It’s the question posed to this RI Realtor almost daily and one I love to address.
>>All signs seem to indicate that the market WILL stay hot yet the rate of price escalation will assuage a bit. ( audible sigh of relief from buyers everywhere!)
>>Prices continue to trend upward but at a slower rate. While October and September gains decreased from their previous months, the 19.1% increase in October was the 4th highest in RI on record in the last 34 years.
>>The reasons behind the intensity of demand in the housing market are not going away. Millennials ( our largest buying demographic) hit their third decade which is the prime time for home-buying and trading up.
>>Remote and hybrid work options will continue to fuel the demand and with the emergence of Omicron comes the desire for larger spaces, more private homes, and even second homes.
>>Simply put homebuyers aren’t going anywhere and the housing supply is simply too depleted to “catch “ up to the ever-increasing demand.
>> Interest rates will rise but it’s all relative. The rates may hover around 3.75 % by the end of the year but that’s still incredibly low, allowing significant purchasing power for buyers. Factor in the rate of appreciation and home-buying will continue to be a very fiscally advantageous entity.
So buckle up for another competitive and robust market in RI real estate. Take comfort however in knowing we may have transitioned from left lane driving to a more moderate middle lane. Hopefully while using our blinkers!