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        <title>Newport RI Real Estate Blog</title>
        <link>https://www.hoganassociatesre.com/blog/tags/real-estate-market/</link>
        <description>Read Hogan Associate's take on real estate trends and life in Newport, RI.</description>
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    <guid>https://www.hoganassociatesre.com/blog/newport-real-estate-market-in-2014-and-what-to-expect-in-2015.html</guid>
    <link>https://www.hoganassociatesre.com/blog/newport-real-estate-market-in-2014-and-what-to-expect-in-2015.html</link>
        <author>jeff@hoganri.com (Jeff Brooks)</author>
        <title>Newport, RI Real Estate: 2014 Recap &amp; Expectations for 2015</title>
    <description> <![CDATA[ 
2014 was another great year in real estate, not only in the US but here in Newport Rhode Island too.  A booming economy, stock market appreciation and a surprise in the mortgage industry with interest rates returning to low levels instead of rising, were just a few highlights of 2014. Here’s a quick recap of 2014’s Real Estate Market;


US Real Estate Market Conditions


The Case/Shiller Housing Index increased 4.5 Year over Year from October 2013 through October 2014. That’s a drastic slow down compared to the 13.6 increase a year earlier. As anticipated (see last year's recap) the price appreciation slowed down. The slowdown in price appreciation had more to do with the market equalizing, than with rising rates as previously predicted.  2014 was the year both buyers and sellers realized we were out of the depths of the housing crisis, but that we still have a ways to go.  


Existing home sales have continued to stay healthy, but are slowing down. In November, NAR reported existing homes sales volume was up only 2.2 over the past 12 months.  That’s a far cry from the 7.9 change from 2012 to 2013.  The news may say this is still a low number, but we’re finally in the range of sales volume we need for a healthy market to continue.


Newport Real Estate 2014;



Single Family Homes:


Newport single family home sales were steady through 2014. The median sales price increased more than 6.9  Inventory stayed relatively flat throughout the year, with volume up only 2.13. The Sales Price to List Price discount widened over the course of the year, but finally started to contract in the 4th quarter. This was due to accelerating list prices with sellers testing the market, then accepting a lower, more marketable price from buyers.   Days on Market continues to climb as sellers continue to feel more confident in the market and hold out longer for a better sales price. But inventory priced well is selling very quickly, many in less than two weeks.



Condominiums: Condos still lagged behind the single family market in Newport.  Though the absorption rate increased to 14 months from 11 months and sales volume declined by more than 11, Median sales prices were still up over 10 year over year This is most likely due to the increase in condominium projects across town over the past 2 years, while demand for condos in town continues to grow.  As consumer confidence in real estate continues to improve, the condo market will benefit directly.  2015 will be a much better year for condominiums in Newport.





Multi Families: The Multi Family market in Newport is in flux. Sales prices over the past year sky rocketed another 27.5 This is on top of the 23.4 increase the year before. That said, the absorption rate is up to 11 months from the 7 months of inventory we had in November 2013 suggesting some weakness there. This may be the result of higher inventory and owners listing at high prices, hoping to fetch a premium. 


I see price appreciation slowing down in 2015, which we can see as a good thing, steady growth trumps booms and busts. “Good inventory” will continue to see strong demand with investors seeking assets with higher yields than US treasuries. Reasonably priced inventoyr will sell incredibly fast - often in less than a week. So if you’re a buyer in this market, be ready to jump at a moment’s notice.


2015 Predictions;


Though most economists predict higher interest rates in 2015, the housing market should remain steady with some moderation in single family price increases.  Volume will stay even. High end real estate may see a slight slowdown due to the sky rocketing dollar making homes in the US less affordable to foreign buyers. If the rising dollar causes the FED to delay an interest rate increase due to deflation fears, we can anticipate another great year for US real estate with mortgage rates under 4.25.


All in all, 2015 promises good things for Real Estate assuming no major economic or geo-political events. 2015 will be the year both buyers and sellers view the market as a “good market” with increasing consumer confidence, rising incomes and lower unemployment.  Let’s see if my predictions prove true for another year. 
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    <pubDate>Tue, 20 Jan 2015 21:31:00 -0500</pubDate>
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    <guid>https://www.hoganassociatesre.com/blog/buying-to-flip-a-few-things-to-know-for-a-diy-project.html</guid>
    <link>https://www.hoganassociatesre.com/blog/buying-to-flip-a-few-things-to-know-for-a-diy-project.html</link>
        <title>Buying to Flip: A Few Things to Know for a DIY Project</title>
    <description> <![CDATA[ 
BEFORE


 


Here’s a happy house-flipping story to start your weekend off right. 


Fixer-uppers are not for everyone, but this little gem in Middletown is a Cinderella story worth sharing:




It started with a closing on a sad little house in need of major TLC. It ended 2 months later with a 7-day listing, a full price offer and an exhausted, but happy Seller.


Time and Effort are the life blood of flips. They must look brand new. When they do, people buy them. It’s that simple. If you plan to do it yourself, get ready for some aches and pains. If you do it right, however, the rewards can be great.


Location is key for a successful flip. This one was on the Middletown Newport line near parks, restaurants and coffee shops. Once the location checked out, we calculated the cost of the work. After running the numbers we knew it could work for our Buyer, a serial do it your selfer who had the skills to do much of the work himself.


AFTER


So the moral of the story is if you’re not afraid of REALLY hard work, you have a knowledgeable agent to help you buy at the right price AND sell at the right price, you could have a happy ending too


Call us anytime. We’re good at this. Really.


 ]]> </description>
    <pubDate>Fri, 11 Apr 2014 12:43:00 -0400</pubDate>
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    <guid>https://www.hoganassociatesre.com/blog/newport-real-estate-market-report-2013.html</guid>
    <link>https://www.hoganassociatesre.com/blog/newport-real-estate-market-report-2013.html</link>
        <author>jeff@hoganri.com (Jeff Brooks)</author>
        <title>Newport Real Estate Market Report 2013</title>
    <description> <![CDATA[ 
Real Estate in Newport RI, much like the rest of the country, had a great year.  But how did Newport fare alongside the rest of the nation?  Here’s where we stand on 2013.  


Nationally and in Rhode Island:


The Case/Shiller National Index, an index of national home prices, experienced a 10.06 increase year over year through September 2013.  That’s the largest 12-month gain since March of 2006  Rhode Island median home prices appreciated 10.48 with an 18.9 increase in volume The increase in volume is a strong sign of a strengthening market.   


 Single Families – Newport, RI







 Newport’s median price appreciation lagged behind the national and state average with a price increase of only 2.1.  That said, Newport dwarfed the rest of the state with a whopping 25.9 increase in the number of single family homes sold since 2011. 


Multi Families – Newport, RI



Newport sales volume is up 51.8 As mentioned in my blog from last year, we’ve certainly made a turn and volume is the indicator. The increase in volume coupled with slower price appreciation shows just how strong and healthy Newport’s market is by maintaining steady prices while still increasing volume.


 The Newport Multi Family market has boomed this year with investors seeking higher yields on their money.  Volume is up only 5.9 for this year, but since 2011, volume has increased 63.3.  Median sale prices for Multi families went through the roof this year - up 23.4 It looks like investors are willing to stomach a smaller return on their investment to take advantage of cheap financing and inexpensive inventory.


 Condominiums – Newport, RI


 Newport Condominiums have been on a steady increase with a price appreciation of 16 and volume is up 12.2.  This trend suggests strong improvement in the second home market - great news for home owners here in Newport


 What to expect for 2014


While inventory was the real estate catch phrase in 2012 and 2013, interest rates will be the driving factor in 2014.  With the FED’s tapering of Quantitative Easing starting in January, interest rates will climb steadily in the near term.  This rise in rates will slow down national price appreciation but not completely stop it.  I feel volume will continue to rise as people take advantage of the still historically low rates.  While 2014 may be a plateau, it will still be an excellent time to buy, and all indications point to another great year for RI real estate  If you’d like to take advantage of market conditions now, call or email me or any one of our highly qualified agents. 




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    <pubDate>Tue, 14 Jan 2014 19:47:00 -0500</pubDate>
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