Blog :: 06-2012

Interest Rates for the Vermont Home and Condo Market- Where are they now?

If you are in the market for a home or condo in Vermont, and the greater Chittenden County areas- Burlington, South Burlington, Williston, Essex, Shelburne, Charlotte, etc, you have no doubt been keeping a keen eye on interest rates these days. If you haven't done so, you need to start! The timing of when you lock in your interest rates as it relates to your closing date is critical. You don't want to lock in too early, for example, and potentially lose your remarkably low interest rate. As far as TODAY'S interest rates go, they are standing close to 3.6, depending on the financial institution you check. When checking rates, be sure you see the rate that is most applicable to you--30 year, 15 year, number of points down, etc. The rate of 3.6 is 30 year, no points. The rate will change significantly based on the terms that fit best for you and your family. Moving forward, if you would like to check the historical averages for mortgage interest rates, please see a site we visit regularly; http://mortgage-x.com/trends.htm This site will be an invaluable resource in tracking national rates, and you can then compare them to what your local Vermont institution may be offering at any said time. Other links that we check frequently are some of the local Burlington/ Vermont lenders, to check on daily rates. Here are a few of our favorites:
  • www.vtfcu.com
  • www.peoplestrustcompany.com
  • www.nefcu.com
That's all for today. We hope this entry on Mortgage Rates has helped you as a buyer. Remember; an informed buyer is a smart buyer!

Important Sales Data for Chittenden County and the Surrounding Area- Homes and Condo's are on the move!

If you are in the home or condo market in Northwestern Vermont- South Burlington, Colchester, Williston, Essex, Burlington, Shelburne, Charlotte, etc, than you have no doubt been keeping a keen eye on the sales in our area. Today, we'd like to provide you with some important sales figures as it relates to our market, because the data does matter!
  • New Listings are down from May 2011, from 335 to 310. This is ultimately good news for the average seller, less homes on the market means less competition for your home to sell. On the building side of things, we are seeing a lot of people chose to remodel their homes, instead of putting them on the market. This could have something to do with the decreased inventory this year.
  • Pending sales are up to 182, from 149. This is a dramatic increase of 22% from the previous year. Buyers are on the move, and willing to move quickly on the right home or condo--also, this proves that banks have money to lend to qualified buyers.
  • As no surprise based on pending sales figures, Closed Sales for this year are up 32%.
  • The average days on the market for a home is now 116 days. This is slightly up from last year at this time, which was 111 days. As a side note, we at Dousevicz Real Estate just experienced a home located in the right area, priced for the right amount, that was on the market for just 3 DAYS. The market is warm in a lot of areas, and HOT in select areas of our region.
  • Both the median and average sales price are up 4.3% and 5.6%, respectively. The last two points, when read together, means that sellers are holding out a bit longer for more money for their home or condo. This is a very healthy sign of the market improving.
  • The inventory of homes for sale is currently 1137, which is a 13.9% decrease from the previous year.
All in all, the data for Burlington, and the surrounding areas is very good as we enter the Summer months. Looking for more information, or just want to discuss the market a bit more? Contact Brad today!

Some Simple "Need to Know" Financing Facts, and what requirements have changed in recent years.

It's no secret that the financing of a home is a bit more challenging than it was back in 2007. After all, relaxed and often unregulated lending practices got us all into the market crash of later 2007 and 2008, and yes, even Vermont Real Estate suffered some of the consequences. So how does the new lending landscape affect you, the future home or condo buyer in Vermont, and what can you expect to provide for the successful approval of your loan? Here are a few details: - The first thing you'll notice is that the typical maximum amount you'll be able to get a loan for is roughly 80% of your future home's value. In 2007 it was not unheard of to hear of loans for 100% of a home's value. Now, if you are a first time home buyer, there ARE programs that will allow you to qualify for very LITTLE money down, and in some cases ZERO cash down. This is not the norm, however, for the typical home buying public. -You should plan on having FICO credit rating score between 680 and 720. If you are thinking of buying a Vermont Home or condo in the next few months, it is a great idea to check your credit score, and see how you can improve it. You'd be surprised how quickly you can increase your credit score by 100 points or more in a few short months. -The amount of income you can spend on your home, and related home expenses is usually around 38%. If you're above this amount, you may not qualify for the loan you are looking for. For history's sake, this amount in 2007 was closer to 45%. -You'll need to verify your employment 10 days prior to closing. If you're thinking of making a career change, do it AFTER you close on your home. For that matter DO NOT buy any major purchases prior to your home closing! In 2007, you only had to verify your employment 45 days prior to closing. In closings that we've managed this year for our clients, we've seen that well qualified buyers are getting their loans, with very little frustration. As long as you are aware of the above mentioned guidelines, your loan should go through the process smoothly, and you'll be enjoying that new home or condo in no time! For more questions on financing your next home, or just questions on what to do next, contact Brad Dousevicz at 802-238-9367. Happy to help!