Today, I’m sharing some critical information about what’s happening in Rhode Island’s real estate market.
First, inventory is currently very limited throughout the state. There are only around 800 homes for sale, which is very frustrating if you’re a buyer. It can be difficult to find your dream home. If you’re a seller, you may be apprehensive about selling since you might have to finance a new home at a higher rate. Therefore, this is a very difficult market for both buyers and sellers.
In addition, homes are staying on the market longer than last year—30 to 45 days, or about 15 days longer than last year. However, if your home is priced correctly, well-photographed, and staged in good condition, it could go under contract within just a few days.
If you are hoping to buy a home, you need to consider the current interest rates. Last year at this time, your rate would have been about 3.5%, and the monthly costs for a $500,000 home would have been around $2,245 a month. Now, at a rate of 6.375%, monthly costs for that same price will be around $3,119. This varies depending on location, property taxes, and homeowner’s insurance, but overall, costs have gone up.
One exciting note is that the state is offering first-time homebuyers a $17,500 grant for their down payments and closing costs. That is something to take advantage of if you meet the income requirements. Also, there are more great opportunities for those on active duty.
For sellers, my best advice is to hire an agent and ensure your home is in good condition. Keep your home as pristine and tidy as possible—I offer my clients the use of my stager to complete all the repairs. Also, know that nothing is worse than an overpriced property. It will sit on the market for too long, then people will wonder what’s wrong with it. If you aren’t showing the home within seven days of listing, that’s a good indicator that the price isn’t right.
If you have any questions about the state of the Rhode Island housing market or real estate in general, please feel free to reach out to me by phone call or email. I would be happy to serve as your resource for all of your real estate needs.