Home prices in Rhode Island have continued to climb in 2017. Prices are up 7.7% for the year. Economists are expecting an additional increase next year of 3.6% Home price increased have been dramatic in recent years climbing from around $200k in 2012 to the current $298,000. What has led to this steep increase? The primary driver has been lack of inventory coming on the market. There just aren’t enough homes for sale to meet current buyer demand.
Sellers frequently choose to update their homes prior to placing them on the market. Some of the most common items sellers choose to update include the kitchen including appliances, new paint, small remodeling projects such as a fireplace mantel or a wall accent in reclaimed lumber, or an updated bathroom. Others choose to replace carpet with hardwood flooring. Lumber Liquidators is frequently the place that price conscious sellers will find affordable options for this type of project. These decisions have helped to drive up prices.
It has been a difficult market for first time buyers who are competing against each other and driving up prices through multiple offer situation. Many of the real estate agents we work with have expressed their frustration at not being able to find homes for their first time buyers. Many young people who contact a realtor expecting to purchase a home spend months looking at homes and never end up buying. They frequently discover that they will have little choice but to rent a home until the market cools off.
If you’re considering buying a home in Rhode Island, it would be beneficial to contact a local real estate agent who can send you listings that include homes in your desired area and price point. They can also help to educate you about the importance of obtaining a pre-approval letter prior to beginning your home search. An approval letter will allow you to make an offer when you find a suitable home and the offer will be taken seriously by the sellers because they know you are approved to make the purchase.