Real Estate Prices Are Cooling in Some U.S. Areas - Just Not in Rhode Island
Real Estate Prices Are Cooling in Some U.S. Areas - Just Not in Rhode Island
That is good news for many Americans, but that trend is not in Rhode Island and other areas in the Northeast.
As GoLocal previously reported, Providence is expected to be the third hottest real estate market in the United States.
“Americans looking to purchase a home in certain U.S. cities might be pleasantly surprised to find the tide is shifting their way this spring after years of challenging affordability,” reported CNN.
“There were 3.7 months of for-sale supply on the market in January, the most in six years, according to a recent Redfin analysis. That means it would take more than three months to sell all the homes that were listed for sale in January, given monthly average sales volume,” according to the report.
Some areas of Florida have cooled. In cities like Cape Coral and Miami, there are more than 11 months of home supply on the market, according to Redfin. Fort Lauderdale, West Palm Beach and Jacksonville are also strong buyers’ markets.
Not In Rhode Island
Ben Scungio of Mott & Chace Sotheby’s International warns that the lack of inventory is one of the major factors in the rising home prices in Rhode Island.
In a normal period, the Rhode Island market might see 2,000 to 3,000 homes on the market at this time of year, but there is only a fraction of that now.
“Presently, there are only 763 single-family homes on the market in the state of Rhode Island right now. That is low. 216 condos and 175 multi-families, I mean, the numbers are low,” said Scungio.
“I was just talking with some of my colleagues this week, and at price points between, say, $350,00 to $550,000, they see 20 to 30 groups come through open houses again. That is like 2021 levels, so it's very interesting. We're just going to buckle up,” said Scungio.
Median Price of a Home to Exceed $500,000 in RI?
Scungio said Rhode Island is looking at the median price of a single-family home over $500,000 in the near future. Presently, the median price is $470,000.
“Prices are going to continue to increase. The national statistics are a 5% increase in property value this year, and the Northeast has always been a few points higher than that, so even if we see 7% appreciation this year, it's got to come over $500,000,” said Scungio.
But he also warned to expect the unexpected.
“The real estate market is as unpredictable as ever it's been. We've been scratching our heads since 2020 when the pandemic started and we're just like, what is going on here with this market? Nothing makes sense — you can look at the historical data, you can try to project what's happening, and everybody has pretty much been wrong,” said Scungio.