Arthur Yatsko is the owner of the Salisbury Agency and president of the Rhode Island Association of Realtors. He has been an active member of the Realtor community for 39 years.
PBN: Home sales in the Providence-Warwick metropolitan area climbed 24 percent year over year in February. Do you see this upward trend continuing through the spring as more people look to buy?
Yatsko: The number of multifamily properties also rose 31 percent and condo sales rose 57 percent. That’s pretty significant growth. MLS also tracks pending sales. Those are sales under contract but not yet sold and they’re considered to be the best indication of the market trends to come in the next few months. Pending sales of single-family homes were up year over year by almost 19 percent and by nearly 10 percent in the condo market. Those numbers are telling us that the upward trend will continue.
PBN: Are there any parts of the market that are particularly strong right now? What is fueling the demand?
Yatsko: As I mentioned, the condo market soared in February with 57 percent more sales this year than last. Condo financing had been really difficult and that was stalling sales prior to this year. Fortunately, legislation was recently passed that eliminated some of the onerous lending requirements. Now that many of the overly restrictive impediments to financing have been eliminated, sales are taking off.
PBN: Is there a threat of another real estate bubble occurring in Rhode Island?
Yatsko: The speculative market we saw several years ago was fueled by the promise of easy money. Lending requirements are much stricter today than they were then. Today’s buyers are better qualified and many of them are paying cash so I don’t see Rhode Island heading into another bubble. Lending is easing up a bit – some people can actually get loans at low interest rates with zero percent down – but not without proving their credit-worthiness.
PBN: Real estate sales usually begin to pick up in the spring – what are conditions like right now for sellers?
Yatsko: We’re actually experiencing a market that slightly favors sellers in most areas of the state right now. Our supply of homes for sale is diminishing so if people are thinking about selling, now is a great time. They will have less competition and pent-up demand, and continued low interest rates are causing buyers to flood the market.
PBN: What advice would you offer to first-time homebuyers?
Yatsko: Get pre-qualified and hire a Realtor. Buying a home is a big step. You should understand from the outset exactly what you can afford. And, having an expert looking out for your interests can save you from costly mistakes.
Also, be aware of what constitutes a “first-time” buyer. Technically, if you haven’t owned a home in three years, you could probably qualify for some great low-interest, low-down-payment, first-time buyer programs. Even people who lost their homes during the recession due to a job loss or other extenuating circumstance can take advantage of these programs as long as they can show that they are currently credit-worthy. Plus, there are some great programs and grants out there for recent graduates or people who are willing to purchase previously foreclosed homes. The bottom line is that you shouldn’t enter the market blind. A Realtor can help you find the right home for you and guide you toward financing options that you may have otherwise not known about.
