Once considered a hidden gem for luxury-home offerings, Rhode Island is gaining more attention in the high-end real estate market and attracting a more-diverse group of buyers from across the globe who seek out a piece of the state’s 400 miles of shoreline.
Rhode Island’s top 10 most-expensive sales of 2017 line the coast from Bristol to Westerly. Topping the list is Newport’s Seafair at 254 Ocean Ave., purchased by television personality Jay Leno for $13,500,000 through a limited liability corporation called Mavis House LLC (Leno’s wife’s name is Mavis).
“The sale of Seafair and all of these high-end sales send the message that Rhode Island is a great place to live,” said Paul A. Leys, broker and owner of Gustave White Sotheby’s International Realty, which facilitated both sides of the Seafair sale. “These were great sales for the high-end market and for the market in general. Our job is to not only sell inventory, but to sell Rhode Island as a destination. Word is out, and people are starting to come here.”
John Hodnett, principal broker and owner of Lila Delman Real Estate International, said his agency is “doing as much as we can to grow awareness about this area through our marketing efforts and social media. We’re constantly reaching out to people from around the world to expose our properties to as many people as possible.”
In the internet age, today’s homebuyer – particularly in the high-end market – is more-geographically flexible than ever before. Given that, what brings international buyers to the smallest state in the United States to invest? The answer, overwhelmingly, is relative value. It is far more affordable to purchase a luxury property in Rhode Island in relation to other places high net worth individuals may be looking to invest.
“If a buyer is looking at similar homes in California or even the Hamptons, it might be $25-$30 million,” said Leys. Other Ocean State perks include more-convenient travel and less traffic than other luxury destinations, more-favorable property taxes and its gamut of social and cultural offerings.
However, while interest in the state’s waterfront properties may be growing, the inventory of homes for sale above $1 million has been stagnant for a few years now, indicating a seller’s market.
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SALES GROWTH: The number of homes sold for $1 million or more in 2017 far exceeded any year dating to 2005. / SOURCE: R.I. ASSOCIATION OF REALTORS[/caption]
“The 2017 real estate market experienced the same issue at every price point, which is a lack of inventory. There’s great pressure on the supply side, because there’s a great demand,” said Judy Chace, broker and owner of Mott & Chace Sotheby’s International Realty. Her agency has resorted to reaching out to past clients and asking them whether they’d consider selling their home. Sometimes, said Chace, it works.
“We recently had a buyer who had very specific amenities he wanted that we couldn’t find in the existing inventory. We’re currently in the process of working with past clients to show their homes, which are not listed for sale, to the buyer. Another client told us, ‘If you can find me X, I’ll sell Y.’ That’s really how we’ve tried to sell this inventory problem.”
In 2017, more homes sold for $1 million or more – 272 – than any other year since 2005, continuing an upward trend since the depths of the Great Recession in 2009.
Despite that lack of inventory, though, optimism is high for 2018.
“The numbers are on our side,” said Rhode Island Association of Realtors President Joseph Luca. “When you look demographically, people most frequently buy homes in the 30-34 age range. In the next few years, the number of people entering that prime homebuying bracket is going to continue to increase. More demand means more pressure on the market, increasing both the value of homes and the demand for new construction. I think the market will respond to the pressure. Be it zoning changes or relaxed lending guidelines, the market will meet the demand and continue to grow.”
Luca, who recently traveled to France to attend MIPIM, the world’s largest real estate conference, said the issues we face here are nothing compared to other places around the world.
“Rhode Island has so much going for it,” he said. “It’s fairly easy to sell people on Rhode Island, we just have to let them know we’re here.”
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1. Seafair 254 Ocean Ave. Units A, C, D & E, Newport PRICE: $13,500,000 DATE SOLD: Nov. 30, 2017 BUYER: Mavis House LLC SELLER: Branch Canyon Properties Inc./Richard L. Bready BROKER: Gustave White Sotheby’s International Realty (buyer and seller) YEAR BUILT: 1936 BEDROOMS: 12 BATHROOMS: 12 full, 3 half LIVING SPACE: 15,851 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $17,500,000. / COURTESY JOCK WEST[/caption]
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2. Ocean Lawn | 51 Cliff Ave. | Newport PRICE: $11,650,000 DATE SOLD: Jan. 27, 2017 BUYER: Alexis DeJoria and Tom R. Grimmett SELLER: Anna May Conese BROKER: Lila Delman Real Estate International (seller); RE/MAX Flagship Inc. (buyer) YEAR BUILT: 1889 BEDROOMS: 13 BATHROOMS: 10 full, 1 half LIVING SPACE: 16,237 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $18,500,000. Sold for $6,600,000 in December 2000. / COURTESY LILA DELMAN REAL ESTATE INTERNATIONAL[/caption]
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3. 25 Ocean View Highway | Westerly PRICE: $11,000,000 DATE SOLD: Oct. 6, 2017 BUYER: 25 Ocean View Highway LLC SELLER: The Evy E. Lynch Qualified Personal Residence Trust BROKER: Randall, Realtors (buyer and seller) YEAR BUILT: 1996 BEDROOMS: 5 BATHROOMS: 6 LIVING SPACE: 7,347 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Sold for $1,200,000 in May 1993. / COURTESY RANDALL, REALTORS[/caption]
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4. Wickiup | 12 Westerly Road | Westerly PRICE: $7,425,000 DATE SOLD: Aug. 11, 2017 BUYER: Michael W. Clark and Colleen M. Ferguson SELLER: Havor Mikel and Janet Halvorson BROKER: Mott & Chace Sotheby’s International Realty (buyer and seller) YEAR BUILT: 1900 BEDROOMS: 8 BATHROOMS: 6 full, 1 half LIVING SPACE: 7,266 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $8,200,000. Sold for $5,000,000 in August 2012. / COURTESY MOTT & CHACE SOTHEBY’S INTERNATIONAL REALTY[/caption]
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5. Wind Hill | 55 Ferry Road | Bristol PRICE: $6,750,000 DATE SOLD: Nov. 20, 2017 BUYER: Roger Williams University SELLER: The Livingston Family LLC BROKER: Lila Delman Real Estate International (seller); Gustave White Sotheby’s International Realty (buyer) YEAR BUILT: 1890 BEDROOMS: 10 in manor house; 4 in carriage house; 4 in gate house BATHROOMS: 6 full, 3 half in manor house; 2 full and 1 half in carriage house; 2 full in gate house LIVING SPACE: 12,834 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $6,995,000. / COURTESY LILA DELMAN REAL ESTATE INTERNATIONAL[/caption]
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6. 395 Tuckerman Ave. | Middletown PRICE: $6,075,000 DATE SOLD: Nov. 8, 2017 BUYER: JDRI LLC SELLER: Janice M. DeGaetano Trust BROKER: Gustave White Sotheby’s International Realty (buyer and seller) YEAR BUILT: 2003 BEDROOMS: 9 BATHROOMS: 6 full, 1 half LIVING SPACE: 7,396 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $6,450,000. Sold for $5,151,000 in June 2007. / COURTESY GUSTAVE WHITE SOTHEBY’S INTERNATIONAL REALTY[/caption]
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7. Northpoint | 1088 East Shore Road | Jamestown PRICE: $5,750,000 DATE SOLD: April 13, 2017 BUYER: Richard A. and Kelly A. Bates SELLER: Mark D’Andrea BROKER: Lila Delman Real Estate International (buyer and seller) YEAR BUILT: 1992 BEDROOMS: 5 BATHROOMS: 5 full, 3 half LIVING SPACE: 6,400 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $6,400,000. Sold for $5,600,000 in May 2010. / COURTESY LILA DELMAN REAL ESTATE INTERNATIONAL[/caption]
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8. 99-D Sakonnet Point Road | Little Compton PRICE: $5,350,000 DATE SOLD: Nov. 3, 2017 BUYER: 99D Sakonnet Holdings LLC SELLER: Christopher S. Sargent, Trustee BROKER: NA YEAR BUILT: 1968 BEDROOMS: 5 BATHROOMS: 5 full, 1 half LIVING SPACE: 6,207 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: NA[/caption]
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9 (tie). The Beacon | 92 Noyes Neck Road | Westerly PRICE: $4,500,000 DATE SOLD: June 1, 2017 BUYER: Timothy and Kelsey Johnson SELLER: The Wheeler Family Gift Trusts BROKER: Lila Delman Real Estate International (buyer and seller) YEAR BUILT: 1902 BEDROOMS: 6 BATHROOMS: 5 full, 1 half LIVING SPACE: 4,122 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Previously sold for $800,000 in 1998. / COURTESY LILA DELMAN REAL ESTATE INTERNATIONAL[/caption]
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9 (tie). Firstlight Cottage | 320 East Shore Road | Jamestown PRICE: $4,500,000 DATE SOLD: April 20, 2017 BUYER: Peter and Lindsey Schieffelin SELLER: Stephen Evangelista BROKER: Lila Delman Real Estate International (seller); The Marketing Directors RI LLC (buyer) YEAR BUILT: 2013 BEDROOMS: 5 BATHROOMS: 5 full, 1 half LIVING SPACE: 6,550 square feet PREVIOUS PRICE/ORIGINAL LIST PRICE: Originally listed for $4,950,00. Sold for $1,500,000 in 2004. / COURTESY LILA DELMAN REAL ESTATE INTERNATIONAL[/caption]
