April 2021 Market Report
Another month in the books and another month of continued gains across most housing markets in the country, and our local market in Vermont is no different.
There are two predominant driving factors to the historical gains in the housing market; extremely low supply with ample demand and historically low interest rates.
Of the two, supply and demand appears to be the overwhelming factor igniting bidding wars on nearly any property listed, especially in Chittenden County. For instance, over the last four weeks there have been 200 new properties listed for sale in Chittenden County and as of this morning (4/19/2021) there were only 124 available for purchase.
This indicates that the market absorption rate is less than 4 weeks - something we have never even considered possible!
Market absorption rate helps us explain one critical factor in the market - the amount of homes available for sale. Fewer than four weeks of supply means if not another home was listed for sale, there would be no homes available for purchase, based on rolling trends, within four weeks. A balanced market is +/- 6 months. This data is heavily in favor of sellers and there is no indication that inventory rates will climb in the near future. For those of you that have considered selling recently, there truly has been no better time; and for those that are in the market to buy, waiting another year for the market to "settle down" will likely lead to a higher purchase price and higher interest rates.
The driving factor that has put pressure on housing inventory has been the demand from buyers relocating to Vermont, stressing our typically stable housing market. These buyer's are qualifying potential homes they want to virtually tour through the digital marketing prepared by seller's and their agents and the value of a qualified and experienced agent has never been more important than it is now. Choosing the wrong platform or brokerage to market your home can be detrimental, as certain websites limit the number of images for digital marketing and, like any other industry, not all brokerages are created equal. The tech tools utilized by The Malley group set you up for a successful sale. At The Malley Group, no stone goes unturned and we utilize the premiere tools needed to drive offers, escalate prices and earn clients that become raving fans!
If you or someone you know would find value from learning more about current market trends, the selling or buying process or investing in real estate, our professionals at The Malley Group are here to help!