By Kasia Butterfield, on February 6th, 2012
The 2011 real estate sales results are in and my 2011 Upper Valley Market Study is ready. Over all the market here in the Upper Valley showed slow improvement. The one exception would be in Quechee Lakes where the second home market was flat, and prices have continued to drop. 2011 turned out to be nearly a repeat of 2010 for sales in Quechee Lakes with very little change in units sold year over year. On the plus side the average days on market for those properties that sold was down about 10%. The damage caused by Irene has also been a factor. Rentals dropped off sharply after Irene and those renters are our future buyers. Repairs to the facilities at the club are well underway, but the lack of a bridge has proven to be more of an issue than one might think. We are hopeful that too will be repaired by this time next year. Despite the stagnant Quechee market our office saw a 20% increase in business fueled by our activity outside QLLA. A sign that the surrounding markets remain vibrant.
While we haven’t yet seen the turn for the better in the market here in Quechee, we are seeing positive signs in other second home markets both in Vermont and nationally. Unlike 2010, conditions exist which should help 2012 finally be the year the market turns in Quechee. The primary driver of activity is value. Buyers are finally beginning to see the value in properties here. With prices at nearly 50% less than the height of the market and interest rates remaining at or near all time lows, buyers are starting to seriously consider purchasing.
You can read the full report by clicking below. If you would like further details on market conditions in Quechee or the greater Upper Valley, give me a call and I will be happy to answer all of your questions.
2011UVMarketStudy (1)
By Kasia Butterfield, on January 13th, 2012
Check out the new Redpath Difference video and find out why we are the best at what we do!
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By Kasia Butterfield, on December 29th, 2011
While we haven’t yet seen the real estate market improve here in Quechee, the surrounding market has seen improvement and this article indicates that nationally home sales are increasing as well. It’s only a matter of time before Quechee begins to enjoy the same improving market. Click on the link and see for yourself and watch here for my 2011 Upper Valley Market Study early in January!
http://realtormag.realtor.org/daily-news/2011/12/29/pending-home-sales-rise-again#.Tvyn0FMNkHE.facebook
By Kasia Butterfield, on December 22nd, 2011
Here’s a picture of the latest view of the waterfall and bridge from Simon Pearce. Granted it doesn’t look as fabulous as it did pre-Irene, but during a recent lunch on Simon’s we found the view to still be worth the trip. You can see the damage to the bridge and surrounding buildings, but surprisingly from this angle it looks pretty good. Do come up and visit us and see for your self. We have made an amazing recovery and Quechee and all of it’s businesses are open for business.
By Kasia Butterfield, on October 23rd, 2011
Finding Halloween Fun here in the Upper Valley can be a challenge. Here’s one fabulous idea that’s great fun for the whole family.
By Kasia Butterfield, on September 11th, 2011
Irene hit my home town of Quechee hard. She hit other communities nearby even harder. We rode the storm out at home until late afternoon and then ventured out to see if what we had been hearing from our friends was indeed true – that Main Street was a river and the Ottauquechee River was washing away the bridge. Sadly they proved to be true and even worse. We witnessed the river rising nearly 40 feet to wash over the Quechee Covered Bridge and through neighboring businesses. The water also rose to cover the green in nearly 15 feet of water and debris. The only thing visible was the roof of the gazebo. In the end the damage in our town was primarily limited to our golf courses, our green, our bridges and business located on the green and near the bridge. In nearby West Hartford, many homes were damaged and lost. Similar stories are being told in Woodstock, Sharon, Royalton, Bethel, Stockbridge and other communities in the Green Mountains. Even the Killington Peak lodge collapsed under the strain of Irene.
During the storm I witnessed the lack of good decision making of many storm watchers. Some people were actually walking through the water running down Main Street with small children, or crossing the police lines to get a better look at the collapsing bridge. It does make you wonder how some people think. However, after the storm I have seen our community come together to help those left in ruins. Hundreds of volunteers show up daily to help those in West Hartford, others make lunches for the volunteers, businesses step up to help their employees left stranded without power or even a way to leave their homes due to road damage. The town of St. Albans even filled an entire school bus with food, clothing and other supplies for our town when we played them in a football game after the storm.
As I sit in my office listening to the silence on the once full of life Quechee Green, I am comforted by the good that I see in people in my community, my state, and my country. It’s too bad it takes a disaster to bring out the best in us, but I for one am glad to know that best in us is there when we need it.
By Kasia Butterfield, on August 12th, 2011
Location, location, location is how the saying goes. Location is the one thing about a property that can’t be changed and has the strongest impact on value. Buyers pay attention to what surrounds a home – are the neighboring homes well kept? Is it on a busy road or is there traffic noise from a nearby highway or train tracks? Here in New England, the amount of sunshine as house receives is often a very important factor as well. Young families also want to know if there are other children in the neighborhood, but before they ask any of these questions, they ask about schools. “Tell me about the schools” is usually the first thing I hear from people relocating to our area and that is a very difficult question to answer. We are fortunate here in the Upper Valley to have very good schools in many of our communities and to tell a family which school might be best for their children is nearly impossible and not my field of expertise. Each child is obviously different and might flourish in one school and flounder in another. When I am asked I suggest buyers do their research and visit each school. Simply relying on stats on a website doesn’t provide the full picture of a school.
The effect of schools as part of the location equation can’t be ignored. Time and time again I see the quality of schools in a community have an impact on a buying decision. As an example the Hanover schools have a very good reputation, and new families coming into the community are often told that those schools are best and that other schools in the area don’t measure up. I’m not condoning that statement, but rather relaying what I hear from my buyer clients. As a result I often see a family either overextend themselves or buy much less house than they could in another community so that their children can attend Hanover schools. They may never take a vacation again, but their kids are in the “right school”. On the flip side, in late 2009 and early 2010 when the 1st time home buyer tax credit was in place, homes in Windsor were selling very well because of the price point in that community. That was until the news about the schools performing badly on the standardized tests hit the papers. Literally the next day sales in Windsor hit the skids. Homes that a few months before would have sold in weeks were sitting on the market for months. We are just now seeing sales pick up again there.
I would suggest that residents of a community keep the quality of their schools in mind when considering budget votes. Schools shouldn’t get a blank check, but keeping the quality of a community’s schools high is important not only to the education of the children, but the value of homes as well. The extra expense for school improvements may be far less than the reduction in value of a home if the schools are perceived as inferior to a neighboring community.
By Kasia Butterfield, on July 30th, 2011
A promising 1st quarter of sales of Quechee Lakes homes and condos gave way to a disappointing 2nd quarter leaving 1st half Quechee Lakes sales 1 up over 2010 at 18 closed sales. I am asked almost daily why sales are so slow. The answer is complicated yet quite simple. The average Quechee Seller does not have to sell nor does the Buyer have to buy, and that can be a difficult match to make. The majority of Quechee sellers would like to sell for various reasons, but it is not a necessary sale. There are, however, those sellers out there who do really have a need to sell. On the buy side, home ownership in Quechee is an option. Many buyers would like to purchase and take advantage of the current downturn, but unless the home is exactly what they need and/or a great value, they are not going to make the commitment. This leaves us with a large inventory of properties on the market making it even more difficult for buyers to choose and forcing the minority of sellers who really do need to sell to reduce their prices until the buyers just can’t pass on the purchase. The end result is continuing falling prices and home values. What’s the solution? A reduction in inventory which is not going to happen simply via the current sales rate. Seller’s need to take a serious look at their motivation for selling before listing and decide whether they wish to sit on the market while others are forced to reduce prices, price the home aggressively enough to sell, or wait out this challenging time and return to the market once prices stabilize and inventories are at a more manageable level. If you would like to discuss the Quechee market further, just let me know. I’d be happy to chat with you.
By Kasia Butterfield, on April 20th, 2011
Thanks to our friends over at NAR for this report. Granted, 3.7% is nothing to light fireworks over, but we keep seeing these little rays of sunshine on our industry and I intend on taking every opportunity to celebrate the little victories!!
Sales of existing-home sales rose in March, continuing an uneven recovery that began after sales bottomed last July, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.
Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”
NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13 percent of gross household income, the lowest since records began in 1970.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84 percent in March, down from 4.95 percent in February; the rate was 4.97 percent in March 2010.
Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.
“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.
“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.
A parallel NAR practitioner survey shows first-time buyers purchased 33 percent of homes in March, compared with 34 percent of homes in February; they were 44 percent in March 2010.
Record Share of All-Cash Sales
All-cash sales were at a record market share of 35 percent in March, up from 33 percent in February; they were 27 percent in March 2010. Investors accounted for 22 percent of sales activity in March, up from 19 percent in February; they were 19 percent in March 2010. The balance of sales were to repeat buyers.
The national median existing-home price for all housing types was $159,600 in March, down 5.9 percent from March 2010. Distressed homes – typically sold at discounts in the vicinity of 20 percent – accounted for a 40 percent market share in March, up from 39 percent in February and 35 percent in March 2010.
NAR President Ron Phipps said some renters are looking to home ownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of home ownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”
Total housing inventory at the end of March rose 1.5 percent to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.
Single-family home sales rose 4.0 percent to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5 percent below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3 percent from a year ago.
Existing condominium and co-op sales increased 1.6 percent to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1 percent below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1 percent below March 2010.
Regions: Northeast
Regionally, existing-home sales in the Northeast rose 3.9 percent to an annual level of 800,000 in March but are 12.1 percent below March 2010. The median price in the Northeast was $232,900, down 3.0 percent from a year ago.
Midwest
Existing-home sales in the Midwest increased 1.0 percent in March to a pace of 1.06 million but are 13.1 percent lower than a year ago. The median price in the Midwest was $126,100, which is 7.1 percent below March 2010.
South
In the South, existing-home sales rose 8.2 percent to an annual level of 1.99 million in March but are 1.0 percent below March 2010. The median price in the South was $138,200, down 6.6 percent from a year ago.
West
Existing-home sales in the West slipped 0.8 percent to an annual pace of 1.25 million in March and are 3.1 percent below a year ago. The median price in the West was $192,100, which is 11.2 percent lower than March 2010.
—NAR
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1996 Quechee Main St.,
Quechee, VT 05059
802.296.6505 Direct
802.296.1160 Office
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