estate market into a deep freeze. Nobody wants to buy a new home if the price is going to freefall the next month and no one wants to put their home on the market when prices are at their lowest.

Vermont’s Market?
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The deadline is here. The federal homebuyer tax credit opportunity will almost surely be gone by the end of the business day tomorrow (June 30^th). Despite pushes by states like Massachusetts and organizations like the National Association of Realtors® (NAR) to once again extend the tax credit, it is unlikely that Congress will make such an amendment.

 According to the NAR, up to 180,000 home buyers will miss out on the tax credit. NAR President Vicki Cox Golder told LoanSafe.org that these buyers will miss the June 30^th deadline through no fault of their own. “These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays…” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

 The NAR is pushing hard for Congress to quickly pass some legislation to extend the tax credit deadline, but many believe they will not be inclined to do so. The Massachusetts Association of Realtors is asking for a 90-day extension, giving buyers until September 30 to finalize their deals. But the Wall Street Journal is reporting that although Congress did extend the tax credit last fall, they feel it is unlikely to happen this time.

So how is this affecting us locally? Well according to NAR estimates, approximately 400 home sales in the state of Vermont will miss the deadline. That inevitably means that some folks here in the greater Burlington area, Chittenden County, and the rest of Vermont are going to be affected. And although we won’t know for certain until the end of the business day tomorrow, it appears June 30^th will be the final deadline.

Like you haven’t heard enough about it. But, just in case one of you out there all of a sudden decided to buy a house (hey, people buy when THEY are ready), this sweet deal is about to disappear. I’m not going to go explaining it all over again (please go to; http://www.realtor.org/home_buyers_and_sellers to get all the details). The deadline is April 30. But, if you are highly motivated to find a home you want to buy, whether it’s in Williston Vermont, Wallingford, or Winnetka Illinois, you could still do it.

First, you won’t be able to do this if you are a repeat buyer and you have a home to sell for obvious reasons, unless you can afford to buy another home without selling yours first. So, you’ll need to run, not walk, to a lender who is very familiar with all the different lending programs; VHFA (for Vermont real estate), FHA, VA, and conventional loans. You’ll need to get a quick pre-approval as well as reasonable assurance that the loan of choice is going to have good odds of closing by June 30.

Time is running out for the $8000 home buyer tax credit

Of course, the bigger problem is getting a deal signed by April 30. That’s where I (and other buyer agents) come in. You’ll need to stack the deck in your favor by joining forces with a buyers agent who is going to spend quality time to help you find and visit the homes you want to see up close.

Once you find THE place, you’ll want help in structuring the offer based on comps, market conditions, and certain conditions (contingencies) that make sense for a particular property. The idea here is to be able to buy at the lower end of the price range without killing the deal with unreasonable offers.

Then, it’s off to the races after reaching an agreement (signed contract). The closing process can be smooth, or not. Again, a buyer agent can oversee this phase of the transaction to avoid any unnecessary delays. My point is there is no time to waste at any point in the buying process.

The question remains, what happens if you miss this boat? Will life go on, just like it did after Y2K? An $8,000 credit is nothing to sneeze at, but like we all know in the business, people buy whenever THEY are ready, not when some program says to. At sunrise, May 1, 2010, there will still be an ample supply of homes to choose from, prices will still be benefiting buyers after 2 years of gradual declines (No, not lake front!), and mortgage rates will still be south of 6%, which is really a very good rate historically. However, years from now, there will be those people who brag at barbecues that they got a great deal on a home, plus $8,000 free and clear from Uncle Sam, and are now living the American dream..right Ryan?