Did declining sales in January slide into February?
Housing inventory is like "fuel oil" for real estate - it keeps the market moving. In January, closed Single Family sales in Rhode Island fell 9% from a year earlier while the Median Sale Price increased 9%. The limited housing inventory is clearly hindering sales activity in the Ocean State. Also, limited new construction over the last ten years has played a major role in the current "inventory crisis" that is driving prices upward.
- RI Single Family Jan 2018: 611 Sales with Median Sale Price of $244,900 at $187 per SF and 62 days on the market vs.
- RI Single Family Jan 2017: 672 Sales with Median Sale Price of $225,000 at $170 per SF and 47 days on the market.
Counterintuitively, when mortgage rates increase moderately in a good economy, prices appreciate as many prospective buyers immediately jump off the fence to guarantee they get the lower rate. In February, closed Single Family sales increased 2.7% from a year earlier, despite the low inventory, while the Median Sale Price increased 8%.
- RI Single Family Feb 2018: 576 Sales with Median Sale Price of $251,250 at $185 per SF and 50 days on the market vs.
- RI Single Family Feb 2017: 561 Sales with Median Sale Price of $232,000 at $166 per SF and 62 days on the market.
Bottom Line: Hill Harbor's Relocation Team is reporting buyer traffic is stronger than last year. And, if you are going to sell, now is the time to take advantage of the ready, willing, and able buyers that are still searching for a home like yours. Even if you are just "fact-finding," contact Hill Harbor Group today for a no obligation free home valuation. Please visit www.hillharbor.smarthomeprice.com to get you personalized home value estimate, instantly.
How is the Single Family market between $600,000 to $1,000,000 performing?
Over the past 6 months (9/2017 - 2/2018) 295 Single Family homes sold in Rhode Island with a Median Days on the Market of 70. During the same time period a year earlier (9/2016 - 2/2017) 201 Single Family homes sold with a Median Days on the Market of 100. 46.7% increase in units sold and 30% drop Days on Market.
Strictly looking at units sold and time on the market, overall this price segment has made substantial gains.
Bottom Line: This is a "broad brush” overview and every municipality in Rhode Island has a different story. Additionally this price segment overlaps with large inland homes and coastal homes, which are completely different. Please contact a Hill Harbor Realtor today to discuss your specific situation and future move.
Is now a good time to rent?
People often ask if now is a good time to buy a home, but nobody ever asks when it's a good time to rent. Regardless, we want to make certain that everyone understands that today is NOT a good time to rent in the Ocean State.
Rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead.
Bottom Line: When you rent, you transfer your wealth to your landlord by paying their mortgage. One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are thinking about buying or selling, contact a Hill Harbor Realtor today for a no obligation consultation and free home valuation.