Housing trends come and go.
Housing markets go through varying patterns, both in price points and who dominates the market. One month it could be a buyer’s market – the next month, a seller’s market.
You never know what to expect in a housing market – it can all change quickly.
Let’s look at the Rhode Island housing market and consider what the experts are predicting for it.
Rhode Island Real Estate Market
ABC6 News believes that if you’re looking to enter the Rhode Island Housing Market anytime soon, it will present you with both opportunities and challenges.
Rhode Island is not an exemption from the housing crisis that’s gripped the nation recently. Most states, in fact, are suffering due to a lack of affordable housing.
However, it’s not all doom and gloom. While supply is low now, it will steadily increase over time and take some of the pressure off the high prices that are currently trending.
They also predicted that this trend that sellers celebrate for the last few years will soon give way to another. This could spell a slowing down of house prices. As also predicted, they are only expected to rise 4 percent in 2018.
This is down from the national average of 6 percent last year. However, all is not lost – it’s still above the general average of 3 percent.
Another trend that experts are predicting is a focus on entry-level housing. Millennial’s that are keen to break into the property market is causing an increase in demand for this kind of housing. With a steady increase in overall supply, house prices should continue to decrease.
What to Expect in the Rhode Island Housing Market
This past year has been an excellent year for the Rhode Island housing market. Steemit explains that the average home spent a record 59 days on the market before being sold, which is a great turnaround for sellers and their families alike.
This number is so good that it’s down 18 percent from the same time last year. However, if you took a look at this number two months ago, you’ll see that it’s a 19 percent increase.
House prices have been rising an average of 13 percent a year (compare 2013 Rhode Island Housing MarketCLICK HERE to 2012 Rhode Island Housing MarketCLICK HERE). If predictions come true it will continue to do so.
The number of homes available for sale has dropped an average of 9 percent each year for the past few years. Unless there is a sudden influx of home inventory and construction, this number should continue to be similar over the next couple of years.
However, there are a couple of factors that make the future look bright. A healthy economy and high levels of employment mean that the gap is being filled somewhat. Unfortunately, this isn’t able to cover the demand entirely.
The Rhode Island housing market is likely to stagnate through the next month or two. However, a substantial bounce back is predicted for late winter through to early spring.
What You Should Know About Rhode Island Real Estate
Christine Dunn of Providence Journal reflects these predictions from Steemit and adds that she believes the most significant problem currently is the lack of inventory.
Detailing the Rhode Island housing market, she says that her figures show a steady increase in house sales over the last five years as well.
Joseph Luca discusses this. He explains that the property market in Rhode Island was hot last year. Houses were spending very little time on the market. He echoes Christine’s sentiment that the biggest issue currently is the lack of homes available for sale.
He continues by saying that starter homes took up a lot of the sales in 2017, and he predicts this trend will continue. However, higher-end homes were also in demand.
Condos will become popular if housing trends continue. They are a great alternative for buyers who are given limited options when it comes to finding an ideal single-family home. The lower price points of condos give first-home buyers a chance to get their foot in the door.
Both sales and median price increased in 2017, and are set to do so in the coming year.
Buying Rhode Island Real Estate
It’s not easy to predict the market.
There are many factors to consider when predicting housing market trends. From the current economic climate to the number of houses available to sell, predicting property trends can be a fickle business.
The best you can do is look into the future with the past in mind. Previous housing statistics can help you get a rough idea of what to expect as we approach another year with the Rhode Island housing market.
Remember that nothing about the property is guaranteed. Take these various factors into consideration, and you’ll be prepared for anything.