Mott & Chace’s Rutley Not Seeing Real Estate Bubble Emerging - Here’s Why
Tuesday, May 11, 2021
Robert Rutley with Mott & Chace Sotheby’s International Realty says he does not see a real estate bubble on the horizon — and explained why.
"I think one of the biggest concerns is that the lower end price range for the East Side of Providence, when you’ve got so much competition and people are making crazy bids on property, where does that leave the people that are still lingering, that are trying to find an entry-level home?" said Rutley.
"The west side neighborhoods, off of Broadway and off Westminster — where there’s great risk there’s great reward. In the last ten years, maybe even past 12, 13 years we’ve seen such an increase in interest and that goes beyond the little neighborhood around the Armory, into other properties that are beautifully historic," he said.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"So what I think we’re seeing here is that people are making an investment and then that need to live in a neighborhood that has all those great restaurants and all those coffee shops. People are expressing they want to live there are they’re doing that by competing for these single-family homes," said Rutley. "The last time I was [on LIVE], we talked about the millennial input into the market and how they’re really a driving force behind all of the demand and values are going up…and I think that they will continue to go up."
Real Estate Bubble Explained
"Economists are saying this is not a bubble yet but what we have now are the underpinnings of a possible bubble and that only happens if speculators enter the market," said Rutley.
"If there’s a lot of property speculation, you know a bubble really just implies that overvaluation in the market is driven by that speculation, so if speculators go in there and they start saying well you know I think we can sell this house for one million dollars when it’s really a $500,000 neighborhood, and then somebody buys that, I think then people are underwater — that’s the thing that we’re scared of," he said.
"I’m not seeing a bubble happening myself — I think we’re actually going to see the market slow down a little bit," he predicted. "I don’t think values are going to decrease, but what we are going to see is a lot less competition."
Mott & Chace Sotheby's International Realty is a paid content partner of GoLocal and appears weekly on GoLocal LIVE.
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