Fourth Quarter 2022 Rhode Island Real Estate Market Report

The real estate market in Rhode Island has been constantly evolving and the fourth quarter of 2022 was no exception. In this blog, we will look at how the real estate market was trending as it closed out the year. We will also look at market data from the previous three quarters to paint a larger picture of what the market did last year. Whether you're a buyer, seller, or investor, this report will provide valuable insights and help you make informed decisions about your real estate needs.

The first thing we will look at is how long properties stayed on the market in the fourth quarter compared to other quarters. Based on the graph, we can see that homes were flying off the market in the first and second quarters, as buyer competition for the limited houses available for sale peaked as we entered the summer.

Once July came around, mortgage interest rates started to spike. As rates continued climbing into October, the average time it took for a property to sell increased too. In fact, by the fourth quarter, the average days on market skyrocketed from 32 days in the previous quarter to 39 days at the end of the year.

You may be asking why this information matters. Well, if you're a home seller with a tight timeline, you might need to act fast before the market slows down even further. Whether you're relocating for a new job or embarking on another important life change, knowing this information could help you make more informed decisions about when and how to sell your home.

Let's take a quick look at the average sale price of real estate in Rhode Island during 2022. The graph shows that the market started off the year relatively flat, with prices remaining stagnant. However, activity began to pick up in the second quarter as prices started to increase. We saw some fluctuation in the third quarter as the market reacted to the changes in interest rates before it picked a direction to close out the year.

We can see that the real estate market shifted into a downward direction as prices dropped for three consecutive months. If we combine this information with the fact that properties were taking longer to sell, the data starts to paint a very specific picture.

This data doesn't necessarily mean the market is going to continue dropping as 2023 progresses. This could be a seasonal trend where real estate markets slow down in winter months and then pick up steam in the spring months.

So buckle up, people! The real estate market could be approaching a turning point. As more information comes out over the next two quarters, we'll gain a clearer picture of whether the downward trend we've been seeing is just a temporary blip or here to stay for a while.

If prices continue to drop, we could see a surge in homeowners eager to sell, while buyers may bide their time, waiting for the perfect opportunity to strike. With so much up in the air, the next few months could make or break the 2023 real estate market. It's a nail-biting time for anyone with an interest in buying or selling a home, and only time will tell what the future holds in store for everyone involved.

If you are interested in seeing what the real estate market is doing in your neighborhood, contact me for a free market analysis.