Monday, October 19, 2015 / by Nathan Clark
Today, we'll discuss what's going on with the Rhode Island real estate market. I'll go over some common questions that I get from buyers and sellers alike.
Is Rhode Island a buyer's or seller's market?
Really, every town and city is different. There are a few benchmarks we can look at to see if it's a buyer or seller's market, and one of those is supply versus demand. Markets with less than 4 months of inventory are in a seller's market. Prices improve and sellers can get top dollar for their homes.
Between 4 and 6 months of inventory is a balanced market. That means if no other homes came on the market, it would take 4 months to sell the homes currently listed. In a balanced market, neither buyers nor sellers have the advantage.
If a town has 7 months of inventory or more, that town would be in a buyer's market. There would be a lot of competition for sellers, and buyers would have the upper hand in negotiations.
We have proprietary data on every town and city in Rhode Island, so if you want to know more about your area in particular, we would be happy to share that information with you.
What do interest rates look like?
Earlier this month, the federal government met and talked about rising rates. There was a lot of speculation that rates would go up. Historically, if interest rates climb, house prices fall because the higher interest rates would mean higher monthly payments.
The good new is the rates did not go up. In fact, we might even see rates get a little lower. Right now, the market is very healthy.
What does all of this mean for buyers and sellers?
Predicting the future of the real estate market can be difficult. It's important to look at today's market. Pay attention to present values in order to make your predictions for the future.
If you have any questions about your home in particular or any other real estate questions, please do not hesitate to give me a call or send me an email. I would be happy to help you!