Great time for homebuyers, but sellers can benefit too

NEW GROUND: R.I. Association of Realtors President Bruce Lane says the naming of a new CEO – Philip Tedesco – has led to a process of “acclimating to new ideas, new leadership [and] distinctive buzz” within the association. / COURTESY RHODE ISLAND  ASSOCIATION OF REALTORS
NEW GROUND: R.I. Association of Realtors President Bruce Lane says the naming of a new CEO – Philip Tedesco – has led to a process of “acclimating to new ideas, new leadership [and] distinctive buzz” within the association. / COURTESY RHODE ISLAND ASSOCIATION OF REALTORS

Bruce Lane has been “playing in the real estate market” since 1985, which has allowed him to put three children through private colleges without taking on debt. The key, he says, is practicing what he preaches.
In October, Lane was elected to a one-year term as president of the 4,000-member Rhode Island Association of Realtors.
Most recently, Lane was a partner at Williams and Stuart Real Estate, but is joining forces with Prudential Gammons Realty as a broker associate beginning this week.

PBN: The job is only a year long. What do you hope to accomplish and realistically how much can you get done?
LANE: It’s not just a one-year position because becoming the president is a grooming that started four years ago. We hold the office as first secretary, treasurer and vice president before we spend one year as president-elect. I happen to be the front guy now, whereas during the last four years I was assisting and we’ve accomplished quite a bit over the last four years.
My situation [as president] is a little different because CEO Susan Arnold retired on Dec. 31 and we had to go on a nationwide search for a new CEO, who is Philip Tedesco from Arizona. There is a transition going on, we’re acclimating to new ideas, new leadership and there is a distinctive buzz within the association.

PBN: What can you say about the current condition of Rhode Island’s housing market?
LANE: If someone knows you’re a Realtor the first thing that they say is, «constant ****SSLq»How is the market, how are things going,’ and I say, «constant ****SSLq»I don’t know, are you a seller or a buyer?’ If you’re a buyer, it’s a great time to be buying a home, whether it is your primary residence or an investment property. Not only has the market stabilized since the bubble, interest rates are so low right now and I don’t know when we’re going to see interest rates this low again. For sellers, we answer the question by saying that in comparison to five years ago, to be selling again is fabulous. As the market has stabilized, somewhat, buyers are a little more comfortable moving forward, and sellers have gotten a little bit more realistic to time the market in a reasonable fashion.
If people have negative equity it would behoove them to sell and write a small check … [they] could recoup that small loss over the savings of the interest rate from one mortgage to the next.

PBN: Do you think the Fed will raise interest rates in June and if they do, what effect will it have on Rhode Island’s market?
LANE: The lower interest rates were designed to help stimulate the housing market and they’ve done that. If you look back five years ago, foreclosed properties and distressed properties were 37 percent of the market. Fast forward to November of last year, it was 15 percent.
The interest rates were brought down extremely low to spark the market. It has worked, but at some point it would probably benefit a more stable market to wean us back to a normal interest rate.
When I bought my house in 1984, I borrowed at 10.5 percent and it was much worse before me. I think that we’d like to see the market back on firm ground and perhaps some small, incremental increases would then say that the Fed is comfortable with us holding that market on our own and until we see that we’re not there.

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PBN: Are there certain parts of Rhode Island doing better than others? LANE: Throughout Rhode Island, as we know, real estate is very local, and all of the areas in Rhode Island have been doing well. Certainly, there are some cities that have been more impacted from the distressed sales, but those numbers are reducing, so there are some municipalities that are behind others, but certainly better than where they were last year.
Properties near the water seem to hold their value, which is good because those are usually second homes and that’s a sign of a bettering economy.

PBN: Looking forward, what needs to happen in order to strengthen the market – who are the key players and what do they need to do?
LANE: As a landlord, I am reluctant to deliver this message, but if you are a renter and you’re paying over a thousand dollars a month for rent you should be strongly considering options … to purchase a property.
There are products out there today that are low, low payments, so if you have a good job and good credit you should be talking to [your] local Realtors. Every time a house is sold, there is a trickle-down effect into the local economy. You are hiring a home inspector, a title attorney, someone to go in and paint the house for you, you’re making a trip to the local hardware store to buy supplies, so the stimulation from that purchase trickles down to so many sectors and that helps and increases the local economy and job market. … The message … I can comfortably deliver wearing three hats, one as president of the Rhode Island Association of Realtors, secondly as a practicing, full-time real estate licensee out in the field, and three as a proud parent of four children [is] … It’s a great time to be a homeowner. What are you waiting for? •

INTERVIEW
Bruce Lane
POSITION: President of Rhode Island Association of Realtors; broker associate with Prudential Gammons Realty
BACKGROUND: Lane has been a licensed real estate agent for about 20 years. He was a partner at Williams & Stuart Real Estate, a former owner of Lane Maintenance and current owner of Lane Senior Real Estate Solutions, a nonprofit created to assist senior homeowners find maintenance contractors for their homes.
EDUCATION: Cranston High School West graduate, 1981; studied real estate law and business management at Providence College from 1981-1986
FIRST JOB: Paperboy for Cranston News and the Providence Evening Bulletin from 1972-79 starting at the age of 8
RESIDENCE: Spring and summers in North Kingstown, winters and fall in Cranston
AGE: 51

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2 COMMENTS

  1. Bruce,
    Rhode Island is a better place due to folks like you who have stayed rather than take the easy path “outa here”
    Nice to see that your passion & drive have paid off well for you & your family.
    It was great working with you while enjoying your enthusiastic approach to life.
    Best to you as you move ever forward in life.
    Bob & Charlene