June 26, 2006
Dear Friends & Clients,
I thought I would update you with some of the trends we have seen in the
residential real estate market over the first six months of 2006. There is no shortage of
articles about real estate in the national media, and recently they all seem to be focused
on the slowdown in the market. We have certainly found that to be the case in Addison
While the number of units sold has remained almost identical to last year, the
activity levels have certainly diminished. There are fewer buyers looking at property and
they are much more cautious than in past years
Another noticeable trend is the amount of inventory currently for sale. In Addison
County, that figure is up 40% over last year. We currently have 220 residential properties
for sale. It has been many years since that number has been over 200. In Chittenden
County, the inventory is up 84% and in Rutland 58%. With fewer buyers and more
property on the market, the number of showings decreases for everyone.
My feeling is that the pendulum has swung back to a more balanced market.
Prices have remained stable and there has not been a major national trauma, as we have
witnessed in past market declines.
I have just returned from a Coldwell Banker conference in Rhode Island where I
had a chance to speak with a number of brokers from around the country and everyone is
experiencing a slowdown. Some markets were off by as much as 40%. So things could be
a lot worse.
Barring any unforeseen economic problems, I remain optimistic that the buyers
will reenter the market place and things will improve. Interest rates have gone up, but a
30 year fixed rate mortgage is currently hovering around 7%.
Meanwhile, we will continue our marketing efforts on your behalf with continued
emphasis on the internet.
Your thoughts or comments are welcome.
Thomas M. Walsh