It's been a terrific summer for Newport, RI's Hogan Associates Real Estate. In September we broke all of our own records for contracts and sales, and we represented the happy new owners of Daybreak, a waterfront home on 6 beautiful acres in Jamestown. At $6,400,000, it was the highest sale in RI this year but also one of the most highly discounted selling for $3,100,000 less than the original asking price, which just goes to show you, there are bargains to be had in all price ranges.
In addition...Ta Da! Our new real estate office at 129 Bellevue Avenue in Newport, RI is open and ready for business! It's great to be on The Avenue right in the thick of things. As I rearrange the office furniture
The charts below provide a snapshot of Newport's Single Family Real Estate market for the 6 months ending February 28, 2011. For those of you thinking about pricing your homes for spring, this is important information to consider. If you would like a similar report on your town, just give us a call.
The New Normal seems to be on the wane. Reports of Black Friday scrums suggest the retail sector is gaining strength. Could the frugality of the last two years be giving way to looser purse strings? Could be, as Americans have paid down debt and boosted savings rates from 1-2% prior to the recession to 5.7% in October. So, what does this mean for Newport's real estate market, and how will it influence what happens in 2011? Here's my take:
We're unlikely to see a Black Friday frenzy for RI real estate. While consumers feel better about smaller purchases, sales of durable goods like cars and appliances (and homes) are down. Like other parts of the country, real estate inventories are high here, and it's still hard for many buyers to
The Wall Street Journal online has an cool housing stress map (link below) that shows the relative distress of cities and towns across the US. It takes into account the percent of mortgaged homeowners spending 30% or more of household
income on owner costs, the percentage of the population not working and
the percentage of the population without health-insurance coverage. Rhode Island's level is 81, just under the mean of 87.5, which is virtually the same as Massachusetts and the other New England states.
The data was collected in 2009, so it's a little out of date. Still, in the face the daily news broadcasts about our abysmal unemployment rate, it's encouraging to know that our stress levels are about average. Perhaps, as a result, we will
We've got several fab, fab, fab condos for sale in Newport - with everything you've ever dreamed about - water views, lots of space, close to beaches - and they're available for, well, some pretty good numbers. Here's a little info on the top quartile or higest priced condos in Newport illustrating the market forces at work here. Prices are up a little, but price per square foot is trending steadily down. Translation: more space, less $$. If you're a buyer, this is just a little more evidence that the wind is REALLY at your back right now on the luxury condo scene. Life is short; markets are hard to time; you can't buy happiness, but you can make a place and invite it in!
Note: This blog post will get old, but the chart will update weekly, so check
RI mortgage rates are lower than they have ever been in recorded history! Your savings over time will be enormously higher than the $8,000 tax rebate. As of today, August 20, 2010, the current average rate for a 30 year fixed loan is 4.75 percent, and the 15 year fixed rate is at 4% (view full post for chart). The stimulus package was nice, but the money you will save by financing at these rates is nicer. Consider this example: if you bought a house for $300,000 last year and financed 80% at 6%, your interest payments for the first 3 years would be $42,402. Three years of interest payments for the same purchase today at 4.75% would total $33,411. That's almost $9,000 less, and these savings continue for up to 30 years. So don't feel bad about
Here's a quick look at what's happening in Newport in with our most expensive properties. This graph represents the top quartile of listings in Newport - in other words, the most expensive quarter of the market. Inventory is about 15% higher than it was last fall, but prices are adjusting down creating opportunities for buyers in the market for an upscale home. If you've been on the fence, this might be the right time to make a move...
P.S. Our research is updated weekly, so check back often and keep your finger on the pulse of things.
The chart below represents Newport's single family market over the last 6 months. According to Statewide MLS data, an average of 17% of available single families are going under contract each month and an average of 8% are selling. If you're a seller it's important to understand that it will take some time for this inventory to be absorbed. If you're a buyer, well, you could be forgiven for thinking it's too turbulent to jump in, but when the pendulum swings (and it always does...) I predict you will look back longingly at this chart.