2017 was a great year for real estate in RI, thanks to increasing property values and very low interest rates. In June, for example, RI saw 1,236 single-family home sales at a median sale price of $275,000. It’s a jump from June of 2016’s 1,122 home sales with a median price of $245,000.
Despite the probability of interest rate increases and tax codes in 2018, it’s likely that the market should be able to to sustain itself. Higher interest rates always result in higher end prices for buyers who finance, the motivation to secure a property now instead of delaying will cause an uptick in the number of early Spring sales. It’s expected that the high demand and low interest rates will further improve the real estate market in RI in 2018.
The median home price for new listings increased 9.8%, while the supply of inventory decreased from 5.9 months to 3 months when compared to the same time period last year. Additionally, the average days on market decreased 9% in January 2018 when compared to last year. The lack of competition in the marketplace is hiking prices so sellers are realizing more profit. And, when buying their next home, those same sellers have been able to take advantage of low interest rates that are boosting affordability.
Millennials are also a big part of the real estate market. According to a National Association of Realtor’s 2017 study, Millennials were the largest group of home buyers (35 percent) for the fourth year in a row.
“We’re heading into the spring market full steam ahead. It appears that it is taking shape a bit earlier this year as consumers head out early to try to get ahead of the rush of buyers who will be competing for spring inventory,” said Joe Luca, 2018 President of the Rhode Island Association of Realtors.
However, as a side note, beware of solar panel installation in 2018.
The U.S. Department of Energy‘s Property Assessed Clean Energy program, or PACE, grants loans to homeowners for solar panels. With the solar panel loan comes a lien, which is placed on the property until the loan is paid off in full. Loan periods are up to twenty years, and the money is paid back through a homeowner’s property tax bill.
But, now Trump’s Housing and Urban Development will no longer guarantee FHA mortgages for homes with PACE liens. So, if you’re thinking about selling your house and you haven’t paid off your solar panels, you might want to think again.
Statistics credits: RILiving press releases