When you consider there are over 30 full-time agents in The Valley whose
livelihood depends on sales, you can get an idea of how down the market
is as this is the same market that generally can support us.
And now the good part - the winners in this economy are the buyers. Why?
Prices are at their lowest in years. I've been watching the Mad River
Valley market for 45 years. For those of you fortunate and prescient
enough to have good credit scores, good incomes and/or access to cash
(cash is still king) there are tremendous bargains to be had in every
category. Interest rates are between 4.5 to 5 percent. One of our
clients said he was told he could refinance to 4 percent.
On the primary resident front, there are always sellers who want to or
need to sell because of job requirements or family needs or retirement
time or downsizing. Anyone, whether a primary resident or second home
owner who will be selling and buying in the same market, should
recognize that this is not a bad time to sell even if the prices don't
meet their expectations because they will have access to properties with
lower selling prices, so basically it's a wash.
Because there has been so little activity in the recent (especially the
last five months) market there is a lot of pent-up buying and selling.
As a result of so little activity, the prices on most properties have
been reduced, many of them significantly.
The market has been through a protracted slowdown and value reduction -
much of it was warranted, but tell that to a seller who purchased during
the high market years. The market always comes back. The big question
is when. If someone has inside information on that question, please
share it with us. For now I can only offer my opinion. We need a few
pieces of sustained good news to restore confidence. In the meantime,
however, interest rates and prices are low - both at the same time - a
happy combination.
I would suggest that if you are in the market to purchase, do your
looking now so that you are prepared for when the buying frenzy starts -
and it will if history is any barometer.
Whiteside lives in Warren and owns VARE Real Estate.
