Brenda L. Marchwicki is the president of the Rhode Island Association of Realtors, and the broker-owner of BisMarc Properties LLC in Providence. Licensed in both Massachusetts and Rhode Island, she began her career in real estate in 1997 as an appraiser. She spoke recently with the Providence Business News about why home listings in Rhode Island have fallen below last year.
PBN: Is the lack of inventory of homes available for sale depressing the market?
MARCHWICKI: The lack of inventory is a primary factor in the restriction of sales in progress throughout the state. It’s kind of what happened when we started out in 2016. January and February were very strong months. We were a little bit slow in March and April, then we picked up momentum. I am anticipating the spring market will pick up momentum.
PBN: Why is the inventory so low now?
MARCHWICKI: In my industry, I ask around. As state president, I want to talk to my colleagues, what are they hearing from their clients. And then, what am I hearing from my clients. I have a client right now who is putting their raised ranch on the market, and they say, “Brenda, where are we going to go?” They’re in that situation. They’re looking at a property priced a little bit above the median price. There is not a lot for them to choose from. Some people have indicated they’ve regained their equity, they have refinanced to a favorable term and condition for them to stay where they are. That’s one segment.
PBN: You are saying the market will follow a natural course and correct soon. How does that happen?
MARCHWICKI: What actually starts the supply is two-part. You get people who are in a better financial position who are looking at what the market might offer them. They’re looking at their starter home, if you will, and it’s a perfect opportunity for them to move up. What we’re seeing right now is really mirroring last year’s momentum. You have the baby boomers out there, and if they have a place to go … maybe a second home, they’re moving on because they have a property. They’re introducing product to the market.
PBN: What portions of the market are doing well?
MARCHWICKI: Condos are doing really well right now and so are multifamilies. Buyers are very resilient. They’re looking at what’s available. It’s a perfect time to get involved in that kind of an investment, multifamilies, right now. Our rents are very high and it will build an individual’s equity position.
PBN: Do Realtors advise buyers to start looking at multifamily residences if they’re getting shut out of the single-family-home market?
MARCHWICKI: Yes. A professional will give them all the options.
Mary MacDonald is a PBN staff writer.
