Mad River Valley Real Estate

At David M. Dion Real Estate we hope your new year is off to a great start! Maybe you’ve even had a chance to enjoy some of this incredible early season skiing at Sugarbush or Mad River Glen or Ole’s Cross Country Ski Touring Center.

2012 was a very exciting year at David M. Dion Real Estate. In addition to robust sale activity (finally!) we continued our longstanding tradition as real estate agent leaders in the land conservation movement with two notable sales:

The Bragg Farm has been a Vermont landmark for decades. Its iconic barn has graced many postcards, Sugarbush Resort promotional materials and even the cover of Vermont Life Magazine. At DMDRE we were privileged to broker the Bragg Farm sale to the Vermont Land Trust and are looking forward to a new generation of farmers.

At DMDRE we were also pleased to broker the sale of a 180 acre farm in Rochester to the Falk family. This is our second collaboration with the Falk’s; the first resulted in Ben Falk creating the Whole Systems Design Research Farm in Moretown. Ten minutes with this guy will forever change the way you think about food as Ben is rapidly gaining recognition for teaching us all land use strategies to care for our land and food supplies in this post peak oil age. Stay tuned for what Ben has in mind “down on the farm” in Rochester!

DMDRE has a long history of participating in extra-ordinary real estate sales and 2012 was no exception with DMDRE participating in 5 of the 10 highest sale price residential transactions (as reported through the area MLS). DMDRE represented buyers in the highest priced sale in the Mad River Valley (and helped them make the purchase at a bargain price!), sold a home for the Director of Marketing at Mad River Glen (there were multiple competing offers) and brokered both an over 200 acre sale, and an over 300 acre sale with a home located in its own watershed (that means the groundwater cannot be impacted by neighboring activities), and totally off the grid.

We also sold a private home to a couple of world famous rock stars! But we are not giving the location to ensure their privacy.

Following is a recap of the 2012 real estate market based on MLS reported Real Estate Sales in the Mad River Valley towns of (Fayston, Moretown, Waitsfield, and Warren).

In 2012 there were a total of 122 MLS reported real estate sales.

55 residential sales ranging from $55,000 to $855,000
(up from 52 sales last year).
2 @ < $100,000.
9 @ $100,000 - $199,000
21@ $200,000 - $299,000
9 @ $300,000 - $399,000
4 @ $400,000 - $499,000
6 @ $500,000 - $599,000
2 @ $600,000 - $699,000
1 @ $700,000 - $799,000
1 @ > $800,000

44 condominium sales ranging from $49,000 to $470,000
(up from 33 sales last year)
8 @ < $100,000
20@ $100,000 - $199,000
9 @ $200,000 - $299,000
5 @ $300,000 - $399,000
2 @ > $400,000

19 land sales ranging from $7,000 – $1,200,000
(up from 15 sales last year).
11@ < $100,000
6 @ $100,000 - $199,000
1 @ $200,000 - $300,000
1 @ > $1,000,000

4 commercial sales of $122,500, $125,000, $255,000 and $690,000
(up from 2 sales last year).

As the attached graph shows, compared to the glory days of 2003 – 2008 the overall real estate market is still down. Another way to look at it is to say we are back to +/- year 2000 levels. Interestingly this is consistent with a number of other markets in the region and the northeast. However, we appear to have also avoided the real estate collapse seen in other markets across the U.S.

Indeed, the good news is that despite the regional and national economic challenges real estate continues to sell in the Mad River Valley. Mortgage rates are at historic lows (below 3% interest for a fifteen year fixed rate on a primary home!) and real estate continues to be one of the best hedges against inflation. Clearly those who are best informed seem to be making the most prudent buying and selling decisions.

The luxury and hospitality (lodge, B&B, Inn, restaurant) markets have shown the greatest weakness in sales. As a result, the over $500,000 market offers some of the very best buying opportunities. Additionally, the land market continues to languish with only 19 sales (there should be 30 or more sales a year). As a result, there are many great land offerings out there right now. Homes in the $200, 000 – $400,000 price range and condominiums in the $100,000 – $300,000 price range are seeing the greatest sale activity.

2013 looks to be an interesting year in the local real estate market. Overall sales in the $100,000 – $400,000 price range represented about 70% of the market over the past two years. So that is clearly where the best opportunity lies for sale activity.

Presently there are 120 residential properties for sale with 5 under contract, 103 condominiums are for sale with 4 under contract, and 111 parcels of land for sale with 3 under contract. Whether a seller’s market or a buyer’s market three rules always apply: Desirable location, good overall condition, and realistic pricing. By contrast if you are in a less desirable location, with a lot of deferred maintenance and asking a premium price, then expect to be for sale for a very long while.

Please visit our real estate blog for monthly updates on real estate activity and of course do not hesitate to call or write anytime with your questions or comments.

From all of us at DMDRE best wishes for a happy, healthy and prosperous 2013!