Lori Joyal is the managing broker for the Watch Hill offices of Lila Delman Real Estate International in Westerly. A real estate agent for 11 years, she is consistently ranked among the state’s top agents. In recent weeks, she has served as listing agent for six significant sales along the coast, including a $1.85 million sale in Matunuck and a $2 million oceanfront cottage in Quonochontaug.
PBN: Are sellers moving ahead this spring robustly on seaside purchases, or has there been an uptick in listings?
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JOYAL: The inventory in South County has significantly changed in that the decline [in listings] has spurred a seller’s market. South County has an exceedingly low inventory. The extraordinary desire for our beautiful Rhode Island coastal properties continues to rise, as evidenced by the overwhelming demand. It is relevant to note that in South County the majority of our real estate market is discretionary spending in that it is a haven for second-home buyers, However, although the demand is there, the prices are holding steady and have not risen dramatically. The buyers are plentiful, albeit they are looking for a value. I believe that the spur in the economy has given rise to buyers looking to place their money in real estate where they can enjoy their asset and anticipate growth going forward. I find even high-end buyers taking mortgages because to liquidate their assets that are doing so well doesn’t make sense when borrowing rates are desirable.
PBN: These communities are classic New England seaside villages, but didn’t have the national presence of Newport or Block Island. Has that changed?
JOYAL: Yes, it has changed somewhat, keeping in mind the allure of Newport and Block Island and Watch Hill will always remain attractive, as they are coastal destinations with profound name recognition. The shift to areas such as Quonochontaug, Weekapaug, Shady Harbor and … Shelter Harbor are moving at an exceedingly steady pace because they are also defined by a sense of community.
PBN: Why are buyers seeking out neighborhoods such as these?
JOYAL: The preponderance of sales in these areas are to secondary homebuyers. These seaside enclaves are in demand because they are small, family-oriented communities where you will know your neighbors and they have association or community events that bring everlasting memories to moms and dads, children and grandparents. As an example, in Quonochontaug, you will find picnics on the beach, Fourth of July parades, etc. My daughter has her summer friends and these friendships remain forever. The same is true in all these areas. Buyers are actively seeking a place where friendships and relationships make everlasting memories.
PBN: What does this portend for the spring and summer sales season?
JOYAL: The first quarter was robust. More often we are finding that buyers are looking in the fall and winter in an effort to be in their home for the summer. Lila Delman Real Estate International’s sales were very strong in the first quarter and our second quarter is exceptionally vibrant. [Our] growth this year exceeds our remarkable 2016. The summer months remain very busy as more tourists come to our beautiful state and enjoy our fabulous coastline. Vacationers flocking to our beaches become our buyers. They look throughout the summer and then our fall and winter become yet another flurry of buying activity. The selling and buying season used to be spring and summer, and now it is a yearly market, as evidenced by the significant sales.
PBN: Some of your recent sales are traditional cottages that would seem to be rarely on the market. Has something changed in the attitude of owners? Do they recognize it’s a good time to list?
JOYAL: Many times, the cottages have been in families for years and years. It just becomes an economic decision or an estate-planning decision. I think every seller has their own reason when and if to sell and there is no distinctive reason. That being said, the economy is on an uptick and housing is following suit.
Mary MacDonald is a PBN staff writer.
