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A brisk month of activity in RI real estate for December 2019
It was a brisk month in RI real estate for the month of December! Here is a recap of the single-family home statistics for December 2019 as presented by Mott & Chace Sotheby’s International Realty for December 2019. The median asking price for new listings increased by 9.2% and the median home price of sold listings increased by 8.1%. The supply decreased from 6 months to 2.1 months when compared to this time last year. In addition, the average DOM ( days on market) decreased by 3.6% in December 2019 when compared to last year. Please click on the link below to read the detailed report and please reach out to me if you are thinking of buying or selling OR have a colleague, friend, neighbor or family member thinking of making a RI real estate move in 2020. I’d love to be of help!
Bullish on Moving…….
It’s a term my beloved dad loves to use to express enthusiasm and one I saw used in Realtor Magazine to reflect the current “mood” of many buyers across the US right now. To say many are “bullish on moving” is a great use of this much-loved expression!
Based on results from a recent NAR homeownership survey, 63% of buyers are feeling that now is a great time to buy. Moreover, 74% of sellers surveyed feel that now is a great time to sell. The universal tone of optimism clearly is resonating in the real estate market as we launch into 2020.
Low mortgage rates and a belief that the economy is improving are key players in the recent igniting of the real estate market. I’m witnessing it here daily with a phone that won’t stop ringing and daily home searches in the dozens being done for clients ready to buy. A recent post I published revealed that the supposed spring market is starting earlier and earlier with each passing year with many in fact beginning their home viewings ( in person, not online!) now, in January!!! This is a trend not only happening in RI but nationwide.
Another trigger for the rise in buyer activity is the length of homeownership. Up until not long ago, the average homeownership was 7 years. It then shifted to 13 years. Well, those homeowners are now ready to bite the bullet. While it’s a great time for first-time homeowners to buy its also a great time to buy for those looking to finally downsize. In fact, older adults, born between 1925 and 1945 .appear the MOST eager to buy at a whopping 73% while baby boomers, born between 1955-1975, are the second most “ready” subset of buyers to make a purchase. While many feel home prices will continue to rise, low mortgage rates, a strong economy, lower unemployment and a rising inventory are creating an active and robust real estate market here in RI and nationwide; especially in the western half of the US. Whether you are looking to downsize, buy your first home and/or sell your home you’ve lived in “forever”, this RI Realtor would be delighted to be of assistance. In fact, she’s “bullish” on advocating for her clients and on RI real estate!
Buyers have a well defined sense of what they want in their next home!
What’s trending amongst buyers in the real estate market? It’s buyers who come in knowing exactly what they want; especially amongst the Millenials. Rooms with a specific purpose are MUST-HAVES especially those of the laundry room, dining room and exercise room “kind”. Thinking of buying a new home? Reach out to me and I will happily send you possibilities that meet all of your “must-have” criteria and then some!!! Click on the following link to see which speciality rooms are the hot commodities for 2020!
Launching into the new year with a solid economy behind us!
2019 was a year of great returns for those who invested in the stock market and those who invested in real estate or purchased or sold properties. With low mortgage rates, it was an ideal year to purchase a home despite the low inventory nationwide. For those selling a home, returns were also consistently high with the majority of sales coming in at a 97% list to sale price return. With mortgage rates projected to stay low for the foreseeable future and the passing of a higher conforming loan limit by the FHFA for 2020, buyers will be presented with a greater array of loan options to satisfy their buying needs thereby increasing buyer demand in 2020. If inventory, particularly in the entry-level price point bracket can increase significantly, the year ahead in real estate will shape up to be another banner year.
For the economy as a whole, it may be tough to beat 2019 stats for it was a year in which the US economy in fact outperformed expectations and broke from recent trends by a significant margin. While the GDP for 2019 was predicted to grow in the first four quarters by 2.0% it actually grew by a compound annual rate of 3.2% in the first three quarters. Similarly, while unemployment was predicted to decrease by .1 % it actually decreased by .4 % to a near 50 year low of 3.7%. Furthermore, employment growth averaged 223,000 jobs per month in 2019! So has the bar been set high after a banner year economically in 2019? Yes, very much so. Will we continue on this path economically as a nation in 2020? Some are skeptical as seen in the article below. In real estate, however, the majority of national market forecasters and this LOCAL RI Realtor feel confident in stating that 2020 looks to be a great year to be involved in real estate in the Ocean State. With several listings of my own set to pop in the early spring all over RI and dozens of buyer searches being done daily for my clients, I can attest that RI real estate will be strong and lucrative in 2020 and I am ready for it!!! Please reach out to me if buying or selling real estate in RI is on your 2020 vision board! I’d love to jump in and guide you along! Happy New Year to all!
It’s time to Tread on in the Ocean State !
Part of what I love about being a Realtor in my home state of Rhode Island is being about to introduce all my clients to the multitude of amazingly beautiful areas we have in this small state. We bost over 400 miles of coastline to visit , countless local restaurants to try , beaches to explore and trails to hike ! Here are some great paths to put on your “must tread list ! Thinking of moving to R.I. or within R.I. ? I’ve lived all over and am happy to show you around ! Maybe we can sneak in a hike while we are house hunting !
A snow day in RI has me thinking of ski properties as investments !
As we embrace the snowy, icy conditions in coastal RI today my mind travels to those truly “snow decadent” spots across the USA that beckon the inner skiers in many native New Englanders like myself. Those raised as skiers in the mountains of NH, VT and Maine often wonder on days like today of what owning a ski property would mean both as an investment and as a personal enjoyment piece. I work with many investors and therefore am always seeking out knowledge and information to assist my urban investors. Days like today however have me thinking of the inner skier in so many of us who just MAY crave buying a ski home as an investment property.
Ski communities have and continue to be prized locations for investors. Each ski town has its own pros and cons as well as location-specific regulations regarding rental practices. After spending time choosing the ideal location your “step two” then becomes one of gaining insight on the rules and regulations of that specific rental market.
Wondering what the “best” option is this year for a ski property investment? Well according to vacation management company Vacasa, the “top cheese” is Killington, VT! A recent report by Vacasa showed an aggregate cap rate of 8.31% in Killington!!! The aggregate cap rate is the ratio of a properties’ net operating income over its cost and this my friends is a very strong cap rate!!!
Aside from looking at potential cap rates what else should you consider when buying a rental property? Well, top of mind should be factoring in what buyers and renters are looking for. For a ski resort property, a good place to ski is quite obviously of prime importance and a key ingredient to that is a place that has very good snow. Second, on your criteria of what to look for should be amenities. Future buyers ( should you look to sell later ) and renters want amenities and accessibility to recreation areas. The third criteria to consider are the places that offer both summer and winter activities like Breckinridge in Colorado. This way owners can rent out the property during ski season yet can reap the benefits of owning in the warmer months.
The best advice I can offer when considering an investment purchase is to reach out to a real estate professional. Due to the complexities of ski town real estate, local regulations and rental market rules, its best practice for an investor to work with a real estate professional who can help you navigate the tricky regulations that govern properties that double as both rentals and second homes. Reach out to me if you are considering buying a ski house as an investment. I have valued colleagues located in all of the top ski communities who I can connect you with. Before you know it you could not only be bringing in a “blizzard’s worth” amount of income but you could also be skiing in tuck position down the well-groomed trails in these ski country wonderlands!!!! Happy Winter !!!
Ready for some 2020 real estate market predictions?
As we end what has been a very productive and strong real estate market in RI for 2019 we start to shift the lens to what lies ahead in 2020. While the 2019 real estate market was characterized by historically low mortgage rates, low inventory, huge home price growth and affordability issues, we look toward 2020 to look for any shifts, disruptions or consistencies. Watching the local and national market and our local, regional and national economy is something I do daily. It’s only by studying the latest numbers that one is best prepared to show a strong “face” in today’s market whether buying or selling. Providing my clients with constant, updated stats and data is an essential ingredient to the service I offer to each and every client. Knowledge is power and is a key ingredient in promoting my client’s homes or their offers to purchase with a competitive eye; something this former athlete is driven to innately. Click on the link below to learn about predictions for the 2020 market made by 6 “heavy hitters’ in the real estate community. As always I would love to offer any assistance that I can no matter what your real estate needs are now or will be in 2020. Happy Holidays and here’s to a great 2020!
Specialty rooms coveted by many of today’s buyers!
What’s trending amongst buyers in the real estate market? It’s buyers who come in knowing exactly what they want; especially amongst the Millenials. Rooms with a specific purpose are MUST-HAVES especially those of the laundry room, dining room and exercise room “kind”. Thinking of buying a new home? Reach out to me and I will happily send you possibilities that meet all of your “must-have” criteria and then some!!! Click on the following link to see which speciality rooms are the hot commodities for 2020!
There is no greater gift than giving back
What an honor to have my firm feature my recent service project for City Year as the weekly “Give Back ” blog by MCSIR. I’m grateful to represent a brokerage that truly values giving back to the city and state in which we “serve ” as Realtors. For me , every day in real estate is a day in which I can help others and there is nothing I find more rewarding than that. As a City Year alum , who was part of the very first City Year corps in Providence the year after I finished at Brown , helping others is truly why I am here.
Please click on my video highlight of the day below and the MCSIR feature of the event Happy Thanksgiving !
https://m.youtube.com/watch?v=94GPswkg-uQ
https://www.mottandchace.com/blog/2019/11/22/givebackfridays-city-year/
Top 5 Trends in Real Estate
Staying aware of what is trending in real estate is the best practice for buyers and sellers alike. Knowing what areas are hot, what features buyers are seeking and what is to come in the buying and selling forecast is key information for buyers and sellers everywhere. Keeping my clients “fueled” with an ever-building and always current knowledge base is one of my main priorities in my agent-client relationship. I’ll share with you 5 trends that are surfacing right now nationwide and ones that are likely to affect our immediate locale.
The first is expensive vs. expansive cities. “Expensive “markets like San Francisco, Seattle, LA, Boston, NY and Miami typically feature geographic borders like oceans or mountains that prevent outward development. They also typically have rules and norms to limit the development of agricultural land as well as a local land-use policy that tightly caps the addition of new homes in developed areas. When you combine the limiting geography with the policy you can see why home values in these areas are quickly driven up.
Conversely “expansive” markets like Atlanta, Austin, Phoenix, Dallas and Houston offer plenty of room for new developments on their periphery keeping supply abundant and home values affordable.
The second trend we are seeing is what’s being referred to as the “coming of the silver tsunami”, referencing the ageing out of baby boomers and a resulting uptick in available housing. Retirement communities will feel this effect the greatest yet cities will feel it too. In the next 20 years over a quarter of the nations currently, owner-occupied homes are likely to hit the market. Obviously this will change the way the housing market looks in the next 20 years.
The third trend is downsizing. Many folks in our local area are quickly seeing the upside of downsizing. Ageing baby boomers are fueling the demand as many look to downsize to a maintenance-free lifestyle without having to leave their current area and/ or their family and social ties. For the sellers in our area homes that feature first floor bedrooms, wide entryways, lack of excessive stairs and close proximity to health centers are and will continue to be highly sought after home characteristics.
The fourth trend is first- time home buyers looking for their forever homes. It used to be that first-time homebuyers would look to purchase a first home typically low in their price bracket, close to shops and restaurants and their workplace. Now first-time homebuyers are typically older ( many having waited longer to get married than before) and more established with their careers. Many have been forced to wait to purchase longer than we’ve seen in the past , due to the cost of housing in expensive markets, rising college debt and fewer starter homes. Many simply have missed the window to starter homes and now are skipping that step and launching right into “forever homes” Great news for homeowners in the suburbs, ( an area rising Millenials are craving more and more) who offer 3-4 bedrooms and flex spaces which can support the toddler phase up to the teen “hang out “phase. Suburbs located in close proximity to cities or public transit to bigger cities that feature homes that match their “long term living” criteria are extremely attractive to this ever-emerging group of buyers.
Finally, the last trend we are seeing is the emergence of larger investors like institutional investors. What we have seen is the emergence of institutional investors who are not buying just one property as an investment but 2-3 at a time. This is particularly appealing in cities that offer relatively affordable properties that they can fix up and then rent out. I’ve seen this start to happen in Providence with even individual investors who have me searching out 3-4 properties they can buy as investment properties.
Real estate truly is an ever-emerging, always involving industry and it’s one I simply relish. Keeping abreast of all the local market insights and trends as well as those on a national level enables me to keep my clients on the top of their game whether they are buying or selling or both and THAT is my main objective and my biggest source of reward….. a “victorious” client!!! Please reach out to me if I can be of any real estate help! I truly love what I do!
