Geb Masterson is a senior global real estate adviser at Mott & Chace Sotheby’s International Realty in Westerly. He first joined the real estate industry in the late 1980s, right out of Georgetown University, before leaving for work in the fashion industry in New York City. His turn into fashion took him for two years to Europe, where he met his wife and then had two children.
Masterson and his family moved to Rhode Island from California in 2010. Masterson, who previously served as owner and president of a branding and marketing firm called Kena Kai Design, said he joined Mott & Chace in 2019 due to its brand recognition and marketing team.
PBN: How does the price of homes in Rhode Island compare to Massachusetts right now? And why do you think there is this disparity?
MASTERSON: There has always been a disparity between the median price for homes in Massachusetts and Rhode Island, with Massachusetts being the more expensive. Historically, this has largely been due to industries within these two states and the jobs these states offered. Massachusetts, being the more populous state, had more higher-paying jobs – in technology, finance, etc. – and these workers wanted homes near their offices. This then causes basic supply-and-demand issues that naturally drive up home prices.
PBN: Are there people coming from out of state budget shopping in Rhode Island, and what are your observations about this?
MASTERSON: Yes. During [the COVID-19 pandemic], the United States, as a whole, saw the largest migration from urban areas to more suburban areas due to changes within the workforce that allowed employees to work remotely.
A large portion of our workforce has now returned to a more traditional workweek, but of these, many are still allowed to work a portion of their week remotely. For these workers, the option of living further away from work – because you now only need to commute two to three days, versus five days a week – and if you could find an area that’s significantly less expensive such as Rhode Island, then this option becomes very appealing. Rhode Island has a lot to offer former Mass. residents, and if the job/commute allows the opportunity to work here in Rhode Island, why not explore Rhode Island?
Will this disparity last? I believe it will last longer than people expect. Naturally, with supply-and-demand scenarios, inflows and outflows of resources should balance out eventually, but I believe that the work-remote population will be the minority for some time. The more traditional workforce will continue to drive up pricing around major metro areas. Boston prices will continue to appreciate, and this will keep driving people to Rhode Island housing opportunities.
PBN: We've heard for a long time now that residential real estate inventory in Rhode Island is critically low. Is that still the case?
MASTERSON: Yes, our inventory of properties is still extremely low. There have been slight improvements here and there, but for the most part it is still very competitive, especially at the lower to middle tier of pricing. The low inventory is still causing bidding wars for properties that are priced appropriately. This makes purchasing a home extremely frustrating for the first-time homebuyer.
PBN: Are there any signs that this problem could ease up? What needs to happen?
MASTERSON: Personally, I do not see any signs of this easing up anytime in the near future, and I believe buyers, and their agents, need to realize this is the new norm. They may be “waiting for the rates to drop,” but in my view, they should be getting into something now and then refinance when the rates do drop. Trust me, if you are “waiting,” there are 100 other buyers also waiting, and they will all be bidding against you when rates drop. In terms of the inventory situation getting better, this could take years. The legislation for accessory dwelling units is a great start, as we simply need more housing.
PBN: What's your advice for clients in Rhode Island that are planning to sell their homes here? What should they do to maximize their returns?
MASTERSON: Hire the right firm and agent to market your home, plain and simple. For most people, their home is their largest single asset. Why would you entrust that asset with just anyone? You need to hire someone in the same way you would hire a trusted financial planner. You will never know the true value of your home if you do not market it correctly and expose it to the largest possible audience.
Everything today is “marketing.” Go with a firm with a recognized brand, and I don’t mean just recognized locally, as many of our buyers are simply not local. I have buyers from throughout New England, and across the country, and a global network of connections. If you do not expose your home to every possible buyer, you are likely leaving money on the table. This is the No. 1 item to maximize your returns.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.
