Thursday, August 4, 2022 / by Brian Armstrong
Is Now a Good Time to Buy a Home in Vermont
If you have been looking for a home, considering buying property, or just watching the news over the past two years, you have probably heard about the wild and wacky real estate market. Home prices skyrocketed, homes sold moments after listing, and bidding wars dominated the market nationwide. Where does that leave us today? Is now a good time to buy? Please note we are not financial experts, so please consult with a financial institute before making a home purchase. However, we want to help you understand what is happening in the Vermont real estate market so you can make educated decisions!
The Economic Slowdown
As you may well know, the US economy has experienced significant volatility in 2022. This volatility penetrated the Real estate market as indicators showed recessionary activity. Inflation rose quickly to over 9%, thus driving the Federal Reserve to increase the rates for borrowing. These actions caused consumers to borrow less money and ultimately spend less overall. This slowdown has also bled over into the real estate market. Between higher mortgage rates and tighter consumer budgets, many buyers are not actively participating in the market. That fast-paced, inspection-waiving seller's market may be a thing of the past.
With all the craziness in today's market, there is still a beacon of hope for your homeownership goals! The recent actions of the Federal Reserve to fight the inflation of the USD caused a shift in the real estate market. We went from record-low home inventory to a more balanced supply and demand model. This demand pullback generally helps to lower the average sales price for homes, creating more opportunities for buyers to find their perfect fit. Additionally, if you prefer to take your time with your purchasing decisions, you will likely have more time to review properties as they are not flying off the market as quickly as they have been in recent months. In addition, we are starting to see a plateau and decline in mortgage rates, which can help buyers that need financing purchase the home they want.
Is Now the Right Time to Buy?
If only we had a crystal ball to know when the right time to buy a property was, but all purchases, real estate specific or not, come with some risk. What we can do, however, is look back at historical data of Vermont homes to make sense of what is going on currently. Let's jump back to the 2008 housing crisis. Although Vermont prices did drop during this historic downturn, the impact was not as high as in other parts of the nation. In addition to Vermont's resilience to historic recessions, you should also consider the cost of renting. Rental prices have been on a steady rise, leaving you vulnerable to price hikes. A home with a fixed mortgage can help you map out your living expenses for the future more accurately. So if you're in the market for a home, now may be the perfect time to take advantage of this unique economic situation we are facing!
Need help with your home search? We are here to help! Please reach out to us at email@example.com or call us at 802-735-2167.