Five Questions With: Sally Lapides

SALLY LAPIDES is president and CEO of Residential Properties Ltd. / COURTESY RESIDENTIAL PROPERTIES LTD.
SALLY LAPIDES is president and CEO of Residential Properties Ltd. / COURTESY RESIDENTIAL PROPERTIES LTD.

Sally Lapides is president and CEO of Residential Properties Ltd., of Providence, one of the state’s largest residential real estate agencies, with 1,572 sales in 2014, according to the 2016 Providence Business News Book of Lists. Lapides spoke recently with the PBN about why 2016 is on track to break an 11-year-old record for single-family home sales in Rhode Island. The all-time high was 9,794 single-family sales in 2005. Through October, the Ocean State had seen 9,185 closings, according to Residential Properties.

PBN: What are the indicators that this is going to be a record year for sales?

LAPIDES: We’re looking at year-to-date sales, and compare them to last year’s year-to-date sales. We’re looking at the pipeline, so those are the pending sales. And we’re looking at overall activity that the agents are reporting, in terms of potential listings, buyers interested in buying, just how busy they are. The market is not as “typical” as we always thought it was. If interest rates are low and inventory is low, and buyers are high, then we could have a really busy January, if we don’t have huge snow storms or weather-related things.

PBN: Interest rates have started to rise recently. Is that a concern? Do you think it will have a chilling effect on the market?

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LAPIDES: I think interest rates are so low right now that a moderate bump up will not affect the market. If the interest rates go up more than 1 or 2 percent, then I think you notice more people assessing whether this is the right time for them to be in the market. I think interest rates have to be over 5.5 for that to happen.

PBN: You mentioned that inventory is low and buyers are interested. Why do we suddenly have buyers back into the market? Is it just pent-up demand?

LAPIDES: I think there is more job security. With job security, comes the American dream of achieving home ownership. I think our elected officials are overall highly regarded and people feel security in decisions made within the state. And I think those people who were under water between 2008 and 2013, are now at least breaking even if not seeing some equity. They’re not as imprisoned by their house. They can make some decisions.

PBN: The inventory being low. Is that still affected by people buying at the peak and not having enough equity to sell?

LAPIDES: I think somewhat. I do think potential sellers are worried they’re not going to find a house that they want to move to. It’s not common that a seller buys before they sell. That’s an unusually secure buyer. There is actually some decent inventory at the higher levels. Fewer people qualify for homes over $500,000 or $750,000. In the higher end, if they’re looking to downsize and they want stunning new construction, it’s limited. So they’re afraid to put their house on the market until the new construction gets built. Whether it’s on the I-195 land or in some of the huge estates that have been broken up. Let’s say someone with a three-floor house wants to buy a ranch. It takes a long time for a ranch to come on the market, so they’re waiting to put theirs on the market until they can find something to move to. That’s where it stops.

PBN: Where are some of the locations that you’re seeing the most buyer interest?

LAPIDES: We’re seeing the most buyer interest in the East Side of Providence, in the public school system areas that are highly regarded, like Barrington, East Greenwich, Cumberland, Lincoln, South Kingstown. Places that have highly regarded school systems are often the driver, particularly for out-of-town buyers who are searching not just lifestyle but quality education. People will make a compromise on the perfect house, if they’re buying in a town that has the number one school system.

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