Arts & Leisure

Real estate advice: Is this a bubble?

Are we in a real estate bubble? How do you know and what should we do?
Unlike the real estate bubble of the early 2000s, driven by speculative buyers and investors, today’s market is fueled by actual (not speculative) demand, low inventory, and mortgage interest rates hovering around 3%. Even in the bubble years, Vermont was insulated from the steep highs and lows the rest of the country experienced due to Act 250 and permit regulations. While Addison County ended 2020 with an average sale price up 8% — this market is unlike others we have experienced. The construction of new homes across Addison County and northwest Vermont is welcome, responding to the need for housing and the demand for new and energy-efficient homes. Over the past year, we have also seen a “flight to quality” as people expand their search outside neighboring Chittenden County or the major cities. Remote work remains an option, and a safe, quality of life is on everyone’s minds.
According to a recent study, 31% of home sellers realize they can sell for more than they expected — allowing them to reimagine what they want and desire in their next home or investment property. Property owners may be in a position to leverage one of the most optimal markets we’ve ever seen: rising sale prices, willing and able buyers, built-up equity, and 3% +/- interest rates. 
There are plenty of online automated home valuations you can try out to see your home’s approximate value. However, they do not, and cannot take into account the day-to-day changes in buyer demands and levels of inventory in any given “Micro-market.” The concept of national or regional RE markets is a myth born of and promoted by the digital based data companies trying to present themselves as the last word in RE valuation. They are not, so don’t be fooled! Nothing will replace an experienced agent’s local knowledge who can do a custom in-home analysis that considers specific features, updates, and hyper-local market variables. There are dramatic differences in pricing and marketing strategies that your seasoned listing agent will employ in order to take the best advantage of the current market forces that effect your bottom line. Don’t be cut short and leave money on the table. 
If you’re looking to purchase in this market, there are three things required to be successful: readiness, patience and guidance. Favorable mortgage rates and remote work options have savvy buyers being flexible in their search. Despite rising prices and multiple offers, locally, Coldwell Banker Hickok & Boardman saw 35% of their buyers purchase their first home in 2020. That’s an encouraging indication of the confidence and economic health in our market.
— CHRIS VON TRAPP
COLDWELL, BANKER, HICKOK & BOARDMAN

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