Rhode Island Real Estate Market Report January 2024

Rhode Island Single Family Market Report | January 2024 Snapshot"

Welcome back, Rhode Island homeowners and prospective buyers! As we dive into the real estate scene for January 2024, we've got some exciting trends and figures to share about the single-family housing market. Whether you're thinking about selling, buying, or just curious about the state of real estate in the Ocean State, this blog post is your go-to guide.

1. Months of Inventory: A Seller's Market Continues The current months of inventory in Rhode Island stands at a brisk 1.4 months. This indicates a continued seller's market, where demand outpaces the available supply of homes.

2. Median Sale Price: Steady Growth at $441,750 The median sale price for single-family homes in January 2024 is a solid $441,750. This figure reflects a steady upward trend in home values, showcasing the resilience and attractiveness of Rhode Island's real estate market.

3. Number of Sales: 442 Homes Find New Owners In January, 442 single-family homes changed hands in Rhode Island.

4. Pending Sales: 726 Homes Ready for Closing Looking ahead, we see an encouraging 726 homes currently in the pending sales stage.

What Does This Mean for You?

• Sellers: With low inventory and a high demand for homes, now is an opportune time to sell.

• Buyers: While the market may be competitive, the steady growth in median sale prices suggests that investing in Rhode Island real estate remains a wise decision.

If you are ready to enter the Rhode Island real estate market as a buyer or seller contact a local real estate expert for more information about the market.

Real Estate Institute of Rhode Island

Home Values and School Ratings In Rhode Island

The Impact of School Ratings on Home Values: Unveiling the Real Estate Equation

In the world of real estate, numerous factors play into the value of a home. Location, size, amenities, and neighborhood charm are all essential components that contribute to a property's worth. However, one often underestimated factor that can significantly influence home values is the quality of nearby schools. According to Rob Scaralia of the Real Estate Institute of Rhode Island the correlation between school ratings and home values is a dynamic relationship that both homebuyers and sellers should understand.

Understanding the Connection

The connection between Rhode Island school ratings and home values is not merely coincidental; it's deeply rooted in human behavior and economic principles. High-performing schools tend to attract families with children who prioritize education and are willing to invest in their children's future. Consequently, areas served by these schools often experience increased demand for housing, leading to higher property values.

The Buyer's Perspective

For many homebuyers, especially those with children or planning to start a family, the quality of nearby schools is a top priority. Prospective buyers often research school ratings and district performance extensively before making a purchasing decision. A high school rating can serve as a reassurance of a quality education for their children and provide peace of mind regarding their long-term investment.

The Seller's Advantage

For sellers, proximity to top-rated schools can be a selling point that adds significant value to their property. Homes located within desirable school districts often command higher asking prices and tend to spend less time on the market compared to properties in lower-rated school zones. Capitalizing on the allure of reputable schools can give sellers a competitive edge and maximize their return on investment.

Impact on Property Values

Studies have consistently shown a positive correlation between school ratings and home values. A report by the National Association of Realtors found that home prices in areas with above-average schools were 49% higher than those in areas with below-average schools. Furthermore, the impact of school quality on property values extends beyond the immediate vicinity of the school, influencing surrounding neighborhoods as well.

Navigating the Market

For both buyers and sellers, understanding the role of school ratings in the real estate market is crucial. Buyers should consider school quality as a key factor in their home search, balancing it with other preferences and priorities. Working with a knowledgeable real estate agent who understands local school districts can provide valuable insights and guidance.

Sellers should leverage the appeal of nearby schools in their marketing efforts, highlighting the advantages of living in a sought-after school district. Professional staging and strategic pricing can also enhance the perceived value of the property and attract interested buyers.

Final Thought

In the complex equation of real estate valuation, school ratings emerge as a significant variable that can sway home values. The quality of nearby schools not only impacts the desirability of a neighborhood but also plays a crucial role in shaping the buying and selling decisions of homeowners. By recognizing the influence of school ratings on home values, both buyers and sellers can make informed choices in the ever-evolving real estate market. If you are considering selling or buying a home contact a local real estate professional for a professional opinion of value.

Baby Boomers and the Real Estate Market- A Silver Tsunami

Baby Boomers will change the Landscape of the Real Estate Market for years to come.

As the baby boomer generation enters their golden years, they are reshaping the landscape of the real estate market according to Robert Scaralia of the Real Estate Institute of Rhode Island. With a desire for new lifestyles and changing needs, baby boomers are looking to sell their homes, presenting both challenges and opportunities for buyers and sellers alike. In this blog, we'll explore the impact of this significant demographic shift on the real estate market and what it means for those looking to buy or sell property.

Baby boomers, born between 1946 and 1964, are now reaching retirement age at a rate of about 10,000 per day in the United States alone. Many are looking to downsize from their family homes as they become empty nesters or seek more manageable properties that require less maintenance. Additionally, a growing number of baby boomers are opting for active adult communities or retirement villages that offer amenities and services tailored to their needs, such as recreational facilities, social activities, and healthcare services.

Impact on Sellers: For baby boomers looking to sell their homes, there are both challenges and opportunities. On one hand, there is increased competition as more sellers enter the market, potentially leading to longer listing times and price adjustments. However, baby boomers who have owned their homes for many years may have substantial equity built up, allowing them to sell at a profit and potentially upgrade to a more desirable property or lifestyle.

Impact on Buyers: For buyers, the influx of baby boomer-owned properties presents a unique opportunity to find homes in established neighborhoods with mature landscaping and amenities. Additionally, the downsizing trend among baby boomers may lead to an increase in the availability of smaller, more affordable homes in desirable areas. However, buyers should be prepared to act quickly and competitively in markets where demand outpaces supply.

Adapting to Market Dynamics: Real estate professionals must adapt their strategies to accommodate the changing needs and preferences of baby boomer sellers and buyers. This may include marketing properties with features and amenities that appeal to baby boomers, such as single-level living, energy-efficient upgrades, and proximity to healthcare services and recreational activities. Additionally, real estate agents can provide guidance and support to baby boomers navigating the process of downsizing or transitioning to a new lifestyle.

The baby boomer generation's transition into retirement is reshaping the real estate market said Scaralia, presenting both challenges and opportunities for buyers and sellers. As baby boomers look to sell their homes for new lifestyles, real estate professionals must adapt to meet their evolving needs and preferences. By understanding the impact of this significant demographic shift, buyers and sellers can navigate the market with confidence and success.

The Real Estate Institute of Rhode Island provides real estate licensing classes and ongoing continuing education for real estate professionals.

www.InstituteRI.com

Should Rhode Island Government Control Rent Increases?

         The Pro's and Con's of RENT Control

Apartment rents in the Providence-Warwick metropolitan area are rising faster than anywhere else in the country, according to a new analysis by rent.com.

The Providence metro median rent rose by 21.55% year over year in December to $2,752, the highest percentage increase among the 50 metro areas analyzed by the Atlanta-based apartment search engine. The Columbus, Ohio metro was second with an 11.56% year-over-year increase to $1,747.

Researchers analyzed rental property prices to identify median rent prices at the national, state and metro levels. The analysis combined inventory and bedroom types into one median that covers all available rental units at the time.

The national median price for an apartment in December was $1,964, 40% lower than the median price in the Providence metro, which includes all Rhode Island counties and Bristol County, Mass.

Source-Providence Business News February 2, 2024

In recent years, the issue of affordable housing has become increasingly prominent in Rhode Island and other parts of the country sparking debates over the role of government in regulating rent increases. Advocates argue that controlling rent hikes is essential for ensuring housing affordability and stability, while critics raise concerns about potential negative impacts on property owners and the housing market as a whole. In this blog post, we will delve into the pros and cons of government intervention in controlling rent increases.

Pros:

1. Affordable Housing: According to Robert Scaralia Education Director at the Real Estate Institute of Rhode Island said one of the primary arguments in favor of government control of rent increases is its potential to maintain affordable housing options for residents, especially in areas where housing costs are soaring. By capping rent increases, governments can help prevent price gouging and ensure that individuals and families have access to stable and reasonably priced housing.

2. Social Equity: Rent control measures can promote social equity by preventing displacement and gentrification of lower-income communities. Without government intervention, rapidly rising rents in desirable neighborhoods can force long-term residents out of their homes, leading to socioeconomic segregation and inequality.

3. Economic Stability: Rent control policies can contribute to economic stability by providing tenants with predictable housing costs. This stability allows individuals and families to budget more effectively, reducing financial stress and potentially stimulating consumer spending in other areas of the economy.

4. Mitigating Homelessness: By stabilizing rental prices, government intervention can help mitigate homelessness by reducing the risk of eviction due to unaffordable rent increases. Stable housing is crucial for individuals and families to maintain employment, access education, and lead healthy lives.

Cons:

1. Market Distortion: Critics argue that government control of rent increases distorts the housing market by artificially suppressing rental prices. This can disincentivize investment in rental properties, leading to a shortage of available housing units and exacerbating affordability issues in the long run.

2. Property Rights: Opponents of rent control measures often highlight concerns about infringement on property owners' rights. Property owners argue that they should have the freedom to set rental prices based on market demand and property maintenance costs without government interference.

3. Maintenance and Investment: Rent control policies may discourage property owners from investing in property maintenance and upgrades. With limited ability to increase rental income, owners may have less incentive to invest in improving the quality of rental units, potentially leading to deteriorating housing conditions over time.

4. Shortage of Rental Units: Rent control measures can contribute to a shortage of available rental units in high-demand areas. Landlords may be less inclined to rent out their properties if they cannot adjust rents to match market conditions, leading to decreased rental housing supply and increased competition for existing units.

The debate over government control of rent increases is complex, with valid arguments on both sides said Scaralia. While rent control measures aim to promote housing affordability and stability, they also raise concerns about market distortion and property rights. Finding a balance between protecting tenants and respecting property owners' rights is essential in crafting effective housing policies that address affordability challenges while maintaining a healthy housing market. Ultimately, a nuanced approach that considers the unique dynamics of each housing market may be necessary to achieve sustainable solutions to the ongoing affordable housing in Rhode Island

For more information about housing and the statistical analysis of Rhode Island cities and towns contact the Real Estate Institute of Rhode Island.

www.InstituteRI.com

Kent County, Rhode Island Real Estate Market Analysis December 2023

Kent County, Rhode Island

Market Metrics Report December 2023

Real Estate Institute of Rhode Island

www.InstituteRI.com

Let's start by examining the "Months Supply of Inventory," which currently stands at 1.52. This metric represents the number of months it would take to sell all the available properties on the market, given the current sales pace. A lower number indicates a seller's market, where demand exceeds supply, leading to potentially higher prices and faster sales.

Now, let's consider the "12-Month Change in Months of Inventory," which shows a significant decrease of -8.98%. This means that compared to the previous year, there has been a substantial reduction in the amount of time it takes to sell available properties.

Moving on to the "Median Days Homes are On the Market," we find that properties spend an average of 18 days before being sold. This metric highlights the swift pace at which homes are being snatched up by eager buyers. For sellers, this means a potential quick sale, while buyers must act swiftly to secure their desired properties.

Let's now turn our attention to the "List to Sold Price Percentage," which stands at an impressive 99.8%. This metric indicates that homes are being sold very close to their initial listing price. Such a high percentage suggests that sellers are experiencing minimal price reductions and are able to secure favorable offers.

Lastly, we come to the "Median Sold Price," which currently sits at $383,750. This figure represents the middle point of all home sale prices in the market. This median value gives us a general idea of the market's overall price range.

The short "Median Days Homes are On the Market" further reinforces the notion of a fast-paced market, where buyers must act promptly to secure their dream homes. The high "List to Sold Price Percentage" signifies that sellers are achieving prices close to their initial listing price, showcasing their bargaining power in negotiations.

Finally, the "Median Sold Price" of $383,750 gives us an idea of the price range within this market. It is important for both buyers and sellers to analyze these metrics to align their expectations and make informed decisions.

For more information about the Rhode Island real estate market contact the Real Estate Institute of Rhode Island.

980 Reservoir Ave

Cranston, RI 02910

401-943-8500

www.InstituteRI.com

Rhode Island Real Estate Market Update

Rhode Island Real Estate Market December 2023

The year ended with much optimism for a strong 2024. The median price of a single family home in Rhode Island was $427,000 and inventory was at one and a half months.  

Definitions explained.

The medium price of a home refers to the middle value in a list of home prices arranged in ascending or descending order. Unlike the average, which is calculated by summing up all the prices and dividing by the number of homes, the median is the middle point that separates the higher half from the lower half of the data set. In the context of real estate, the median home price provides a more representative measure than the average, as it is not influenced by extreme values that can skew the overall perception of the housing market. It offers a more accurate reflection of the typical cost of homes in a given area, making it a useful metric for assessing the affordability and overall market conditions.

Months of inventory, in real estate terms, refers to the number of months it would take to sell the current inventory of homes on the market, given the current sales pace. It is a key metric used to assess the balance between supply and demand in the housing market. The calculation is typically done by dividing the number of active listings by the average monthly number of closed sales. A higher number of months of inventory suggests a buyer's market, indicating more supply than demand, while a lower number suggests a seller's market, with higher demand than supply.

The Real Estate Institute of Rhode Island is a real estate school offering licensing classes, continuing education and general real estate studies.

www.InstituteRI.com

Rhode Island Gov. 100 Million for Housing 2024

100 Million bond for Rhode Island Housing

Rhode Island- In the State of the State address Rhode Island Gov. Dan McKee pledged 100 million for a housing bond as requested by the Rhode Island Housing Secretary Stefan Pryor, this would be the largest in state history. Some say it's too much, others are saying it's not enough.
“These dollars will create more inventory and help put young people on a path to homeownership in our state,” McKee said. “ We know that homeownership is one of the top ways to build generational wealth.”

According to Robert Scaralia Director of Education at the Real Estate Institute of Rhode Island in a joint statement with REMAX 1st Choice said, this is good news for Rhode Island because the state is suffering from both a housing shortage and a affordability challenge.  One of the key areas to increase affordable housing in Rhode Island is through changes in local land use controls, mainly with changing the cities and towns requirements for minimum lot sizes. Too often the minimum lot square footage requirement is well above 8,000 square feet, when an 8000 square foot lot affords every homeowner a generous front and back yard.

Smaller residential lot sizes are a crucial solution to address the pressing issues of housing inventory and affordability. This not only maximizes land utilization but also facilitates the development of more affordable housing options. With a focus on efficiency and thoughtful planning, this approach empowers communities to accommodate more residents without compromising quality. In essence, embracing smaller residential lot sizes is a strategic move towards a more inclusive and accessible housing market, fostering sustainable growth and improved affordability for all who call or would like to call Rhode Island their home.

Real Estate Institute of Rhode Island