Cautious optimism: A strong real estate market in Rhode Island - by Jamie Moore

Jamie Moore, Jamie Moore Appraisal Services

It’s finally back – a strong real estate market in Rhode Island. We just realized a record-breaking first  quarter 2016, noting higher values than any other first quarter in the prior three decades. The median  sales price of $225,000 is an increase of 12.5% and the number of single family sales (1,906) is a nearly 15% increase as compared to first quarter 2015 figures.

And so why the caution?? Having lived through the last peak in real estate as well as the subsequent valley, we know all too well what can happen. As an appraiser, our profession has undergone much scrutiny and overhaul since the Dodd Frank Bill was enacted. I do realize that some of the changes made to the lending process were necessary and appropriate; however, others are tedious and have resulted in many appraisers leaving our industry or worse yet – not getting into it at all!

I would like to think that we have all learned something from our suffering but I am starting to wonder. Acquaintances in the mortgage industry tell me that there are no-money down loans as well as the re-emergence of the no verification products. Homebuyers are anxious to purchase as conventional mortgage rates hover at 3.5%. As there is low inventory in many parts of Rhode Island, some buyers are knowingly willing to pay more than the house is worth just to get into the market. Seller and buyer expectations need to be managed by all of us: appraisers, brokers, sales agents and mortgage originators.

That said, it IS a very good time to buy as well as to sell. On a local level, single units in the city of Warwick realized an approximate 9% increase in median price during the first quarter of 2016 ($185,000) as compared to first quarter 2015 ($169,000). Kent County (comprised of Warwick, West Warwick, Coventry, East Greenwich and West Greenwich) noted an increase of 13% during the same timeframe.

The spring/summer markets are typically the ideal months for buying real estate in Rhode Island. Our seasonal factors cannot be overlooked and most families would rather transition during the summer months than during the school year. Homeowners sitting on the fence should contact their local Realtor NOW as there is a need for well-priced listings in the marketplace. The National Association of Realtors estimates that one job is generated for every two houses sold: now that’s one way to get the Rhode Island economy back on track!

Jamie Moore is the owner of Jamie Moore Appraisal. Moore was assited on this article by Keith White, Jr. SRA, owner of White Appraisal Company, Warwick, R.I.