Second Homes on the Rise in Rhode Island
Wednesday, February 05, 2014
Rhode Island is, and has been for a very long time, a relative bargain for vacation homes. This becomes very evident simply by driving an hour South into coastal Connecticut or North and East out on to the Cape. Pricing in these areas is dramatically higher. A little further out to the Hamptons or Nantucket and vacation homes become attainable only for the super wealthy.
Sale of luxury homes increased
The National Association of Realtors has stated that Nationwide the sale of luxury homes costing more than $1 million increased almost 47 percent from July 2012 to July 2013 and locally we have seen inventory scarce in our most popular second home and vacation areas. Fortunately, we have loads of options in Rhode Island at far lower prices. Even waterfront properties can be purchased in desirable areas for as little as $250,000 dollars.
According to the National Association of Realtors, Nationwide the typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles
Rhode Islanders have famously purchased vacation homes just a few short miles from their primary residences, due in short, to over 380 miles of beautiful coastline. Whole communities moved south in June from Cranston, Johnston, and other Northern Rhode Island communities to Bonnet Shores, Charlestown, Green Hill and other south shore meccas. Now driving thru these areas you will see more cars in the driveways with plates from New York, Connecticut, and Massachusetts than Rhode Island plates. Rhode Island is being discovered again.
There have been many notable high-end sales in our State in recent months. Not the least of these was the purchase in Watch Hill by pop star Taylor Swift. Newport is a contractors dreamland as the uber affluent snap up bargains on mansions and vacation homes while investing millions into renovations and improvements. The handwriting is on the wall... and the bargains are drying up.
Still, there are opportunities all over the Ocean State for everyone. Interest rates have been at historic lows and many Rhode Islanders have taken the opportunity to invest in vacation and second homes. Narragansett and South Kingstown offer investment opportunities in moderate price ranges that have the added benefit of winter rental income from URI students. Affordability here is the key to the brisk sales.
NAR Chief Economist Lawrence Yun said favorable conditions are driving second-home sales.
“We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes. Attractively priced recreational property is also a big draw,” Yun said in a news release.
Rhode Island offers the one of the best vacation home markets anywhere. Steadfast values and a broad range of options and pricing in the marketplace will continue to draw new buyers. If you're on the hedge trying to determine if now is the right time. Well, I'm writing to tell you... Pull the trigger.
This column is part of an ongoing sponsored content series with Prudential Gammons Realty.
Related Slideshow: Affordable Homes on the Market
40 West St.
4 beds, 2 baths
This adorable abode boasts a new granite kitchen, formal dining room, central air, gas heat, vinyl siding, finished lower level with family room, and a bedroom bath/jacuzzi. The house is generator-ready, and also offers an invisible fence and above-ground pool.
1615 East Main Rd.
2 beds, 1 bath
This Portsmouth bungalow comes with many new updates, including a new roof, 3-bedroom septic, and renovated bath with jacuzzi tub. The upstairs and basement is finished, with the possibility of a third bedroom. Last but not least, the house's large lot offers water views.
435 Farnum Pike
3 beds, 2 baths
Make your home in Farnum Pike with this cozy Cape featuring hardwoods, an open living room, and partially finished basement with a walk-out yard. This is a great little home with a newer kitchen, a large master bedroom, and a peaceful yard.
7 Simon Templar Dr.
3 beds, 1 bath
If contemporary beauties are for you, check out this home. With a maple and granite kitchen, wood floors, wood shed, and passive solar, this house is great for the eco-friendly! Bonus: the home is on a cul-de-sac with over 2 acres of privacy.
25 Carter St.
4 beds, 2 baths
This spacious Colonial has a classic mansard roof, front porch, side deck, off-street parking, high ceilings, hardwood flooring, fireplace, vinyl siding, new windows, updated plumbing and electric, and whirlpool tub in the upstairs bath.
741 Mount Pleasant Ave.
3 beds, 2 baths
This ranch house offers hardwood floors, new windows, a great deck over a landscaped yard, central air, finished lower floor with a walkout, and a possible in-law...all on the North Providence line!
138 Chambly Ave
3 beds, 1 bath
Everything is brand new in this fabulous updated Cape. You'll find hardwoods throughout, granite countertops, stainless steel appliances, a new heating system, and ceiling fans in this home, as well as a fenced in backyard and partially finished basement with walkout.
21 Brookside Ave.
3 beds, 1 bath
This home was completely renovated in 2004 with a new roof, side, windows, pumbling, electric, boiler, and much more. The house is extremely well kept both inside and out, and is also fully applianced.
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