Senior Realtor Marion Discusses Lack of Inventory, Rising Interest Rates and Demand
Thursday, April 21, 2022
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Kim Marion of Mott & Chace Sotheby’s International Realty says this is the most complicated time in the real estate market, especially for buyers.
Usually when interest rates rise the market starts to cool down, but not in 2022.
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“If you look at a year ago, a year and a half ago, when rates were in the 3% range, that’s a significant difference,” Marion said of interest rates that have now exceeded 5%.
“So each point is about $100,000 and…that’s a big hit for that buying power,” she added.
On Tuesday, the Rhode Island Association of Realtors announced the latest data for March, and the median price for a single-family home had reached $385,000.
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Lack of inventory and price
“There are about a million people in Rhode Island, and there are 588 homes on the market,” Marion said. “Right now, single-family homes and about half of them are over $500,000. So for a small family right now, they’re probably starting to feel uncomfortable with rising interest rates. interest and prices for which it is difficult to buy a house [$385,000].”
Marion urged buyers to be flexible and ready to move quickly on properties.
“Well, buyers have to work with a real estate agent so that the minute a new property comes along, they can kind of jump on it. Another thing is that discount properties are rare – there are properties who need a little love and a lot of people need something ready to move in, but if you can put in a little work you’ll be in better shape,” Marion said.