RI Real Estate: Median Price $405K, Little Inventory and Average Mortgage Payment Up 53% in a Year


Thursday, 09/22/2022

View larger +

Kim Marion from Mott & Chace Sotheby’s International on GoLocal LIVE

Homeownership is shifting from the American dream to the golden ticket – wealth for some but not all.

The numbers are stunning. For homebuyers, especially first-time buyers, the obstacles are piling up.

Rhode Island’s top broker Kim Marion discussed the impact of rising interest rates on the cost of monthly mortgage payments in an interview on GoLocal LIVE on Wednesday.

GET THE LATEST NEWS HERE – SIGN UP FOR THE FREE GLOCAL DAILY EBLAST

“This time last year, the average mortgage was around $1,265. This year’s average mortgage is $1,944. That’s an increase of 53%. It’s like you added a luxury vehicle to your payments, but you didn’t get the car. It’s a $674 difference every month — think about it,” said Marion of Mott & Chace Sotheby’s International.

Marion’s data is based on mortgage rates that have risen from less than 3% last year for a 30-year lock-in to more than 6% now.

This does not take into account Wednesday’s announcement by the US Federal Reserve that it would make another 75 basis point hike. This is likely to drive up borrowing costs even further.

Real estate prices are falling in large parts of the country. But there is no homebuyer relief in Rhode Island. The median price of a single-family home remains $405,000, according to published data

READ:  In A Downturn, Real Estate Agents Should Market With Future In Mind

Small inventory

“Sales activity continued to decline for the seventh straight month, down 11.4% from 12 months. The number of days a home stayed on the market remained flat at 29 days, as did 1.8-month inventories — which remained well below that of a balanced market indicated by a six-month supply of homes for sale will,” the RI Association of Realtors said on Wednesday.

“Although inventory is increasing slightly, options are still extremely sparse. That and the rise in mortgage rates are reducing the number of buyers in the market. However, there may be opportunities, even with higher interest rates, to secure stable home ownership payments through home ownership and thereby gain the opportunity to build wealth through equity. They should also be aware that if they wait for prices to drop significantly, it’s not likely to happen anytime soon given the housing shortage that still exists,” said Agueda Del Borgo, president of the Rhode Island Association of Realtors.

Although condos sold in August saw a 15.6 percent increase in median price to $313,338 compared to 12 months earlier, they proved a much more affordable entry point for those struggling to own a home. The days a condo stayed on the market fell to 27 from 32 in August 2021, and sales were down 17.7%.

At $424,500, the median price for multifamily homes continued to be the highest of the three sectors, largely due to demand from investors looking to take advantage of rising rents. Days on the market fell to 25 from 29 in August 2021, down 13.8%, and closed sales fell 10.8%.

READ:  Dodge County real estate transfrs

“Over the past five years, the median cost for multi-family homes has increased by 93%, compared to 56% for single-family homes and 42% for condos. They were clearly viewed as a good investment, and as long as rents continue to rise and exceed operating costs, they will remain so,” Del Borgo said.

  • Mixed Indicators: Where the Rhode Island Housing Market is Heading
  • Allen James Shers, real estate agent, consultant and appraiser, dies aged 72
  • Large commercial real estate deal in New England affects the lifespan and maintenance of New England tenants
  • Building wealth through real estate: Mott & Chace’s Masterson on market trends
  • Retired estate agent Michael D. Jones of Coventry dies aged 55
  • Residential real estate surpasses record $1 billion in home sales in 10 months
  • Narragansett real estate agent and developer Anthony L. Santilli dies aged 86
  • Real Estate Mega Deal: Residential Properties acquires Libby Kirwin Real Estate
  • RI Real Estate continues to boom amid growing concerns about a global real estate bubble
  • Newport’s top real estate agent discusses her Bravo reality show and the dynamics of the RI real estate market
  • Still Groundhog Day in RI’s hot real estate market: Mott & Chace’s Rutley on inventory and pricing
  • These real estate and oil tycoons have been avoiding paying taxes for years – ProPublica
  • Real estate agent John A. Paliotta dies aged 73
  • Rutley on RI’s lagging real estate inventory and are we headed for a correction?
  • Mott & Chace’s Blackstone team launches scholarship and mentoring program for black real estate agents
  • New RI real estate data: Hard news for buyers – prices are rising, interest rates are rising and inventories are falling
  • RI Real Estate: Record Prices, Plunging Speed, Millennial Search and Skyrocketing Rents
  • Federal Trade Commission hits real estate company Opendoor with $62 million fine
  • Report: RI homes gobbled up by out-of-staters at record pace, nearly 50% of homes over $1 million
  • This could be the main reason RI real estate prices continue to soar
  • Biggest Providence Real Estate Sale in 2 Years – East Side St. Florian Mansion Sells for $3.05M
  • The Arcade – Providence’s most unique real estate buying experience
  • Out-of-state homebuyers – 21 who made a difference in 2021
  • Demolition on Gano – Is This the East Side’s Next Big Residential Real Estate Project?
  • More than 130 price drops in the last 7 days mean big changes in RI’s real estate market
READ:  Real estate rundown week ending September 30, 2022

Do you like this post? Share it with others.





Source link