Rent Real EstateRhode Island"s Slowing Price Appreciation Is Good, Say Realtors
Like other parts of the country, Rhode Island real estate had been in a frenzy, but whether you are inland or on the coast, it"s a little easier to buy a home now, say local Realtors.
Smithfield
"This is a very nice town located in the center of Rhode Island with great highway access," says Realtor Dave Miles. "The slowing of the pace of price appreciation is actually a great sign of being able to sustain the market and not have it top out. There are many mixed signals out in the market right now. New housing starts were down, but the pace of re-sale homes was up again. The Pending Home Sales Index from the National Association of Realtors was very strong for March. Interest rates have gone up from the absolute lows of 2004 but are still at historically low levels."
Miles muses, "The increase has given some buyers cause for concern, but I do not believe we are going to see a big jump in rates as some are predicting. The price of oil has had an impact on the economy, and consumer confidence declined for the first time this year. Where does all this leave us? I believe we will continue to see some price appreciation but not at the double digit pace we have seen for the last four to five years. This means sellers have to be more realistic in their pricing, and buyers will be able to negotiate a little more than in the past. I am still seeing many homes hit the market with unrealistic asking prices and this has had some effect on the overall pace of sales locally, as well as average time on the market. The homes that are over-priced are not selling. There is still no evidence of a real estate bubble that many people have feared. The ingredients for a bubble burst just do not exist today."
Charlestown
"Barrier beaches, and easy access to Providence and New York," says Realtor Ed Lefkowicz, "make Charlestown popular. As of April 3, there were 46 single family homes on the market, up a few from a month ago, and still well down from a recent high of 61 on October 1. The price range was $269,900 to $4,900,000. The average list price was $551,380. Sales for March were nearly triple February sales, at 13 properties, ranging from $229,500 to $1,125,000 at an average sales price of $539,554 (at about two percent under over the listed prices), and a median price of $397,000. On-hand inventory is at a more normal 3.5 month"s sales. Looking back, March sales were well over average monthly sales for the past six months."
Lefkowicz explains, "The condominium market is very small in Charlestown. As of April 3, there were no condos available for sale; none sold in March. No parcels of land sold during the month, and there are 13 parcels currently on the market, ranging in price from $190,000 to $5,500,000 (this last price for over 33 acres). The usual definition of a luxury house is one in the upper 10 percent of the range of prices realized. That figure here is now about $942,000, based on sales over the previous six months. The six luxury homes which sold in the last six months averaged $1,404,834 (a little under asking prices), and were on the market an average of 149 days before they sold. There are currently 13 luxury homes on the market in Charlestown, ranging in price from $949,000 to $4,900,000."
He asks, "Is this a good time to buy in Charlestown? It"s a small market, and inventory is down from recent highs, and demand is up, so buyers should expect competition. Is this a good time to sell? Clearly, yes."
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