|Closing Conducted by:||Attorneys|
|Conveyance:||Warranty or Quitclaim Deed|
|Primary Foreclosure Method:||Judicial|
|Process Period:||7- 10 months|
|Notice of Sale:||Court|
|Redemption Period:||Up to 6 Months|
|Income Tax:||3.55% - 8.95%|
|Corporate Tax:||6 - 8.5%|
|Median Property Tax:||1.59%|
|Property Taxes by County:||http://www.tax-rates.org/vermont/property-tax#Counties|
Median Home Value: $273,024
1-Year Appreciation Rate: +4.3%
Median Home Value (1-Year Forecast): +9.6%
Median Rent Price: $1,825
Price-To-Rent Ratio: 12.46
Average Days On Market: 71
Unemployment Rate: 3.1% (latest estimate by the Bureau Of Labor Statistics)
Population: 626,299 (latest estimate by the U.S. Census Bureau)
Median Household Income: $57,808 (latest estimate by the U.S. Census Bureau)
Percentage Of Vacant Homes: 19.65%
Foreclosure Rate: 1 in every 110,369 (0.09%)
Rutland: (1 in every 17,128)
Bennington: (1 in every 21,108)
High Prices: Prices in the Vermont real estate market have been increasing for the better part of a decade, stretching profit margins thinner than most investors would like to see. As a result, profitable rehabs are growing harder to find. Again, rehabbing is still viable in the state of Vermont; just harder to find at the moment.
Low Interest Rates: According to Freddie Mac, the average commitment rate on a 30-year fixed-rate mortgage is 2.79%. While rates are up slightly from the start of the year, they are still historically low. In fact, rates are so low that they promote the purchasing of real estate in Vermont. With rates well under three percent, prospective buyers can offset today's high prices and increase an asset's monthly cash flow potential.
Low Price-To-Rent Ratios: At 12.46, Vermont's price-to-rent ratio suggests it is more affordable to own a home than to rent one. Typically a low price-to-rent ratio would drive more people to buy than rent, but that's not the case in today's market. While more people would like to buy, there isn't enough supply to meet demand. As a result, even prospective buyers will be forced to rent. Landlords will ultimately see an increase in demand as vacancies become less of a threat to their bottom line.
Secondary cities will thrive: Vermont's largest and most expensive cities are pricing out millennial homebuyers. As a result, 2021 may be the year the largest homebuyer population sets its sights on secondary cities in the Vermont real estate market. Instead of looking at places like Burlington and Montpelier, expect more affordable alternatives like Wilmington, a relatively short drive from both Massachusetts and New York.
Inventory will drive appreciation: Prices in the Vermont real estate market have increased nearly twenty percent in as little as eight years. While the driving force behind the latest bought of appreciation may be attributed to several factors, a distinct lack of inventory is perhaps the most prominent reason prices have risen so much. The Coronavirus has also prevented builders from adding to inventory, which only compounds the inventory shortage. As a result, expect prices to increase for the foreseeable future.