Would you say the Newport market is a buyer's market at the moment, or is it bouncing back a bit?

Asked by Kate, Jamaica Plain, MA Wed Oct 7, 2009

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27
Amy Hoag, GRI…, Agent, Newport, RI
Wed May 16, 2012
Hi Kate, The Newport market does seem to be showing signs of shifting away from a strong buyer's market. Sellers are in a better position than they have been in the past few years and homes priced to sell are seeing multiple offers and selling in less than a week. I hope this answers your question, Amy
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Chad Kritzas, Agent, Middletown, RI
Tue Apr 24, 2012
Hi Kate, Newport is a buyers market but all signs are quickly pointing towards a shift. We are seeing a recent decrease in days on market and an increase in multiple offer situations.
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Raymond Card…, , Middletown, RI
Fri Mar 18, 2011
Tom,

Homes are worth whatever the Buyers are willing to pay. It is true that some homes are still overpriced. But the homes that are priced for TODAY'S MARKET are moving quickly. To sell a home it take the right agent with the right marketing and pricing strategy.

I recommend that ll buyer work with a diligent Buyer's Agent that will help them find a home that fits their needs for the right price. You don't want an agent that is just pushing properties on you.
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Tom, Home Owner, Newport County, RI
Fri Mar 18, 2011
Anyone claiming that this is a buyers' market is completely ignoring the imminent price declines. Interest rates are low, yes, but properties are overvalued, perhaps by as much as twenty percent.
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Amy Hoag, GRI…, Agent, Newport, RI
Fri May 14, 2010
Hi Kate,
In my opinion, Newport is a buyers market especially for properties that have been on the market a long time. On average, properties are selling for about 8-12% of their original asking price.
However, when new properties come on the market, if they are in excellent condition, and are priced exactly where they should be, we are seeing sellers receive multiple offers.
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Genny Croll, Agent, NEWPORT, RI
Fri Mar 12, 2010
Newport is still a buyers market, but thank goodness there are now more buyers. So we are coming alive. Also there are some nice properties coming on the market. Some sellers need to ajust prices down more, but the buyers will let them know that. So i think we are boucing back a little. We will see what happens when the interest rates go up. Buyers better act now! Genny
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Kate, , Jamaica Plain, MA
Thu Feb 18, 2010
Hi--thanks for the updates on market situation.
The thing holding me back is there is not much hope I
would find a job within 1/2 hr. of Newport (is there)?
Hard to give up my part-time gig in Boston area,
replete with health insurance for entire family among
other bennies. I know the naval base/college may expand but
understand most of those jobs will still be very hard to
get. Other than that....????
Thanks again,
Kate
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Donna Leathem, Agent, Milddletown, RI
Wed Feb 17, 2010
Hi Kate,
I would surely suggest to you that this is a buyers market and that is why our inventory is at a six month supply or less. If you are seriously looking to buy in Newport area then now would be a great time. I had a buyer that was searching for a great deal since July of last year and what he found was that all the properties that were priced below market had so much work to them that he started to look elsewhere.He ended up buying a property in Newport , he is very happy with his purchase because he thought he could never afford a property in Newport a year ago. Agents are pricing properties in today's value and they are going under contract much faster. this is being done because agents are educating their sellers about the current market value.
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Waitin2buy, Home Buyer, Newport County, RI
Tue Dec 29, 2009
As someone who's short sale just came thru and closed 2 weeks ago i now find that people are sensing that the bottom in this market is almost there. I had 5 "backup" properties that i had looked at and liked if the short sale fell thru (7months btw). these props are all gone at this point as well as agreements on other shorts i had seen out there. There are even a couple of ' really crappy houses that just went under agreement in the last couple of weeks that i thought would rot for long time. I think that surely more will come on line but by time you go thru the pony show the interest rates might climb. I just saw a few on Kritz'es site that were overpriced and finally someone had the sense to drop the price to where i really think they'll get snapped up.. I would say it would be in your best interest to get off your ass and buy now in NPT while the money is cheap to borrow. I think in early spring you'll be fighting off the couch sitters who finally realized it was time to get up... good luck!
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Wri001t, , Warwick, RI
Tue Dec 29, 2009
Rhode Island real estate sales by zip 12/25/09
December 26, 2009

02840 Newport $70,360,500
02816 Coventry $57,327,628
02906 Providence $56,427,896
02891 Westerly $56,086,509
02886 Warwick $51,526,182
02818 East Greenwich $48,535,252
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Jorge Murall…, , Newport County, RI
Sat Nov 28, 2009
Hi Kate, I hope that you are well, my name is Jorge Muralles and I am a real estate consultant here in Newport RI.

The real estate market stayed very stable in the middle of the hosing problem, but eventually, the wholly situation caught up with our area. We have seen an increase on foreclosures and short sales offerings. Email me or call me if you have any questions about this.

The real estate market is always a buyer’s market as long as you are always looking to buy.

We work with several investors and have acquired and resold property in all markets, low, high, buyer’s seller’s; there are always investment opportunities.

Take a look at the link below, there are some very interesting REO properties in RI right now.
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Kate, , Jamaica Plain, MA
Fri Nov 13, 2009
I appreciate everyone's perspectives and feedback. Keep it coming!
Many thanks,
Kate
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Craig, , Western Ma.
Thu Nov 12, 2009
I had the opportunity to speak with some folks (not Realtors) who could tell me the unbiased and unvarnished truth. Here it is.

Properties are selling. BUT, the few which are selling are often properties that were listed for very high prices previously, and now dropped WAY down. An example would be 750K properties selling for 550K.

Although it's not perfect data, the layman can go to a local web site:
http://www.newport-now.com/category/realestate/transactions/

and use google maps to find the properties. You will often be able to find the original price - or at least the last price that the property was listed at. From a quick study, it appears somewhat correct what I was told - low priced properties are selling - as are 700-800K properties that have been reduced to 450-550K.

That is good news for any potential buyer! I would definitely buy a property at the right price if I didn't already do so. In fact, the prices (not the listing prices, the sale prices!) are getting down to the point where it is almost tempting for investors...but not yet!

Due to the limited amount of decent properties, I really doubt we will see another Florida or Hilton Head situation here. No one can guess the bottom, but I think we are there or within 10% of being there.
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Dan Chase, Home Buyer, Texas City, TX
Wed Nov 11, 2009
Remember one thing. It can not be denied.

Over the past few months the $8k buyers bribe made people feel they had to buy in a hurry. That buying frenzy drove prices up. The credit was the reason for the buying. It has been extended yes, but when it expires the buying season will not have started. If it is extended again the buyers will not be in a hurry to buy. After all, they will keep extending it forever right?

Statistics may show that prices went up. But add in the buyers bribe, that interest rates will rise, and that the federal reserve is going to stop buying mortgage backed paper before the new buyers bribe ends and you have reasons to see that not all is at it might seem.

Since we ahve millions of houses in foreclosure now and more to come over the next few year (around 7 million) there is no real reason to expect out of historic norm pricing to get pricier. There is reason to expect prices to drop.
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Waitin2buy, Home Buyer, Newport County, RI
Wed Nov 11, 2009
I want to add this... I do think this winter will be the time to buy down here in Newport. Those interest rates can not be denied... 15 yr at 3.75 at 2 pts. lord oh lord.. nptfed.. you can't get lower. 30's under 5 and cheap equity with a glacially moving prime rate. Really is something if one can take advantage. I honestly thought i'd never be able to live down here after looking at places 4 years ago. My do things change.
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Waitin2buy, Home Buyer, Newport County, RI
Wed Nov 11, 2009
As a buyer circling over the Newport/Middletown market I find alot of the houses are sitting for long periods of time and are basically overpriced for the work that needs to be done on them. Sure, there a multiple offers around on some properties but how many of those pan out trying to get the money? Plenty of "back on the market" too.68 percent sounds good but really how many units were sold? If it wasn't for a decent 1 month frenzy late June and July with people thinking the bottom hit it would be total gloom down here. Property values alone have been whacked hard. I still think there is some more bottoming to go until end of March.
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Michelle Drum, Agent, Newport, RI
Fri Oct 30, 2009
P.S. I am proud to say that I am realtor in Newport County. Through our education requirements etc. we have a fabulous group of agents and I am sure that any agent in Newport would serve any buyer or seller well.
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Michelle Drum, Agent, Newport, RI
Fri Oct 30, 2009
There will always be buyers and sellers in any market. First of all, to maximize your sales price condition and presentation are essential. Buyers are today are busy and are used to viewing property on HGTV and have certain expectations. Secondly, if a seller loses money, if they are buying a new house they will make a good investment on the buying end. It all balances out.

I have also noticed that a lot of the lower priced properties in Newport are not being bought by first time home buyers but by investors as rental property.
Web Reference:  http://michelledrum.net
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Raymond Card…, , Middletown, RI
Wed Oct 14, 2009
Hi Craig,

Just stating things as how I see them right now. ANYTHING can happen to change the situation in a minute! I DON NOT believe in always giving optimistic opinions. I believe in FACTS. it is unprofessional to make statements that aren't based on facts and does no one any good.
The only way I would refuse a listing is if it didn't make good business sense, ie ridiculous asking price, seller who refuses to market properly ( that does happen).
As for Buying property... You should always use a professional Buyer's Agent. We can help you find properties that meet your criteria, establish a quality offer and handle negotiations in your best interest. All while the Seller pays.

It sounds like you have been wronged in the past by someone in our profession. For this I am sorry. Hopefully your future experiences will be better.
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Craig, , Western Ma.
Wed Oct 14, 2009
Everyone is entitled to their opinion - but it can ruin the entire concept when the typical "yes, the market is great" answers are given.

The truth is in statistics. I'm certain our Realtor friends could, for instance, tell us how many properties sold in calendar year 2006 and 2007......as a baseline. Then they could tell us 2009 sales to date, both as a percentage of asking price and in terms of the numbers of closings.

I am not a pro - but I have bought and sold properties for 30+ years and one thing that has remained consistent is that many Realtors ALWAYS tell me things are amazing....well, truth be told, they sometimes tell me they won't even accept a listing because nothing is selling. In those cases, I have often sell the property myself and proven them wrong.

So the real truth lies somewhere in between. There is, due to geography, only "X" amount of decent properties in Newport County. That means many potential buyers don't have vast choices in any price or location range. As a result, a good property at a good price can be sold.

However, a turnaround or complete transition will only be evident after the fact...after properties settle and are counted, and IMHO it has not happened yet.......

Personally, if I was a Realtor, I would refrain from using blanket statements like "All these items definitely LEAD to a stronger Seller's Market". Interest rates may be headed up. Th $8K thing is expiring.

On the other hand, the stock market is improving AND time is passing. That means many sellers have to sell and SOME buyers want to buy. I'll go this far.......if you want to buy Real Estate in the Newport area, now is probably as good a time as any to look and make offers. But do so with discretion. Look at the recent sales - google the properties and check them out. Find a buyer who really needs to sell...make an offer, etc.
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Raymond Card…, , Middletown, RI
Wed Oct 14, 2009
I agree with Mr. Chapman. The statistics back that point of view. our office has had more pending sales in the last month than anytime in our history. Homes that are PROPERLY PRICED are drawing multiple offers regardless of the range. These facts along with those stated below show that Newport currently has a stronger market than other areas of the state and country.
There are several programs out there on the state and federal level that help home-buyers to afford housing in their communities. They help Home Sellers as well as buyers. The greatest one being the soon to expire, First Time Home-buyer's $8,000 Tax Credit. These programs have made it possible for many homes ti be sold and/or for some homes to never see the market due to loan restructuring.

All these items definitely LEAD to a stronger Seller's Market. Right now we appear to be in the Transition Phase.
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The Bellevue…, Agent, Newport, RI
Wed Oct 14, 2009
I completely disagree with a lot of the comments. 68% of sales in Newport County have been under $400,000 in the past 12 months. There is currently less than a 6 month supply in Newport. This would indicate prices RISING in the next 6 to 12 months. In addition, there is significant job creation in the area. So the buyers market could quickly turn to a sellers market in certain price ranges.

There are some foreclosures and short sales, but this represents less than 2% of the local market.

Like politics, all real estate is local.
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Susan Costa, , Westport, MA
Thu Oct 8, 2009
Absolutely -- buyer's market.

RI Programs out there help home buyers.

Let's talk .
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Cathy Wicks, Agent, Newport, RI
Wed Oct 7, 2009
Kate,
In my opinion, Newport, as well as other locations may be a buyers market for properties that have been on the market a long time and/or are over priced.
However, at this time, when new properties come on the market, if they are in great showing condition, and are priced exactly where they should be ( using the comparables of the previously sold properties as a guide) multiple offers are happening again.
Sellers can get a good price for their home in a short amount of time if they are serious about these two things.
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Craig, , Western Ma.
Wed Oct 7, 2009
100% buyers market!
Most sales have been at the top end (very few) and at the very low end.
Realtors will tell you things are good most of the time - they are eternal optimists (for various reasons, of course!).

Truth is that many properties have went down and continue to fall in price with the actual value not even known since no one is buying even at the discounted price.

If you want to buy - and are not attached to any particular property - you are most definitely in control.
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Raymond Card…, , Middletown, RI
Wed Oct 7, 2009
Hi Kate,

Newport is definitely bouncing back. Our office has more Pending Sales this month than any time in our history. That is an amazing Stat. If you have a property to sell, there are Buyers out there right NOW!!! If you are looking to purchase, what great timing. While properties seem to be moving a little faster lately, the prices are still more affordable than they have been in years.

Ray Cardoza
Keller Williams Realty of Newport
401 608 3914
RCardoza@KW.com
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The Bellevue…, Agent, Newport, RI
Wed Oct 7, 2009
The short answer is that it is bouncing back. But it depends on your price range. Currently there is less than a 5 month supply of properties under $300,000 which would indicate prices rising in the next 6 months. Also, there is significant job creation in the area which should increase demand and further reduce supply.

Also, 68% of sales in the past 12 months have been under $400,000!

Each situation is unique which requires professional advice.

Please let me know if I may be of any assistance.

Thank you.
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