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New construction on the uptick!!!
An upward momentum shift in new home construction is a great thing; for the deficit in available housing is a real thing both on a national and local level. The fact that at the onset of 2020, the US was short roughly 3 million units in housing is one that is very hard to overcome. Chipping away at the deficit by “chipping away” at the earth via new builds is an extremely exciting notion. When you factor in the cost of land, the increase cost in raw materials by 150%, permit challenges, the lack of land developers, land AND lack of labor and then the onset of a pandemic, it comes as no surprise that the lack of new construction is significant AND widespread.
Care for a bit of optimism? Click on the link below for a great read by Keeping Current Matters about what is fueling the promising notion that new construction is and will be trending upward!
Are We in a Housing Bubble?
It’s one of the many questions I answered yesterday while being interviewed on GoLocalProv during an interview about Rhode Island real estate. It’s a topic high on the radar of many buyers and sellers nationwide. For buyers who are daunted by this incredibly escalated market, many wonder if they should “wait it out” or worry they will end up “upside down” if they buy high and then the market crashes later. For sellers, they pose the question wondering if pulling the trigger now on selling is needed, before the market “crashes.”
So what does “survey say” on the crashing of the market hypothesis? They say “Not likely” and this gal believes it to be so. There simply are too many factors at play that are different than when the market crashed before AND factors that show NO signs of lessening their influence. Home prices will continue to appreciate and here’s why. What is playing out right now in markets nationwide comes down to supply and demand. In a nutshell, ( or a Rhody clamshell) we have a demand that is SKY high for housing and an inventory that is extremely depleted. As I learned in Econ 101 at Brown, low supply and high demand escalates prices. It’s that simple. And when the need is multilayered and being fortified by a constant element that shows no sign of waning? Well that supports the upward trajectory of appreciation which looks to stay very much on course.
So what are the factors at play that thwart the notion that the market will “crash?” Let’s drill down on it…..
- The strong demand for housing looks sustainable. Even before the pandemic, demographic shifts and historically low mortgage rates had pushed demand to high levels. Dare I mention the 3 million unit shortfall we had in the US in terms of housing units as we entered 2020 and the multitude of factors impeding new construction? To compound the impact of the lack of housing issue is the fact that consumer surveys have recently shown that household buying intentions are the highest they have been in 20 years.
- Millennials, who are the biggest demographic cohort in history, are entering their 3rd decade which is the PEAK household- formation and home-buying stage of life. They want and need homes; larger homes that support families and yards for the dog that so many adopted during Covid. They need to leave the apartment they’ve rented or that first starter home and buy a larger home. This incredible demographic tailwind “fueled ” by the Millennial migration to homes in the burbs is placing a HUGE demand on housing supply nationwide.
- Tight mortgage lending standards are in place which bode well for home prices. Buyers are put through more rigorous standards and regulations now, vs the precursors of the crashes before and thus are well fortified and “fit” to successfully finance their home purchase.
So while the predicted uptick in interest rates could slow the level of appreciation the upward trajectory remains very much on course. If you have questions about the market or how you can successfully play a role IN it, please do reach on out. I am here to help!
From the best spots for sunsets to the best “digs” for donuts in the Ocean State!
Rhode Island sunsets are ones to savor. I make it an almost weekly activity to seek them out to capture and internalize. We are replete with countless great spots to capture them here in Rhode Island. My favorite areas are a few hidden spots in Barrington; one of which is featured in my preview image, and the more public spots like the Barrington beach! The late winter, early spring sunsets at Barrington Beach are magical! Perhaps they seem so vibrant because I am so desperate for sunshine and light and warmth at that time of year!!! Truth be told, I thought Rhode Island was the sole winner in the stellar sunsets competition but this past winter, I learned of another AMAZING location to catch sunsets. Now this area is more than your “pack a snack per bridge crossing” type of distance since it is ALL the way up in Seabrook, NH but rest assured it is worth the trip!!! While spending 6 months up in Seabrook in a tiny 2 bedroom beach hut with 2 large hockey players I made it my JOB to catch every single sunset that I could. I dressed like it was Antarctica, grabbed my phone and hit the beach. Worth it every single time. In fact, I have never seen a sunset that wasn’t “worth it.” I am a huge believer in relishing and cherishing each day and sunsets to me are vivid reminders of just how magical each day we get to receive, truly is. Eager to get the inside scoop on some of the best locales in RI to catch the sunset? Check out this great article in the Providence Journal for the details.
Now along with the sunsets we also are in “Boss Mode” with all things food-related. Whether it’s Federal Hill for Italian or the new food emporium “sprouting” on Sims Ave near India Point for all things fresh and local, PVD and RI as a whole have a plethora of amazing dining experiences to take advantage of. Whether it’s seafood in Bristol, Narragansett or Galilea or steaks Downtown, or plant-based delicacies at Plant City PVD or Rhody Roots in Warren, there is something to satiate every palate here in Little Rhody. Have a hankering for breakfast treats? Try the crepes at Cafe Water St in Warren, like my family did this morning or head to Bagels Etc in Barrington or PVD Bagel for incredible bagels and morel! Are donuts calling your name? Well then head to the following link to get your fill! https://www.providencejournal.com/story/entertainment/dining/2021/06/12/5-delish-donut-shops-range-old-school-gourmet-ri/7626146002/
Stay well friends and keep shopping, dining, and supporting local and make time for those sunsets!!!F
“Baby, Light My Way”……
Exciting news about a plan to light up the rusty Crook Point Bascule Bridge that’s been frozen in time in an upright position for decades. It’s an image that is emblazoned in many a native Rhode Islander’s mind and heart with many wishing it would come down and others, like myself regarding it with fondness due to its quirkiness and its nod to the olden days and the warmth that feeling of familiarity creates. To me it’s “up there” with the Big Blue Bug on 95 and the pineapple that welcomes you to Federal Hill; a trifecta of symbols that scream “pure Little Rhody.”
To come up with a plan to do something with this iconic image, an 11 member jury reviewed entries in a contest held to elicit a design plan. The one that “outshone” the others, not only will light up the bridge but more importantly the areas and communities around it. Plans are in the works for parks on both sides of the bridges, an enclosure at the mouth of the East Side Rail Tunnel and a canal crossed by mini bridges on the east bank. After just learning yesterday about plans in the works for an incredible new restaurant called Honeybird to open near the Henderson Bridge nearby, I see great things happening in this area which spans from the East Side over to East Providence.
To those with the desire and the fire to “think outside the box” and proactively come up with a vision for a RI element that has remained stagnant for years??? This native Rhode Islander leans on Bono in saying “Baby, Light my Way…….the Rhody Way!”
Are you ready for summer adventures in RI?
It’s been a long time coming. We’ve waited long and hard for just a glimpse of the “yellow” light to live a little, to socialize, to explore, to get outside of our homes and into nature, into this beautiful spot we call Rhode Island. For the past 16 months many of us have felt like the day would never come. Would we ever be able to go to the beach again or to a bar or to a concert? When would be be able to experience the feeling of getting into your car at the end of the day sunburned and salty, spreading sand beneath all the seats in the car during the ride home? When would we be able to hop on bikes, hit the East Bay bike path and grab a medium watermelon from Del’s with a pretzel stick propped in the cup? We questioned if it would return. We worried that it may not. We are skeptical now that it is “here.” Heck I still WON’T believe I am going to my 17th DMB show until I am at the Dave Matthews concert with a Bud Light in my hand. Only then will I truly believe it.
Be that as it may, we DO have the “go ahead” to get back on the ice….to live like we love living and gosh darn-it we need to do it with pure passion and reverence. Now more than ever we realize that the multitude of “gifts” we have right here in Little Rhody are truly remarkable and precious. Born and raised here, I’ve been blessed to be surrounded by the natural beauty forever yet its impact on me is still felt daily. Whether it’s the rise and fall of the tide here in the Barrington harbor or the quaint , neighborly vibe of Water Street in Warren, I am cognizant every day of just how replete with beauty this tiny, “37 by 48 miles in size” little Ocean State is.
With our food scene being on par in the “amazing quotient” with that of our coastline and our charming vibe, I implore you to take on the challenge of engaging in as many dining adventures as you can. The wait has been longer than that of getting your number called at the DMV and by golly YOU deserve to dive all in to that which sweet Rhode Island offers.
So take always inspiring Providence Journal food writer Gail Ciampa’s lead and get after it Rhody Style!!!
It’s a bit like the Wild West in the RI Real Estate Market!
This real estate market is indeed like the “Wild West” as referenced by this timely article in today’s Journal. It’s a market requiring both buyers and sellers to grab ahold of the reins tightly for it’s a market of high velocity and one in which the risk of getting “spooked” is real. It’s a market that requires clever, creative , protective yet appealing and strong offers on behalf of buyers ; especially when buyers are sellers.
With homes receiving multiple offers by day three the question of where will the seller will go is a real one as is the anxiety associated therein. It can be done however and is being done via rent-backs and the “subject to sellers finding suitable housing” addendum. It can be done with relative ease in a market where the transaction time period has been accelerated , inspections are waived / minimal and appraisals are being ordered efficiently. I listed a house recently and on the day we went under contract my sellers submitted an offer on a home they fell in love with the day prior, while I was on day two of 30 showings on their home. We went under contract and immediately made an offer on the other home. Offer accepted. Knowing we had strong buyers on our end with limited contingencies our offer, with strong terms AND a Hubbard was accepted. Can it be done ? Yes! The result of which is elated sellers who are also buyers ! It’s a beautiful thing!
Click the link below to learn of some of the measures sellers and buyers are taking to maximize the “attractiveness” of their offers in this crazy market!
Market Value vs. Market Price. Do you know the difference?
In real estate, many agents suggest that it all comes down to price. It is true that a property sells just because of price? What about the value component? As a Realtor I will determine a market price without viewing the property based on comparables and market data. Then I determine a market value once viewing and assessing all the benefits, the condition of the property and external market data. The two terms definitely influence each other.
Market price is what a willing, ready and able buyer will pay for a property AND what a seller will accept for it. The transaction that takes place determines the market price, which will then influence the market value of future sales.
Price is determined by local supply and demand , the property’s condition and what other similar properties have sold for without adding in the value component.
The major difference between the two is that market value, in the eyes of the seller, may be much more than what a buyer will pay for the property or its true market price. Value can create demand which can influence price. But without the demand function, value alone cannot influence price. As we are seeing in our current market, as supply decreases and demand increases, the price will rise and value will influence price. Interesting to note that in a balanced market, market value and market price and be equal.
5 design moves that Christina Haack from HGTV’s “Flip or Flop” has ditched in favor of some hot new style moves…..
I love all of that which she has ditched!!!
Christina Haack of “Flip of Flop” reveals 5 older trends (which may or may not be witnessed at the Huard household) that could stand to be left behind and replaced with some more appealing finishes! With so many homeowners choosing to improve their current living situation via a move or a renovation, these tips are timely and useful. They are also rather moderate in nature which heightens the “do-ability” factor. It’s one thing to admire a trend that is attractive and appealing and it’s another to know that it’s obtainable! Click below to read the article featuring 5 trends that perhaps you want to put in the rear view mirror much like the past 16 months! Stay well and reach out to me for any real estate advice or assistance! I love what I do and I’m here to do it for YOU!
https://www.realtor.com/advice/home-improvement/check-out-christina-haacks-changing-style/
The RI real estate market “temp” is on par with the elevated temps we are enjoying there in the Ocean State. SPF 70 required!
It’s front page news and “front and center” for buyers and sellers engaged in this high velocity real estate market here in Rhode Island. Homes being listed competitively are closing at prices well over asking. Multiple offers with minimal contingencies ruling the day for buyers eager to hear those ever elusive, highly coveted “Offer Accepted” words.
With 6 closings upcoming I can attest that there is nothing “slow” or moderate about this market. The Providence Journal released an article highlighting just how elevated and intense this market is and it shows no signs of slowing down. The lack of inventory is not likely to change significantly enough to make an impact, for quite some time. Between the cost of materials to build, and the “catch 22” of folks having nowhere to move to, it will be a while before this market moderates. Experts are predicting continued strength for at least the next two years before it moderates. With loans being more strictly regulated AND the advantageous interest rates, buyers are very well fortified as contenders in this seller’s market. They are well qualified and they simply can afford “more home” due to how low their monthly payments are. So while prices are sky high, buying power is also at an all-time high.
It’s a market where agency of utmost competency is key and pure fortitude and drive is needed on behalf of agents and their Realtor. While it may take more offers than before, winning bids to get that home you desire is most certainly doable and this former athlete runs on pure compete!
Meet Matthew King of Taco Box Trailer in Warren, RI. Huge small business love felt by this Realtor and resident
Sponsoring the Parkbench
https://parkbench.com/blog/taco-box-trailer-food-drink-barrington-matthew-king
