Residential values were mailed out this week to Burlington property owners and we took this opportunity to inquire as to the condition of the market with a number of influential players in Burlington
We began with an interview with Russell Washburn, Burlington Town Assessor
He characterized the Burlington residential market as healthy now and in the foreseeable future. In response to the question of a housing value bubble, Washburn replied that “he has been saying that for three years but sees only a stabilizing of prices near term as opposed to a large deflation of Burlington’s residential prices.”
In the condo market he anticipates continued rising prices primarily because of increasing demand and lack of supply.
The average home value has risen to 406,990 after this year’s revaluation. Washburn does expect some abatement requests to follow the revaluation in Burlington however he points to last year when he received only 20 applications as an indication that Burlington has been fairly accurate in matching values to market conditions.
You may examine the values assigned to any properties in your area by going to Burlington.org and clicking on the assessor's office icon.
Mr. Washburn also added that he is beginning to see a turn around in the commercial market with some of Burlington’s vacant space being absorbed
In addition to our discussion with Mr. Washburn, I conducted phone interviews with 4 of the top real estate sales producers in Burlington, according to the multiple listing property information networks.
The four participants were;
Beverly Vidoli of Vidoli Associates Inc.
June Tabaldi of Century 21 Northshore
Michael Austin Prudential Suburban
Joanna Schlansky of Exit Premier
What was remarkable about the interviews was that despite the fact that it was four different individuals with four different firms and varying years of experience in the Burlington market, each of the four brokers questioned had remarkably similar opinions on the condition of the Burlington Market.
All four participants agreed generally on the following observations.
1. The market in Burlington has slowed and prices are soft, however it is more of a stabilization of the market than a deflation or bursting of a bubble. There is still a steady stream of lookers.
2. The total inventory on the market now is roughly 90 units which is significantly higher than the average number which generally is in the 40 unit range at any one time.
3. The average number of days a house is on the market is now in the 60 to 120 day range although September is likely to decrease those numbers.
4. General uncertainty in the market has been created by rising energy and utility prices. This has had a tendency to make stretch buyers reconsider whether or not they want to buy at this time.
5. Mortgage rates are still a positive force in the market. Although the Fed has continued to raise the short term rates, mortgage rates are more a function of long term bond prices and those rates have stayed relatively stable. There is a large supply of mortgage brokers and some innovative mortage products available for marginal or first time buyers.
6. Burlington remains a destination of choice because of its proximity to Boston, a low tax rate and town services and schools that are attractive comparable to the region. One broker mentioned however that uncertainty in the area of school infrastructure was an item some sellers had mentioned as a reason for leaving Burlington.
7. The condo market remains hot because of long time Burlington residents becoming empty nesters and seeking to downsize but remain in the community. Lack of supply has been expressed by senior citizens as a concern here as well as a lack of variety in the size of the condos being offered.
8. The market remains extremely competitive from the broker’s perspective because as many as 50 new brokers a month are being licensed in the region. This adds some unrealistic raising of expectations by sellers who have many conflicting value opinions to pick from as well as it indicates that a market has topped out when many would be producers are late to the party.
9. One underlying reason for continued strength in the market is the tear down. With lot prices in the 350k range any home below the average 406k price is likely to continue to be near that value because of the potential to be redeveloped into a new home. When the first tear down appears in an older neighborhood it has the effect of establishing bottom line values in that neighborhood.
Michael Austin had a particularly keen observation regarding the impact of net technology in the market place. “Buyers are coming to the market loaded with information about the region, knowing comparable sale prices and length of time properties are on the market. The key for the seller is to have a reasonable price and a desire to sell versus testing the waters”.
