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Tick Tock: Historic Clocktower Property Swift Sale Turns Heads

Newport-Now.com, November 6, 2009 by Andrea E. McHugh

NEWPORT, R.I.--Local real estate agents and observers were abuzz last week about the sale of 0 Dixon Street in Newport.  Listed at $2 million, the 5-bedroom, 3-bath, nearly 5,000 square foot single family home sold in just 9 days--a feat in any market. Is this the sign of market recovery that everyone's been looking for? "That is clearly difficult to project; however, it might indicate that in this particular price point, there are buyers who are looking for a very special property and are willing to move forward when the right property comes on the market at the right price, says listing agent Melanie Delman, who sold the home just under asking price for $1.9 million.

According to recently released 3rd quarter figures, Rhode Island's single-family housing market showed hopeful signs with sales showing an increase of 21% compared to the same quarter the year prior.  The boost, seen in areas nationwide, is widely attributed to the $8000 Federal Housing Tax Credit offered to qualifying first-time homebuyers.  Though set to expire this month, it's widely speculated the program will be extended into 2010.  Meanwhile, as early as today, President Obama is expected to sign a bill to expand the tax credit to include move-up buyers who owned their homes for at least five years.

While the existing tax credit applies to homebuyers purchasing primary residences costing $800,000 or less, Delman says even those seeking luxury real estate are searching for smart buys in the volatile market.   "Buyers at every price point are looking for value, however they define it, even the high-end buyers.  When they find a property that they believe has long-term value, they will move quickly if they are able to do so," says Delman, who called the Dixon sale "one of the quickest in recent history."  She notes that in this particular case, both parties came to terms swiftly.  "We had an astute buyer and seller who understood and appreciated its value from the very beginning," says Delman, citing the fair price point as a motivator.  "Pricing is key, especially in this market.  There is usually some level of pent-up demand in this price point, between $2 million and $3 million, as there can be fewer especially unique properties available at any given time."

The speedy 9-day sale of the historic clocktower home turned heads as homes in Newport during the3rd quarter spent an average of 134 days on the market (up from 107 in 2008.)  Only time will tell if the sale is a sign of a long-term turnaround, but if it is any indication, the real estate market may be inching closer toward a much needed recovery.

NewportNow.com, November 6, 2009

by Andrea E. McHugh, Staff Writer