Posted by: Clayton-Paul Cormier, Jr. | January 8, 2011

2010 Vermont Real Estate Year In Review

Capricious recovery. Rebounding, wobbling, teetering, another surge, a continuing crise de confiance marked by tempered inspirations and flights of optimism.

2010 Vermont Residential Sales Volume

Job shortages, swollen deficits, hammered mid-term election incumbents, 2010 was a year spent climbing out of the deepest recession since the 1930’s.

China muscles past Japan as the worlds’ second strongest economy, a stunning but not suprising reminder of the competition American supremacy faces. According to the World Bank, China, with a massive thirst for raw materials, could surpass the United States by 2020.

The real estate crisis commands headlines across the nation and here in Vermont. While 30 year interest rates dipped to 4.17% in November, the lowest in decades, one in four homeowners across the nation owed more than their property was worth leading to viral short sales and foreclosures, not even our Green Mountain paradise immune to the perils of the market’s flooring. Q4 saw a 23 state foreclosure freeze in the face of allegations of lender mishandling and robo-signers signing well over a hundred foreclosures a day without regarding case details.

2010 Vermont Land Sales Volume

Facebook tops 500 million users changing the way the world communicates including practitioners, buyers and sellers of real estate and iPads revolutionize browsing the internet with touch screens taking to larger an larger devices including jumbo flat screen monitors. At this rate it won’t be long before you can search for your new house or comparables of your existing home in the multiple listing service on a virtual bright lit screen in thin air.

Mobile Freedom: Working in the Clouds

The increasing importance of  cloud computing. Maple Sweet Real Estate transfers significant operations from remote devices to the cloud. The Econonomist publishes on our “clouded future”; the growth of e-labor and e-commerce.

These fundamental changes in how we work are liberating real estate investors to live full or part time in Vermont rather than being shackled to their metropolis.

Huffington Post on the struggling economy: “As the year closes, the economy makes broad gains. Factories produce more. Consumers – the backbone of the economy – return to the malls. Congress passes $858 billion in tax cuts and aid to the long-term unemployed. Yet more than 15 million Americans are still unemployed. Economists say a full economic recovery remains years away.”

In the face of historic tax revenue shortfalls, federal, state and local governments tighten their belts affecting Vermont property owners, schools and communities. School budgets are feeling the heat with programs and in some cases faculty being cut, on others pressure to consolidate schools. Among the ensuing potential changes in 2011, the Vermont legislature may vote into law what Governor Douglas vetoed in 2011,  fundamental changes to Vermont’s Current Use Program that would alter how the Land Use Change Tax (LUCT) is determined.

The definition of fair market value, on which the tax is calculated, would shift from the most recent assessed value of the land being withdrawn from Current Use to the prorated sale price at closing. In many towns across the state this change would constitute a significant increase in the LUCT (withdrawal penalty) for sellers, especially as inflation sets in and Vermont’s real estate market improvement accelerates.

2010 National Association of Realtors (NAR)Pending Home Sales Index showing pending home sales in the North East up in 4 of the last 5 months of 2010.

2010 NAR Existing Home Sales Index showing North East existing sales volume up 6.4% in November vs October (down 35.11% vs last year) and Existing Home Sale Prices up 9.2% vs last year.

NAR Chief Economist Lawrence Yun in a Video on the gradual recovery.

 

Businesses Hiring, Unemployment Falls to 9.4% in December, Lowest Since May 2009

CNN : “Overall, the economy rounded out 2010 with 1.1 million jobs added, the best one-year gain in hiring since 2007.

Vermont Unemployment Rate

While the latest data brings hope for 2011, economists caution that job gains will be gradual at best. There’s still “a long way to go to recover the 8.5 million jobs lost since the Great Recession began.”

Capricious indeed, but the flourishing recovery is in motion. Vermont property owners have much to celebrate being in a better position than 12 months ago & having a markedly brighter forecast for this year. Coming out of three historically difficult years, 2011 promises a better landscape to enjoy and take advantage of.

 

Connect to maplesweet.com, e-mail info@maplesweet.com or call toll-free 1-800-525-7965 to list your property, arrange for showings, or look further into Vermont’s real estate market.


Vermont Required Consumer Information Disclosure: please note Vermont  real estate agencies represent Sellers directly or indirectly by default. Buyer representation can be gained for properties not already listed by Maple Sweet Real Estate. To better understand the merits of or arrange for buyer representation, please email or call for further details.
If your property is already listed for sale with another real estate agency, this is not intended as a solicitation of that agency’s listing.
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Responses

  1. I live in Hamburg Winterhude, Germany and my work actually deals with this matter.
    Genuinely doing what you like and writing about it in such a fantastic way is a great gift.
    Your writing is informative, illuminating,
    and passion-driven, all of which I deeply admire when dealing with this
    topic.

    • Thank you ever so much for the kind words. Writing is such a pleasure, isn’t it? Hope your spring in Hamburg Winterlude is aglow in blossoms and hope.


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