It’s one of the first questions a home buyer has. Is there an optimal time to purchase a property? If you’re considering buying a home in the Ocean State, read on to find out more about the best time to buy a house in Rhode Island.
Buying a house is a stressful and emotional process. You'll likely have to spend weeks touring properties, fill out hundreds of forms, and invest a large chunk of your savings to secure the right house.
One way to make buying a house easier is starting the process at the right time. In Rhode Island, housing inventory, mortgage rates, and market trends vary from month to month.
For example, this year listing prices for homes in Rhode Island were lowest in January. On average, homes were $95,673 less expensive. While in July — the month with the highest prices — the listing prices were $54,951 more than the annual average.
In truth, the best time to buy a house really depends on your priorities and situation. Read on to find out which time of year will give you the most options and the biggest savings when buying a house in Rhode Island.
Best Month For
13.8% lower than average
22.9% more homes to choose from
2.92% interest for 30-year mortgage
Realtor.com data (October 2020)
Bankrate data (December 2020)
If you're interested in buying a home, the first step in the home buying journey is getting preapproved by a licensed lender. Even if you’re already pre-approved, shopping around for lower rates can pay dividends over the life of the loan.
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Best Time of Year to Buy in Rhode Island
When it comes to Rhode Island, the best time to buy during the year is about the same as for other New England states. January home sales usually lag behind other months of the year. That’s when buyers can expect to make the best deals due to a smaller buyer pool.
As for this year, it seems that Rhode Island is turning into a buyer’s market after years of demand outstripping supply. Rhode Island Monthly reports that state’s Association of Realtors trend analysis shows that “median sales price, which climbed to $270,000 in December of 2018, has now returned to a comfortable $250,000.”
If you’re looking to buy in Rhode Island the best time of year to buy may be now. Buyers have much more leverage than they’ve had for years.
The Best Places to Buy a Home in Rhode Island
This picturesque town is located in Washington County and with a population of less than 1,200, people it is ideal for people who wants to live in a small, tight knit community. The town attracts retirees and young professionals with families due to its highly rated public school system.
Blackstone is one of the best neighborhoods in Providence, Rhode Island. It offers residents a small town feel while still living in a city. The community has many bars, restaurants, coffee shops, and parks. It’s attractive for young professionals who want to easily travel to nearby urban centers like Boston or New York.
This is a suburb of Providence. It attracts many young families due to its highly regarded public school districts. The median home values in the city are also relatively affordable for young professionals at about $228,000.
This tiny, quaint rural town is attractive for people who like to explore, bike, and hike. It’s a town for people who love nature, but there are also plenty of local restaurants and shops.
This historic town is located on beautiful Aquidneck Island. It’s tucked away but is also close to Newport, so you won’t be far from shopping and restaurants. More and more residents are choosing this town because of its proximity to Newport and the fact that its property values are more affordable.
Four Ways to Get a Great Deal On a Home in Rhode Island
1. Find a Great Rhode Island Real Estate Agent
A trusted real estate agent will be able to help you buy a home at the best possible price no matter what time of year you enter the market. While summer may be more competitive for homebuyers, there is also greater demand. A professional real estate agent will understand the nuances of the local market and will be able to negotiate effectively on your behalf.
They will help take the stress out of the home buying process. After all, you shouldn’t make one of the most important financial decisions of your life alone.
A trusted real estate agent or broker will guide you through the entire process. They will search out, evaluate, and negotiate for a property on your behalf. They will also work with you to determine the criteria of the home you are looking for.
This may include such things as your price limit, the number of bedrooms in the home, and the style of home. The agent will schedule appointments for homes that meet your particular needs and parameters.
Real estate agents are knowledgeable about local inspection laws and are ethically responsible for making sure your best interests are kept at top of mind from the time you view a property to the time you sign the closing contract.
Learn More: What Does a Real Estate Agent Do for a Buyer?
2. Assess Your Needs and Lay Out Your Goals
A real estate agent is more than just someone who is able to negotiate your home purchase or help you with the paperwork. A great real estate agent will help you lay out your needs and goals for your home purchase. What are the must-haves on your wish list for your home?
Do you need a certain number of bathrooms? Do you require a den? Or maybe you need a two-car garage. Whether it’s trying to determine the financial parameters of your house search or just offering advice, your real estate agent will be one of your most important resources through what can be a daunting process.
3. Find a Lender and Secure Financing
Unless you plan to buy your home with cash, you'll need to apply for a mortgage. For most home buyers in Rhode Island, interest rates are among the biggest factors when choosing a lender. Doing a little upfront research and comparing options to find the best rates could save you tens of thousands of dollars over the life of your loan.
For example, in Rhode Island a typical house is worth $326,000. Assuming a 20% down payment, if you took out a 30-year mortgage for 3.5%, your monthly payment would be $1,163. But if you shopped around and found a 3% mortgage, your monthly payment would drop to about $1,100.
Getting a mortgage is a big decision – and it pays to shop around! Keep shopping until you find a lender with competitive rates who also understands your goals. Don’t get pressured into taking on a bigger loan than you’re comfortable with – work with a lender who explains what you’re really signing up for.
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4. Negotiate for the Best Possible Price
One of the most important qualities of a good real estate agent is being a great negotiator. After all, it’s important to have someone on your side who knows how to make a great deal. They could end up saving you thousands of dollars or more.
Clever Partner Agents have access to up-to-the minute data so they will be able to offer precise bidding advice. They will also guide you if you decide to make a counter offer, and they’ll let you know if your bid is too low or too high for a particular property.
If you want to know more about the home buying process and how a Clever Partner Agent can help you, fill out our online form. A Clever representative will be in touch soon to answer any questions that you may have. You’ll then be connected to a local Partner Agent for a no-obligation consultation.
Learn More: How to Find a Buyer’s Agent