Saturday, July 16, 2022
The Rhode Island real estate market is a dissonance of conflicting data points. Currently, it is located at the intersection of hangovers after COVID, and interest rates and prices continue to rise.
And we have the potential to move on to another major rate hike. At its September meeting, the Federal Reserve expects a rise of 75 to 100 basis points to cool the US’s fierce inflation. Currently, it is 9.1%, which is the highest value for more than 40 years.
“It looks like the Fed is trying to figure out something, they don’t know the big picture. People are competing for real estate, and those real estate bids far more than they list. Real estate is certainly driving inflation, so prices have risen not only over the last two years, but over the last five years, “said Robert Rutley of Mott & Chace at GoLocal LIVE.
“There is no supply. There are 1 million millennials. [nationally] There are 25 to 35 looking for their first home, and nothing to buy, “Ratley said.
“Raising interest rates makes it harder for people to buy homes, and investors who buy apartments at higher interest rates will pass on that extra cost to their tenants,” Latley said. increase. “Therefore, this not only knocks out quite a few people from the housing market, but also those who need to take out a mortgage and have a tight budget, as well as they have many multi-family new prices. I can’t afford it. “
New record-Median price of RI single-family home, now $ 430,000
The average price of a Rhode Island single-family home was $ 430,000, a record high last month, up 11.7% from June 2021.
Since July 2020, the average monthly sales price has increased by more than 10% from the previous year.
Rising interest rates exacerbate the problem of affordability for state homes and curb sales of Rhode Island single-family homes. This was down 17.6% year-on-year last month. June contract sales were not closed by the end of the month, but were down 25.4%. This is a sign that activity will continue to slow down over the next few months.
“Last month, June had the lowest sales since 2014. We turned the corner, but it still takes a long time to reach a balanced market. Chairman of the Road Island Real Estate Agents Association. Agueda del Borgo said:
According to Del Borgo, housing supply in the market last month was 1.8 months from a low of 0.84 months earlier this year, but far from the six-month supply that characterizes a market with a balanced supply and demand. It was a thing. ..
“Rhode Island is still lagging behind most other states in the start of construction, and many homeowners who recently refinanced to low interest rates are hesitant to move and abandon favorable mortgage rates. These are two major factors that exacerbate housing shortages, “Del Borgo said.
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