As we have noted from our Multiple Listing Service statistics, business
written (the number of new contracts) have shown declines from the
levels for September, October and November over the same period for
2004. The decline was especially precipitous in September, when
Katrina, Wilma, and the resulting spike in petroleum products helped to
pull down consumer confidence nationally. Locally, the announcement
that two of Vermont’s ski companies (Rossignol and Dynastar) were
moving to Utah along with the announcement of the proposed sale of
medical software company, IDX to GE Medical gave the local market pause
to reflect on a long period of appreciation. October and November’s
decline was not so precipitous, but there is a clear change in attitude
as market times increase and inventory rises.
Historically, interest rates are still terrific and consumers have
recently been complaining about the lack of inventory. Though there is
more on the market, our inventory is still comparatively low. (There
were many more properties on the market in the mid ’90′s.) Vermont’s
unemployment rate is rising, but still one of the best in the region.
