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| MLS PROVES MARKET IS STILL HEALTHY | | Change in # Homes Sold from '05-'07 | Change in Average Price of Sold Homes '05-'07 | Average List Price Jan-June '07 | Average Sale Price Jan-June '07 | East Greenwich | %54 | 9% | $623,667 | $590,971 | | Exeter | %79 | -6% | $340,508 | $325,456 | | Narragansett | -9% | -25% | $522,994 | $466,530 | | North Kingstown | -13% | -13% | $417,762 | $397,337 | | South Kingstown | 20% | -4% | $434,265 | $411,988 | | West Greenwich | 40% | 19% | $414,433 | $395,857 |
East Greenwich has always seen great growth. This is due to the fact that it is a very stable town with mostly permanent residents. It’s an area that has great culture and history, which is most obvious downtown on Main Street. The entire town is a very prominent place in Southern Rhode Island and its diversity is a huge benefit. It has the shops, restaurants, historic buildings, parks, and waterfront. It’s no wonder that people keep moving to this beautiful area.
The huge increase in number of homes sold in Exeter is very telling of its future. The town, until recently, was very much comprised of land. Today things are beginning to change as people start to build. The great advantage here is that you can get a good size lot of land compared to some more populated areas where only ¼ acre lots are available. The slight decrease in sale price is nothing to worry about. When the market is more stable at the end of the year, and people are more comfortable with real estate, this area will see great growth and development.
Narragansett has seen the biggest troubles since the market began to decline. The biggest factor in this is that Narragansett has so many summer and beach homes. When people began to fear that the real estate market was cooling, potential buyers got worried and decided to hold off on buying that second home or vacation property. It is not as stable as a regular residential town with permanent residents. Also the assessed values for the homes in Narragansett really hurt their market. The homes have a very high average value and the assessments (which are used for tax purposes) were greatly overestimated a couple years ago. When the market was still good people were able to price their homes closer to the assessment and they were still getting offers. Now that things have slowed down the sellers are at a loss because their homes aren't worth what they were assessed at.
North Kingstown’s sale figures leave a little to be desired. This area is suffering from a midlife crisis. When the military base shut down about 30 years ago, the booming town became desolate. Houses were left vacant and many businesses had to shut down because the area’s population was gone. Since then, many of those older buildings have been neglected and are now dilapidated. The town is in the midst of re-planning and many new developments will help to restore the charm of North Kingstown. A new shopping district, much like Main Street in Wickford, is one idea that is being considered. Restoring the businesses and shops in the area will help to attract new residents. So despite the fact that NK’s figures aren’t great at the moment, much is going on to reverse that and in the future this town will see some of the biggest growth and appreciation.
South Kingstown is still seeing steady growth and only a small decrease in sale price. In southern Rhode Island, the villages of South Kingstown are very desirable. The area has tons of history and each village still has that small town feel. The schools are good and the proximity to the beach is a great plus. This area only has a few options for home buyers in lower price ranges and when a more affordable house comes on the market they have been selling within weeks. South Kingstown is definitely a place to be and should continue to see steady growth.
West Greenwich, much like East Greenwich, is showing great growth and even better appreciation in price. This area also has a large amount of permanent residents and has a good school system. It is also very attractive because the homes overall are cheaper than much of southern Rhode Island. It is the perfect place for first time homebuyers to purchase.
Clearly even the towns within South County have very different markets. Each area is unique and has pros and cons. It is very important to understand these differences but also to see the broad picture of real estate. The market isn’t as bad as everyone thinks. This is a great time to buy and a perfect time to invest. Growth and appreciation will be in the rise again very soon.
6/29/07 | |
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