Скачать или смотреть Three Reasons to Buy a Home in Rhode Island in Spring of 2023

Three Reasons why Homes are "Affordable" in Rhode Island in the Spring of 2023

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Affordability in the housing market is based on three things: mortgage rates, home prices and wages earned by potential buyers.

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First, home prices are stabilizing and the value increase has normalised. We are continuing to see a steady increase in home prices, but not that double-digit hurly-burly increases last year,.

Certain areas like Newport, Easton's Point in Middletown, Riverside, Narragansett, parts of Warwick, and other popular vacation spots are still providing examples of multiple offers driving home prices up, but these are the exception rather than the rule. a

Mortgage rates are more affordable at their current 6.4% range. Freddie Mac reports that as of March 23, 2023 mortgage rates came down from the high of 7.1% and are now averaging 6.4% nationally.

The third leg of what makes a home affordable is wages. And right now now the job market is doing very, very well. There are not enough people to fill all the jobs available, so the working people are receiving a much more competitive wage than we have seen in the near past. Not speaking to whether it's a sufficient wage or a living wage; I'm just saying it's slightly more.
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So mortgage rates are lower; they're off their high of 7.1, and they're riding down around 6.4%. Home prices are steadily increasing but not increasing at a rapid pace for the average home. And wages are pretty good; most people who want a job are employed at a fairly good wage, so people can afford to buy.

With all the headlines and videos and differing options, it's tempting to kind of sit back. I'm recording at the time the Silicon Valley bank has folded, there's another bank out there, and a lot of people are sitting back and waiting to see, "Oh, the market's going to crash, and home prices are going to come down."

Home Prices are based on supply and demand, just like anything, just like bananas and toilet paper and Apple stock. If there is not enough supply, then there are 3, 4, 6, and 8 buyers for every single home that goes on the market. And when there are multiple buyers, we see competition in the marketplace.
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Now, it's not like it was even a year ago. This time last year, we saw significant instances of multiple buyers driving prices well over the asking price. We are still seeing that but in smaller numbers of cases. It is not likely, and it's not projected that home prices will go backward.

We are seeing a slowing in the increase in value, but even that is projected to turn around by the end of next year.

So, if you're looking to buy a house, now is the time. It is always the time to buy real estate. Even if you bought a house and the market goes down, it will eventually come back up. And right now, we're not predicting the market to go back down. So buy the house; if the interest rates go down significantly, you can refinance, which will help you increase your equity faster.
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I'm Sandi Warner with Warner Realty Group. If you have not yet subscribed, please hit the subscribe button and smash that like if you think this is good content and hit the bell so you get notified when we put out a new video. Hope you are enjoying house hunting and we look forward to talking to you soon.