In 2018 we experienced a:
- 6% decline in the number of homes SOLD from 11,308 in 2017 to 10,640 in 2018.
- 6% increase in the average sales price, from $325, 590 in 2017 to $346,087 in 2018.
- 6% decrease in the number of Expired homes, from 965 in 2017 to 909 in 2018.
Projected For 2019
RI lingers behind the NY/Boston markets. Although prices are still high, in Manhattan we’ve seen a decline in the number of SOLD as well as in Boston. Having such a high price per square ft in Boston is obviously helping our RI market to hold prices. However, all signs and stats are showing a slow down in sales and an increase in inventory. Currently the number of available homes for sale in RI is higher than in January of 2018. Another sign of a weakening market is when DOM (days on market) increase and how long it takes to sell a home (increase in DOM on all major East Coast cities).
Be Careful When Pricing Your Home
We are now seeing a slow flip from Seller’s market to Buyer’s market, expected to be completed in the second half of 2019.
In 2019, it will be tougher to price your property. In a decline market, when a lot of homes are available and inventory is increasing, it is more difficult to figure out the real value of a home. I don’t think the market will show any dramatic movements or dramatic decline, but a more subtle increase in inventory which naturally results in more options for buyers. More options will automatically slow down decision making processes and will result in an increase of DOM. Motivated sellers will start dropping prices. The result will be lower sale prices.
Sellers – don’t expect bidding wars and over asking offers like we experienced in 2018. This year, especially the second half, will get slower.
There are many factors that contribute to real estate trends and as much as we like to think we can predict what will happen, without a crystal ball, it’s all extrapolation from various experts and sources.
Regardless of what’s in store, whatever your plans – buying your first home, selling your starter home and moving up, and all those plan in between, in order to put yourself in THE BEST position, always seek out the expertise of an experienced full-time Realtor. Home purchases and sales are complex and unpredictable. Having someone by your side who handles these major transactions on a daily basis, is priceless.
I wish you all the best in 2019 and if you are looking to make a move, I’m available whenever you need me!
Happy New Year from Jeannine Harrington Homes at The Brown Group Realty!