Did EG's Real Estate Market Just Celebrate Its Best First Quarter Ever?

Confession: We were worried that we were overwhelming you guys with too much data analysis in these posts, so last week when the Rhode Island Association of Realtors (RIAR) released the first-quarter single family home sales statistics (viewed here) we decided we were going to hold off on posting the numbers, well ... my boss did. I pleaded to Big Ron, "Dude, East Greenwich had an 85 percent jump in sales activity? 48 single-family home sales!" He countered, "Well, we knew the numbers were going to be good and that's great, but we've already done a year end comparison chart (here and here). Is this jump relevant beyond this year?"

I was ready for this question and promptly responded, "Yes, We've only cracked 30+ sales once since in the past six years ... and honestly, State-Wide Multiple Listing Service (State-Wide MLS) doesn't post any first-quarter stats before 2007!" SEE! statewidemls.com He didn't have to ask me, I already knew his question, and the next step was finding out the numbers before 2007 so I called the State-Wide MLS and left the world's longest voicemail message asking for links or actual first quarter reports. Less than 30 minutes later, Donna McGinn, the MLS administrator and superwoman for the day, called me back and said, "Hey Matt, I went back all the way to 1995 because that's the furthest the computer system allows, and the next highest East Greenwich single family home sale total was 40 sales back in 2000." The most sales in 18 years? Wow, obviously I wondered if there is a way to get the numbers before 1995 and I did the thing that all of us do when we need more help but realize we're asking a lot … "Donna, I hate to be a pain (but I'm going to be a pain) can we get the stats from before 1995?" She sent me an email back:

"Hi Matt, Sorry, but we only have copies of the year-end comp books going back prior to 1995, so I’m not able to get the first-quarter info for that time period. "  

So, as anxious as I was to make the claim, "We just had the best first quarter EVERRRRR!" I can only definitively say, "We just had the best first quarter since Al Gore invented the Internet and realtors started using it to find houses and research the market!" Which is pretty impressive in itself ... as I mentioned in the previous article, I became a full time realtor in the early 2000s, I would've assumed that was the peak of first-quarter sales activity. Think about it: the market was exploding, anyone who had a pulse and the ability to sign their name on paper was getting approved for a mortgage, surely there were atlas 50 houses sold from January 1 – March 1 from 2000-2005 – NOPE. We only cracked 40 one other time and that was back in 2000. 

Another misperception many of us probably held is the notion that houses don't typically sell in the first quarter of the year in East Greenwich. First, there is the obvious inconvenience of moving while it's cold out, nevermind the blizzard we experienced this year, and the calendar filled with holidays and kids' vacations doesn't seem to help matters. And isn't everyone moving to East Greenwich for the school system? Why would they move in the middle of the school year?! 

The obvious answer is that the market is recovering and buyer's confidence level is higher than it's been in years. Sellers also seem to be more in tune with the market activity and pricing their houses to sell... and/or they started listening to the Realtors advising them. A major motivating factor we've found is that the median price point is more affordable than it was at the peak. Consider that in 2004, the year-end median price in EG was $550,000 – now it is $367,500! Buyers are taking advantage of a lower entry point into EG and the incredibly low interest rates knowing that they won't last forever. We are at a fascinating point in the market where both buyers and sellers are acting incredibly prudent and taking advantage of the opportunities the market has provided – it's not really a buyer's market or seller's market.

View our chart in larger scale here.

Our only concern about all these first-quarter sales? We NEED more inventory!! If you are interested in listing your house, please contact us, we've got someone waiting in the wings for your house! 

The Phipps Realty family has been assisting East Greenwich families since 1976. Joyce Phipps helped start the East Greenwich New Neighbors Association. Ron Phipps, a former Rhode Island REALTOR® of the year, was the 2011 National Association of REALTORS® President. Ron's son, Matt, was recognized as one of the nations Top REALTORS® under 30 in 2008. Please contact them for any of your family's housing needs.

Matt Phipps can be reached at 401-640-0071 or phipps.matthew@gmail.com 

Ron Phipps can be reached at 401-640-7097 or ronphipps@gmail.com