Homes with Holly

Rhode Island Housing Market 2022 Recap

The Rhode Island housing market is shifting and homeowners, buyers and sellers, are on edge. What will 2023 bring? Will the market crash? Will inventory rise? Will interest rates drop? These seem to be the most common questions floating around the market. 

Let’s take a look at what 2022 had to offer and how that will affect what is to come in 2023. 

Housing Market Trends 

In September, the median home price in Rhode Island was up 9.8% compared to 2021. Clearly this year has been a seller’s market overall. It is all about supply and demand. The inventory of homes hit record lows this year at about 3 months of inventory and dropping lower than 2 months supply. According to Redfin data, the total number of homes sold was at 25.0% with a median of 31 days on the market. Interest rates were up about 3.8 points, and mortgage applications were 41% lower than last year. 2022 was not the best year for market trends.

What is affecting the housing market?

There are several aspects that are affecting the Rhode Island housing market. The first one being mortgage rates. With higher rates, many buyers were priced out of the market. However, one thing about mortgage rates is, you can always refinance, so do not let this scare you out of looking for a home. The second factor is the economy. It is no secret that the US economy is not on the up and up, just look at the gas prices. Third being demographics. Major changes in demographics can have an impact on current trends. Lastly, government policies can impact the demand for real estate. Understanding current government policies can help you predict the demand and supply and identify potentially false real estate market news. An experienced real estate agent, like myself, can help you navigate the current market to help you assess whether you should buy or sell your home. 

Will the housing market crash? 

This is the question most of you are dying to know the answer to. Unfortunately, I do not think so. Economists believe the market will slow down, but not crash soon. Why? Low inventory, lack of new construction homes, several new buyers, strict lending standards, and a drop in foreclosures. We will see prices start to fall but at a slower pace. In November there were 2,845 homes for sale, which is about 2 months of supply. This shortage is causing buyers to bid up, so unless something changes in 2023, this does not indicate a crash anytime soon. If you are wanting to sell your home in New England, now is the time. 

Takeaways

The 2022 Rhode Island real estate market is still on fire, but seems to be cooling fast. Prices will fall, but not crash. If you have excellent credit you can still get a low interest rate. If there is a high demand of buyers in your area, you can benefit from selling your home. A trusted real estate agent is key to buying or selling your home in the current market. 

If you are ready to sell or buy a home in Rhode Island, contact me today. With over 10 years of experience, I have navigated all types of housing markets in New England and will do my best to make sure your home buying/selling experience benefits you!