Stephen Smith Real Estate

01/10/2025

Realtors Report Signs of Increasing Activity in R.I. Housing Market

The Rhode Island Association of Realtors released November sales statistics today showing a 3.5% rise in year-over-year sales activity and a 17.6% increase in pending sales expected to close in the coming weeks. This year, monthly sales have risen year-over-year for six months, in contrast to falling every month from January 2022 to January of this year. Inventory has increased from the prior year each month since April, which has helped spark sales.

Despite more homes now available for sale, the level of supply remains low due to the increase in sales. With no new listings hitting the market, the current supply of single-family homes would be depleted in 1.9 months at the current pace of sales, compared to the six-month supply typically representative of a balanced market. As a result, the median price rose 11.4% from November 2023 to $480,000.

“More inventory and increased sales are trends we desperately need on our way to a more balanced market. However, seeing the median price climbing by double-digits in all but two months this year is still troublesome. Affordability will not come back into line in Rhode Island until we start building more homes and creating more jobs with growth opportunities. Those should be key issues of concern for all Rhode Islanders as we head into the 2025 legislative session,” said Whitten.

In other areas of the housing market, condominium sales also showed upward movement. Closed activity rose by .9%, the number of listings on the market rose by 12%, and the median price rose to $390,000, a 9.1% gain from the prior year. Only pending sales dropped for the fourth consecutive month, foretelling tempered sales in the weeks ahead.

A slowdown in sales activity is also evident in the multifamily home market. Last month, sales decreased by 13.8% and pending sales dropped by 2.5% from November 2023. The median price of those sales rose to $563,500 compared to $492,000 last year.

“As we move into the New Year, we expect to see more activity in the housing market. Since the beginning of 2022, the 'lock-in effect’ has most homeowners hanging onto their low interest rates causing stalled sales and lessened inventory. Therefore, life changes that typically precipitate a move like divorce, babies and job relocation have been put on hold. But we anticipate with the equity gains homeowners have made along with many getting used to the 'new normal' in mortgage rates, that inventory will continue to grow as the new year progresses.” said Whitten.

PLEASE LET ME KNOW IF YOU OR ANYONE YOU KNOW IS THINKING OF SELLING OR BUYING REAL ESTATE THIS YEAR!

12/12/2024

JUST LISTED FOR SALE IN NORTH KINGSTOWN
Side by Side Duplex w/Potential 3rd Unit
12 Yorktown Rd, North Kingstown
$470,000.00
Maintenance free exterior (newer roof, vinyl siding and replacement windows) side by side duplex two family w/possible 3rd unit set on an oversized 9,583 sq ft lot in desirable North Kingstown. Potential for third unit in very expansive 814 sq ft (37 x 22) two garage, with bathroom and electricity sitting directly behind the house. This recently insulated house is serviced by public water and a septic system which has been pumped annually. Each unit has separate two zone gas baseboard heating systems, separate gas hot water tanks, separate circuit breaker electrical service panels, separate basements divided by a concrete block wall and separate driveways on either side of the house. The first floors of each of these side by side units, left and right, have an open floor plan consisting of living room, and kitchen/dining area with access to the rear 36 foot deck for use by both units. Both units offer solid oak floors on both first and second floors. Both second floors, left and right, offer two spacious bedrooms and a bathroom with tub and shower.
BOTH HOUSE AND GARAGES COULD USE SOME COSMETICS.

Click on link below for full property details

https://portal.onehome.com/en-US/share/1082557c29137

09/20/2024

RI's SINGLE AND MULTIFAMILY HOMES SALES INCREASE IN BOTH PRICE AND ACTIVITY

The median price of single-family homes sold last month in Rhode Island rose 9% year-over-year to $490,563 according to a report released today by the Rhode Island Association of Realtors. Sales activity also increased from August 2023, rising 10.7%.

The months’ supply of homes on the market at August’s rate of sales grew slightly to 2.3 months. While still far below the five- to six-month supply of a balanced market, Rhode Island’s supply of single-family homes for sale increased from the 1.8-month supply of August 2023.

At $549,000, the median price of multifamily homes saw an annual increase of 15.6%. Though sales saw a 3.1% gain since August 2023, the rate of increase in sales activity in the multifamily home market has slowed considerably in recent months.

“R.I. saw slight improvement in housing supply in August, but a significant housing shortage remains. The recent reduction of 50 basis points in the funds rate by the Federal Reserve will give builders access to more affordable credit terms and the housing legislation passed this year should eliminate some of the roadblocks that hindered development. Building more homes is the most significant factor in getting our housing market back in balance,” said Sally Hersey, president of the Rhode Island Association of Realtors.

In stark contrast to the trends of the single-family and multifamily home sectors, the median price of condominium sales in August fell 14.2% to $330,000 and closed sales slowed by 7.8% from the prior August. Those trends have wavered each month however. Just one month prior, both the median price and closing activity of condominiums were up significantly from the previous year.

“Overall, we have encouraging signs to look forward to next year. Some homeowners who are reluctant to give up their current low mortgage rates may be more willing to sell as rates come down and buyers should see better affordability, at least in terms of financing. Inadequate supply will remain the critical factor in home prices though. It will take some time, but we are hopeful that we now have some of the pieces of the puzzle to work through that,” said Hersey.

PLEASE LET ME KNOW IF YOU, OR ANYONE YOU KNOW, HAS A REAL ESTATE NEED THAT I CAN HELP WITH.
MANY THANKS,

09/19/2024

Central bank’s rate-setting committee says it has ‘greater confidence’ inflation is moving towards 2 percent target.

09/17/2024

Pro stagers share their tricks for giving your home a quick glow-up.

09/03/2024

Very Wise Advice...

Denzel Washington (born December 28, 1954, Mount Vernon, New York, U.S.) is an American actor celebrated for his engaging and powerful performances. Througho...

08/27/2024

OUT-OF-STATE HOME BUYERS FLOCK TO RI IN SECOND QUARTER

RI Realtors recently released second-quarter home sales statistics which show a marked increase in buyers from other states who purchased in the Ocean State. Out-of-state buyers of single-family homes, multifamily homes and condominiums during April through June increased 69 percent from the same period last year. Buyers from Massachusetts, Connecticut and New York comprised the bulk of out-of-state buyers both years. Buyers from California and Florida rounded out the top five.

Buyers from other states accounted for 26 percent of the total sales in the second quarter of this year, up from 21 percent in 2020. Their presence was even more pronounced in the luxury market, comprised of properties sold for one million dollars or more. Forty-seven percent of those sales were credited to buyers from outside of Rhode Island.

The number of total luxury sales – those which involved both out-of-state and in-state buyers – increased significantly from the previous year, rising from 49 in the second quarter of last year to 202 this year, a 312 percent hike. Coastal towns like Little Compton, Charlestown, Jamestown and Newport, which cater to year-round as well as summer residents, saw large increases in both median price and closed transactions.

“The secret is out. Rhode Island has been discovered in the past year by those looking for a haven away from the city. Our housing market has been an economic boon throughout most of the pandemic but the increased demand for our housing stock is taking a toll. Rhode Islanders are having a hard time competing for homes with other buyers, including those from out-of-state, who often come here with cash in hand,” said Leann D’Ettore, president of the Rhode Island Association of Realtors.

Overall, the number of single-family home sales at all price levels rose 17 percent year-over-year and the median sales price rose 23 percent to $369,450. Multifamily home sales nearly doubled, rising 94 percent and their median sales price rose 20 percent to $355,000. A good alternative to single-family homes in a tight market, condominium sales increased 82 percent and the median sales price of $290,000 represented an 18 percent increase from the second quarter of 2020.

PLEASE LET ME KNOW IF YOU, OR ANYONE YOU KNOW, HAS A REAL ESTATE NEED THAT I CAN HELP WITH.

MANY THANKS,

08/27/2024

Here is the most recent July 2024 RI Real Estate Market update. This is designed to give you an idea what the real estate market is doing and what direction it is moving in since last year at this time. Please see the infographic and market statistics attachments as well.

You can compare data from the last three months of this past year with the last three months of the previous two years in single family, multi family and condo sales along with a breakdown for every city and town in the state

R.I.’s HOUSING MARKET CONTINUES TO BREAK RECORDS

The Rhode Island Association of Realtors recently released home sales data that showed the median price of single-family homes once again broke records in July, topping out at $495,000, a 12.5% gain from 12 months earlier. The number of listings on the market also rose from last year, rising 16.2%, helping to spark a 21.2% increase in sales activity. Pending sales, a leading indicator of future sales activity, stabilized after 30 consecutive months of decline.
“We are beginning to see an increase in the number of homes listed for sale. And fortunately, anticipated rate cuts this fall should entice more homeowners who were previously unwilling to let go of their current low mortgage rates, to consider making a move. While this is good news, more new development remains the key to repairing our housing crisis,” said Sally Hersey, President of the Rhode Island Association of Realtors.
While inventory grew, the supply and demand imbalance remains more significant in Rhode Island than in most other areas of the country. July’s 2.2-month supply of homes for sale pales in comparison to the 4.1-month nationwide supply reported by the National Association of Realtors in June. The lack of single-family homes for sale resulted in listings going under contract in just 18 days last month, the shortest window on record since 1988, when record-keeping began.
Due to the tight supply of starter homes in the single-family home sector, sales of condominiums increased 44.6% over last year. At $395,000, the median price of those sales came in $100,000 less than that of single-family homes. A slight rise in pending sales indicates that closing activity should remain elevated in the weeks ahead.
In contrast, the median price of multifamily homes remained the highest of all three sectors at $550,000. Sales, which have not fallen since January, continued their ascent rising 10.9% more than July 2023. Barraged by investors, this sector of the market has boomed during the housing crisis, sparked by high rental demand and corresponding income. Incomplete sales expected to close this month, however, fell 11%, an indication that sales will likely slow in the weeks ahead.
“Overall, there are promising signs for our housing market. More inventory and lower interest rates should help to get the market moving. We’re hopeful that 2024’s housing market will be ending on an upswing,” said Hersey.

PLEASE LET ME KNOW IF YOU OR ANYONE YOU KNOW IS THINKING ABOUT SELLING OR BUYING REAL ESTATE.

MANY THANKS,

08/26/2024

Here is the most recent JUNE 2024 RI Real Estate Market update. This is designed to give you an idea what the real estate market is doing and what direction it is moving in since last year at this time. Please see the infographic and market statistics attachments as well.

You can compare data from the last three months of this past year with the last three months of the previous two years in single family, multi family and condo sales along with a breakdown for every city and town in the state.

Despite a 32% increase in the number of single-family homes on the market since June of last year, the median price of Rhode Island homes sold last month continued to rise, hitting a new high of $494,000. The figure represented an 11.6% increase in median price from 12 months earlier, the Rhode Island Association of Realtors reported today.

Realtor data also showed a 19.1% decrease in sales from year-to-year. With just 675 single-family homes sold statewide last month, June experienced the lowest number of sales on record for the end of the spring selling season since the Rhode Island Association began record-keeping in 1998.

The increase in the number of listings on the market, coupled with the slow sales, caused the supply of homes to increase to 2.2 months before all listed properties would have sold if no new listings went on the market. June was the first time since October 2020 that the supply of homes rose to more than two months. A five- to six-month supply represents a market balanced between supply and demand.

On average, single-family homes for sale went under contract in just 23 days in June, which tied with May 2022 as the month with the shortest days on market on record.

“We still have a long way to go to correct our housing crisis but the good news is, over the last few months we have started to see a shift toward a more balanced market. We’re hopeful that we will continue to see a slow but steady path to getting there,” said Sally Hersey, President of the Rhode Island Association of Realtors.

The number of sales under contract but not closed by the end of June also fell slightly, down 2.1 percent year-over-year. A forward-looking indicator of home sales based on contract signings, June’s pending sales indicate that sales may be starting to gain stability.

Condominiums were a much more affordable option for prospective home buyers in June with a median price of just $352,500. Sales fell 13.4 percent from June 2023 but pending sales increased by 3.5%. The number of condominiums on the Rhode Island market rose 28.6% to 333.

Multifamily homes continued to be a hot commodity last month, staying on the market only 21 days before going under contract, a 16.7% decline from June 2023. The sector was the only housing type to experience increased year-over-year sales in June with a 17.9% increase. Pending sales however, dropped 4.2% foretelling a slight decline in closing activity in the weeks ahead.

PLEASE LET MW KNOW IF YOU OR ANYONE YOU KNOW IS THINKING ABOUT SELLING OR BUYING REAL ESTATE IN THE NEXT TWELVE MONTHS.

MANY THANKS

04/01/2024

Will mortgage rates fall this spring?

Most experts expect mortgage rates to fall at the end of spring at the earliest, with more drops later in the year.

03/31/2024

Debunks the Myths of the NAR Settlement

Premier Sotheby’s International Realty’s president and CEO, Budge Huskey, shares his expertise in the ongoing NAR settlement confusion....

03/28/2024

Is massive change coming to the real estate industry? It’s unlikely. Will sellers drop their listing price because they’re no longer responsible for paying the buyer’s side of the commission? Almost certainly not. Will it be cheaper for buyers to purchase a home? We doubt that, and it might ev...