Wednesday, August 23, 2006
The Slowdown is Here- how do you respond?
The New York Times made it official today- federal statistics indicate that all over the countyr, prices are droppping and the number of homes on the market are increasing. Is this good or bad news for you? How should you react aas a buyer or seller.
Sellers first- don't price houses unreasonably. if you look at the real estate transaction in the local paper, you'll see that, despiute the slowdown, houses are seeling- they will continue to do so. However, you won't be able to look at your house as a tool to generate a large capital gain- it's just not gonna happen. If you have been in your home for a number of years, it will have appreciated in value, but not as much as you might have hoped. When the market turns onto a downward trend, houses that went for $350,000 a year ago are lucky to pull $300,000. That's not great new for you as a seller.
However, if you are selling AND buying, you are still in the same position you were in before- the upgarde you hoped to make before the market turned is still possible- remeber that there are other sellers out there having the same experience. There houses will cost less to buy, ffsetting what you perceive as a loss in value of your home. Prices move across the entire market.
Mortgages are a little tougher- you can't get the same interest rates that you found a year ago, so you may end up paying a little more per month. Emphasis is on "a little" though. Remember again, $20,000 extra financed only comes down to less than $200 a month more, and interest rates will come down, making refinancing an attractive option in the near future.
So go ahead- sell the house, or buy the house- you'll be fine. Ultimately we are simply talking about numbers on documents, not hard cash. If you buy right, you can make money in this market. Remember in "It's a Wonderful Life" when Jimmy Stewart told all his Building and Loan customers that Potter wasn't selling- he was buying? When everyone about you is losing their head, look for the best way to get a solid investment. Don't get greedy, but definitely buy.
No one knows where the bottom of the market is, but it is approaching. Buyers and sellers are about $30,000 apart in a lot of cases. That can be made up quickly. Make an informed, thoughtful decision on your proerties and you'll be a happy real estate customer.
Tim Hillman
tim@joedias.com
Sellers first- don't price houses unreasonably. if you look at the real estate transaction in the local paper, you'll see that, despiute the slowdown, houses are seeling- they will continue to do so. However, you won't be able to look at your house as a tool to generate a large capital gain- it's just not gonna happen. If you have been in your home for a number of years, it will have appreciated in value, but not as much as you might have hoped. When the market turns onto a downward trend, houses that went for $350,000 a year ago are lucky to pull $300,000. That's not great new for you as a seller.
However, if you are selling AND buying, you are still in the same position you were in before- the upgarde you hoped to make before the market turned is still possible- remeber that there are other sellers out there having the same experience. There houses will cost less to buy, ffsetting what you perceive as a loss in value of your home. Prices move across the entire market.
Mortgages are a little tougher- you can't get the same interest rates that you found a year ago, so you may end up paying a little more per month. Emphasis is on "a little" though. Remember again, $20,000 extra financed only comes down to less than $200 a month more, and interest rates will come down, making refinancing an attractive option in the near future.
So go ahead- sell the house, or buy the house- you'll be fine. Ultimately we are simply talking about numbers on documents, not hard cash. If you buy right, you can make money in this market. Remember in "It's a Wonderful Life" when Jimmy Stewart told all his Building and Loan customers that Potter wasn't selling- he was buying? When everyone about you is losing their head, look for the best way to get a solid investment. Don't get greedy, but definitely buy.
No one knows where the bottom of the market is, but it is approaching. Buyers and sellers are about $30,000 apart in a lot of cases. That can be made up quickly. Make an informed, thoughtful decision on your proerties and you'll be a happy real estate customer.
Tim Hillman
tim@joedias.com
Wednesday, August 16, 2006
It's Called a Buyer's Market
Right about now, everyone is talking about how bad the market is. All that really menas is that at this point, buying a house is a great proposition. Interest rates are a bit high, but not so high as to dissuade buyers, and homeowners are anxious to get out of situations where their payments have become more than they can handle. For buyers, this is great news. And if there are buyers, then properly priced properties will sell. At The Dias Team, Joe prices properties to sell.
To put it all in perspective, take a look at this chart and see where RI sits in the forclosure market. In case you can't find us, we are #22- square in the middle of the market. Our real estate market is mirroring the rest of the US.
To put it all in perspective, take a look at this chart and see where RI sits in the forclosure market. In case you can't find us, we are #22- square in the middle of the market. Our real estate market is mirroring the rest of the US.
U.S. Foreclosure Market Statistics by State - July 2006
Rate 1 for %Change %Change
Rank State Name every #HH from Jun 2006 from Jul 2005
-- U.S. 1,245 5.27 17.62
39 Alabama 6,396 6.97 -56.52
26 Alaska 2,472 69.39 -47.13
12 Arizona 1,078 -4.74 1.05
17 Arkansas 1,662 -15.45 -70.45
15 California 1,218 -0.06 152.90
1 Colorado 480 3.11 54.75
16 Connecticut 1,335 -2.26 84.37
34 Delaware 4,972 -13.75 115.63
DC 91,615 -72.73 -86.96
6 Florida 679 25.01 -13.74
4 Georgia 658 7.22 14.61
44 Hawaii 8,689 140.91 -93.05
24 Idaho 2,266 60.00 -5.69
10 Illinois 975 -14.66 21.27
8 Indiana 759 11.88 37.06
42 Iowa 7,608 -2.99 -26.03
28 Kansas 2,765 8.22 47.29
29 Kentucky 3,254 50.28 -25.17
40 Louisiana 6,427 115.44 -35.89
49 Maine 81,487 60.00 -65.22
41 Maryland 6,532 -29.61 -35.43
27 Mass. 2,754 -18.91 142.86
7 Michigan 696 25.08 89.21
33 Minnesota 4,843 -21.36 60.53
45 Mississippi 14,584 61.11 -71.66
19 Missouri 1,846 38.95 10.46
38 Montana 6,151 15.52 -23.86
36 Nebraska 5,748 21.36 -47.70
2 Nevada 533 30.71 220.71
48 New Hampshire 34,189 77.78 -33.33
14 New Jersey 1,215 -4.89 36.80
30 New Mexico 3,883 -62.57 -59.23
23 New York 2,204 -10.83 10.01
21 North Carolina 2,078 26.14 16.91
47 North Dakota 26,333 22.22 57.14
9 Ohio 872 -7.67 19.47
13 Oklahoma 1,091 24.55 4.74
25 Oregon 2,414 -56.34 17.32
18 Pennsylvania 1,765 5.91 37.03
22 Rhode Island 2,125 80.00 2857.14
31 South Carolina 3,992 -27.68 -30.87
46 South Dakota 15,391 31.25 40.00
11 Tennessee 1,033 -1.29 -47.04
3 Texas 614 15.39 29.73
5 Utah 660 21.73 21.99
50 Vermont 147,191 -75.00 -66.67
37 Virginia 5,939 111.30 45.51
20 Washington 2,012 -17.43 6.45
43 West Virginia 8,121 36.84 -58.57
32 Wisconsin 4,005 61.97 35.61
35 Wyoming 5,330 -8.70 20.00
Sunday, August 13, 2006
Here's the market glimpse:
Residential building market shifts to multifamily homes
By Justin Sayles, Staff Writer
RISING costs are making it tougher to build single-family houses.
The group last week reported that 414 permits were issued for multifamily homes between January and June, more than double the 194 issued in the first six months of 2005.
Permits for single-family homes, however, dipped. The association reported that 799 permits were issued during the first six months of 2006. That figure represents a 9-percent decrease when compared with the 875 permits issued between January and June 2005.
Roger Warren, executive director of the association, said the strength of multifamily home construction in the face of slumping single-family figures shows that historic rehabilitation and affordable-housing efforts throughout the state are working.
Typically an “erratic” portion of the construction industry, multifamily housing has experienced a resurgence in Rhode Island as demographics shifted and tax credit programs have been created. Efforts to retrofit abandoned mill buildings and other historic structures for housing also have been successful, Warren said.
Conversely, single-family homes have taken a hit in recent years because of the increased cost of land and construction. Warren said that multifamily housing represents a more economically viable solution for developers.
“If you take it as a total, the market in effect may be shifting,” Warren said.
The multifamily market could also experience another boom in coming months with voters being asked to decide the fate of a statewide housing bond. The $50 million referendum would go toward affordable-housing projects. Warren said that if it is approved, the association expects much of the money will go toward higher density housing projects. It would also represent an “economic shot in the arm,” he said.
The quarter also presented another anomaly. The number of single-family home permits issued from April through June marked a decrease from the first quarter of 2006.
Historically, Warren said that the second quarter has been more active than the first quarter in terms of construction. But the drop-off in permits issued – from 415 in the first quarter to 384 in the second – could be attributed to several factors, he said.
Rhode Island experienced a generally mild winter this year, Warren said. The warmer weather allowed more work to begin on homes between January and March.
Additionally, the overall market is slowing down, Warren said. The selling market has cooled, as evidenced by figures released by the R.I. Association of Realtors this month.
Those figures show sales of single-family homes dropped 9.86 percent this past quarter from the same period in 2005. Homes are staying on the market an average of 11 days longer than they had last year, while the median price – at $285,000 – remains unchanged from where it was a year ago.
Colin P. Kane, principal of Peregrine Group LLC, said that the overall industry is still in good shape despite the signs of slowing. Construction companies are still witnessing job growth and interest rates remain relatively low, he said.
Peregrine, which develops multifamily projects, had only one unit in inventory as of last week, Kane said.
The slowdown in single-family permits is likely a sign that a previously booming market is balancing itself, he said.
“The market was so hot,” Kane said. “I don’t think that the market has stopped. I think the market has just gone to more of a traditional residential market.”
Despite reports that residential home construction and sales are lagging nationwide, Warren said Rhode Island maintains a relatively high demand and doesn’t have “a really highly inflated market.”
“I don’t think that you’re going to be seeing the decline that you are going to in other parts of the country,” Warren said. “And when people see that, I think they will be coming back to the market here in Rhode Island.”
The drop in single-family home permits cut across the state, with 25 of Rhode Island’s cities and towns reporting drops during the second of 2006. But several communities – including Barrington, New Shoreham and Providence – saw increases during the quarter.
What's happening with the market?
It's time to buy-
You might think the market is slumping- that only means that you've got greater choice when it comes to buying! Now's the time
You might think the market is slumping- that only means that you've got greater choice when it comes to buying! Now's the time
Saturday, August 12, 2006
The Estate Tax (from the ProJo
Thursday, August 10, 2006
What Makes Rhode Island Great?
Here's a story from Richard Griffin- a Massachusetts columnist who has some great things to say about our little state. Too often we see Rhode Island through our eyes, not those who visit. Makes you feel good about being from Rhody!
Griffin: 'Little Rhody' is small in size, big on pleasant experiences
By Richard Griffin
Thursday, August 10, 2006
"Poor Little Rhode Island," is a jaunty ditty that was featured in the Hollywood film "Carolina Blues" in 1944. For some reason, both its first line and its tune have remained lodged in my memory ever since.
Were I to quote its other lines, you would appreciate the song's overall fatuousness. For example, in stanza two, the state is addressed (without a noun) as "You're such a teentsy weentsy." Affectionate, possibly, but definitely smarmy.
A two-week vacation in Rhode Island this summer prompts my reference to this absurd relic of the World War II era. Any time spent there serves to belie the condescending attitude of the song's creators.
This season's experience, like that of a sojourn in Matunuck, R.I., two summers ago, makes me wonder why so few greater Boston residents appreciate the virtues of that state as a vacation site. I'm no real estate flack, but I value stylish houses and graceful shore lines when I see them.
Rhode Island's beaches rival those of Massachusetts for beauty and grandeur. Where it has the advantage is the accessibility of these sites, at least by comparison with the notoriously jammed approaches to Cape Cod. Traffic sometimes causes delays on I-95, the main drag through Providence heading south, but these tie-ups seem to be the exception rather than the rule.
One of our motives for visiting Rhode Island was the opportunity to be near a favorite cousin who lives in the town of Wakefield. Spending time with her always brings pleasure to us and other family members.
Our vacation this year meant house-sitting in our cousin's neighborhood for people not previously known to us. Part of the experience involved getting to know the workings of a home quite different from our own. The challenge of finding this structure's virtues and coping with some of its surprises proved a continual source of fascination.
The presence of the family's cat, Java, offered a special challenge. He, it turns out, is remarkably vocal and insistent on his own ways. My general approach was to give him as much time outside the house as possible. But my wife, who served as interpreter between us, was charmed by his affectionate temperament and exotic good looks.
Some readers will remember that we had 13 years of previous experience at home with an ornery cat, Phileas J. Fogg, by name. Phil was never cuddly and would often pose nonnegotiable demands. We missed him when he was gone, though, and our recent experience reminded us of the joys and frustrations of having a pet.
Wakefield is a charming place, by and large. The neighborhood where we stayed features houses with large porches that often curl around the whole front of the structure. Part of the daily pleasure of being there turned out to be the breezes that, almost invariably, cooled the porch. It proved to be the best site for reading and conversation.
Early mornings, I would stroll down to the local old-fashioned shopping center where I bought newspapers at Healy's store. The proprietor, with whom I share a first name, proved a genial fellow with whom I immediately found common ground. A procession of customers, most of them male, would also come in to get their newspaper. Sales of the Providence Journal boosted my morale: newspapers continue to be a vital, if ancient, technology.
Papers in hand, I would often proceed to "Appetites," a local coffee shop, for morning tea and muffin. There, more of the town's old boys would sit and exchange local gossip.
One of them, Tom, announced one morning that he was not at the top of his game. He was definitely not feeling his best.
"What's wrong?" I asked with the innocence of a visitor. "My dog died," Tom replied. Summoning up such sympathy as this canophobe could muster, I expressed condolences to the man.
Soon after, he informed me that he was "just kidding."
With a next-door neighbor I fared much better. Born in 1924, this tall, slim man immediately seemed to me remarkable for his physical abilities. Conversation revealed that he left college in his freshman year to enter the Army Air Corps. After training, he piloted a B-17 over Italy, bombing German positions in the north.
It fascinated me that he could take on such responsibility at age 19, commanding an 11-man crew and managing such a large plane. With modesty typical of the man, he dismisses these feats, quoting one of his flying instructors who told his pilots-in-training: "It's just like driving a car."
This veteran also dismisses talk of "the greatest generation." Instead, he feels that the war gave to his age peers a definite structure for their young lives. It was easier, he thinks, for them to find themselves in the world than it has proven for many young people these days.
Who knows? This Rhode Island sojourn may at last root out of my head both music and lyrics of that silly old song.
Griffin: 'Little Rhody' is small in size, big on pleasant experiences
By Richard Griffin
Thursday, August 10, 2006
"Poor Little Rhode Island," is a jaunty ditty that was featured in the Hollywood film "Carolina Blues" in 1944. For some reason, both its first line and its tune have remained lodged in my memory ever since.
Wednesday, August 09, 2006
Welcome to The Dias Team Blog
We're here to keep you up to date every week on news pertaining to Real Estate, the Rhode Island real estate market, and what's happening at The Dias Team in Cranston, RI.
We look forward to being of service to you!
We look forward to being of service to you!
