"I will provide the best service possible for every client I represent... I will always remember that to have a winning relationship with my clients, we must always have a mutual goal. I will never lose sight that my integrity, loyalty, understanding, accountability and creativity are what make me stand out from the real estate masses."
Nancy Jenkins, CRB, CRS
PRUDENTIAL REALTY MART
120 Kimball Ave., Suite 110
South Burlington, VT 05403 |
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The difference between ordinary and extraordinary--is that something extra.
2005 started off with housing prices rising at a brisk rate through June, due to rising employment and median incomes, and then slowing through the end of the year due to increasing rates and rising inventories. Vermont property tax receipts are down significantly over the last two months, which according to Vermont Economy Newsletter, is “another anecdote about the cooling of the real estate market.” What does this mean to the average buyer or seller in the market for a home today? There are more properties to choose from and stabilized prices, creating a less frenzied purchasing opportunity.
2005 THE YEAR IN REVIEW • Average Single Family Home Prices
| Chittenden County |
$327,739 |
up 18.3% (from 2004) |
| Addison County |
$254,961 |
up 16.4% |
| Franklin County |
$185,316 |
up 8.7% |
| Lamoille County |
$356,563 |
up 17.8% |
| Grand Isle County |
$267,322 |
up 11.9% |
The highest average sales prices were again recorded in Charlotte (at $597,813), followed by Shelburne (at $502,165), Ferrisburg (at $432,766), and new to the list this year—South Hero (at $423,161), indicating the effect of higher priced lakefront sales on average home prices. There have been lakefront sales reaching new levels all over our market area, including one lakefront home in Burlington which sold at $1.9 million, one in Shelburne at $3.85 million, and two in Charlotte over the $2 million mark in 2005.
The suburban markets of South Burlington (at $346,494), Burlington (at $344,897), Williston (at $341,763), Jericho (at $323,809), Richmond (at $312,942), Underhill (at $307,119), and Colchester (at $305,605), remain strong. The average condo price in Chittenden County increased 13% which was a decrease over 2004 appreciation rates. Condo prices have been outpacing the single family home gains for several years, and have been due for a correction in prices as buyers check out competition and amenities of newer choices.
Our area has consistently been rated “fairly valued” compared to other overheated markets in the country. However, in December, Burlington was rated as 18% overvalued in an article by CNN Money according to the latest (third quarter), Housing Market Analysis conducted by National City Corp. While our area has seen a significant increase in prices since 2000 our prices have not increased as much as other areas—like Naples, FL at 84% overvalued or Miami at 55% overvalued.
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Congratulations to Lhea Wannamaker,
our December giveaway winner. |
We are seeing an increase in sales from investors who are cashing in on properties that have been rentals, due to more competition in the rental market, property tax increases, and rising interest rates. Short term rates have increased dramatically in the past year, with the Prime Rate soaring from 4% to 7.25% in the past twelve months. Many investors who have taken advantage of lower adjustable rate mortgages have seen their payments rise which may impact their ability to carry a vacant property for long periods.
My outlook for 2006 is similar to my outlook for 2005: strong steady sales volume and a return to our more typical appreciation rates of years past in the 4-6% range. We continue to see an influx of both relocating sellers and incoming buyers for primary and vacation homes, as more folks choose Vermont as a place to live in addition to those who move here for work. If you need professional real estate information or assistance, or if 2006 is your year for a new home, condo, investment or vacation home—please give The Jenkins Team a call. We look forward to working with you, your friends, co-workers and your family.
Our best wishes for a safe, happy and prosperous 2006!
Nancy & The Jenkins Team
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TOLL FREE: 888-567-4049