Realtors still bullish on Warwick market - Signs of recovery slowly appearing

Warwick — As a realtor for more than 20 years, Terry Gavan has seen the highs and lows of the market here in Warwick and she is still standing. Gavan, co-broker-owner of Century 21 Mystic Valley Real Estate, said despite all of the claims of a not-so-great real estate market, this is a great time to buy a house. “The interest rates are great and prices are down,” said Gavan. “It’s an excellent time to buy.” Diane Massey, a realtor with RE/MAX Benchmark Realty Group in Warwick, also said this market has a lot going for it. “For buyers, it has never been a better time to buy,” Massey said. But timing is everything. Interest rates are between 5.8 and 6 percent now and Massey said the estimates are they will go up to around 6.5 percent later in the year. “Buyers are coming out now and they have to understand we are at a point where you don’t want to miss these mortgage rates,” she said. “Plus, there are bargains out there right now. Low interest rates plus good prices. This is a good time to buy.” On the flip side of that, however, are the sellers. Prices may not be as high as they were a few years ago, but that shouldn’t be a surprise. “We just had an historic run-up, an extraordinary run-up in prices,” said Massey. “People thought it would never stop. They pushed prices to unrealistic levels. It is being corrected now, stabilized. That’s good for the market.” According to a report in the Times Herald-Record this week, home sales and prices fell in Orange County during the first quarter of 2008. The newspaper, citing data released by Orange County Association of Realtors, said the median sale price fell 1.6 percent to $310,000 from $315,000 a year ago. Prices in New York went up 115 percent from 2000 to 2006, on average, according to Massey. A drop now, she said, is not a bad thing. Especially for those buyers. Gavan said she is seeing more and more young people looking for a home. “Warwick is a highly desirable place to live,” Gavan said. “We are close to New York City. Close to the shore area. We have a beautiful village. This isn’t a place where people come to flip a house. People come here to live. It’s the quality of life here that draws people.” And for those who need to sell and buy, Gavan said, you have to look at the whole picture. “Even if you don’t make as much when you sell your house, you’ll do great on the other side when you buy,” she said. “People are getting great deals when they’re buying. It’s all relative.” National statistics are certainly not great news for the market. But, according to the Associated Press, depending on where you live, the market isn’t as bad as in other places. The northeast, for example, saw a jump in existing home sales of 11.3 percent in February. And with spring here and summer coming, the hottest season is upon us. Still, sales are down. The number of closed sales is down 28 percent comparing March 2007 to March 2008. “The market is down, but not as bad as it sounds,” said Gavan referring to media reports. “Houses are moving; they are beginning to move.” “We are showing a trend toward recovery,” Massey added. “And what I like to say about the real estate market—it is what it is and it’s not what it’s not. Still, it is a good time to be a homeowner.” Editor’s note: Terry Gavan is married to Roger Gavan, the longtime reporter and photographer for The Warwick Advertiser.