Providence, Rhode Island has seen strong home prices in the recent years as well as outstanding appreciation rates while enjoying an improving economy. Appreciation rates within the Providence area continue to track above the national average, and the equity gains, while at the national average, have recovered across most communities from the Great Recession. Real estate price increases are stable and for the most part sustainable. We continue to see a multitude of new buyers as the economy grows along with continued low-interest rates keeping affordable mortgage payments for all types of buyers looking for their next home.
Median Home Prices on the Rise
The median price for a home in Providence, Rhode Island ranges between $114,001 and $228,000, depending on the neighborhood.
The median price represents the numbers in the “middle.” Meaning that half of the homes have sold in Providence are above the median price of $228,000 and the other half of those homes that were sold were below this value. We are looking at the midway point of all the homes that have been sold. This information is important when buying or selling a home because it helps show the current market trends. If the midway price is declining it demonstrates a weakening market and homes might take longer to sell as buyers will be waiting for the bottom. However, if that price is rising, then the market is up and homes will sell more quickly as buyers try to jump in before the market peaks.
According to the July report from the Rhode Island Association of Realtors, the single-family housing market has seen a year over year gain in median home prices of 7.5% in the second quarter. Rhode Island had also seen a sudden increase in home sales in recent months despite the limited inventory.
An Improved Local Economy
The growing housing market is also leading to growth in different segments of the local economy tied to housing. This growth is leading to improved sales within the home improvement segments, including furniture sales, hardware sales, paint and construction jobs, as well as plumbing fixtures and other home improvement projects.
With the growing housing industry, The Fed continues to keep interest rates low which make the decision to buy even easier than before. If you are looking for a 30-year mortgage, then you may find rates lower than four percent. The limited housing supply coupled with lower interest rates, however, also leads to multiple offers on homes, which favors the sellers as more and more buyers compete for fewer houses for sale.
With the diminishing inventory of available homes, the market still saw record-breaking numbers within the first quarter which is a rise of approximately two percent from the previous year. The sales in Providence, Rhode Island for 2017 totaled 61 not including East and North Providence; this is more than a 5% increase in this area alone over the previous year.
Follow Your Dreams
If you are in the Providence, Rhode Island area and have been struggling with the decision to buy, it is definitely the time to invest your money and take advantage of the growing housing market in this area. It is also a great time to benefit from the lower interest rates and reduced mortgage payments. Keep in mind, the rise in home sales over recent years has led to a decrease in available inventory so waiting too long may mean you forfeit the opportunity to purchase the home of your dreams at an affordable price.