RI Real Estate: Will There Be a Big Spring? Rents Are Up, Relief for 1st-Time Buyers
Wednesday, February 01, 2023
The spring season is coming soon. With interest rates in the 5% to 6% range and low supply, the big question is whether will sellers be ready to take advantage.
"You know, we're not going to see interest rates anytime in the near future at like two and a half three percent, so I think it slows down quite a few buyers, however, that doesn't mean that we're not going to see a huge influx of demand, “ said Robert Rutley of Mott and Chace Sotheby’s International.
“There's not even a lot of houses listed on the East Side of Providence right now, which is Providence’s main marketplace,” said Rutley.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"While some areas are seeing significant price declines, Rutley does not see that trend hitting the Providence area.
“I think Providence is super unique to the rest of the United States. There are places like Austin, San Francisco, other places that had huge price growth initially when we went into COVID that has seen dramatic price drops,” said Rutley.
“We're not going to see it here I think that we're still going to grow prices, and I think that I think that the values of everybody's homes, even if they bought them last year or at the height of the market, they're still going to see price growth,” he added.
Nationally, Rents Are Declining, But in Providence, They Are Increasing
Nationwide rent prices sank another 0.3% in January, according to the latest data from Apartment List. This marks the fifth consecutive month of negative rent growth, and we are nearing the end of a particularly-slow winter season in which rent prices sank faster than in previous years.
Some highlights include:
- Rents in Providence increased 1.2% month-over-month in January, compared to a 0.3% decrease nationally.
- Year-over-year rent growth in Providence currently stands at 1.3%, compared to -1.2% at this time last year. Rents in Providence are up by 18.1% since the start of the pandemic in March 2020.
- Median rents in Providence currently stand at $1055 for a 1-bedroom apartment and $1396 for a two-bedroom.
Governor McKee Announces $17,500 for 1st-Time Homebuyers
Governor Dan McKee has announced the launch of the new RI Statewide Down payment assistance grant, that aims to create more homeownership opportunities for first-time homebuyers.
The program addresses significant financial barriers to homeownership amplified by rising housing costs throughout the state. Available to eligible Rhode Island first-time homebuyers, the program offers $17,500 in down payment and closing cost assistance grants. The program is being funded with $30 million of the $250 million in federal American Rescue Plan Act (ARPA) State Fiscal recovery funds earmarked to address housing issues in Rhode Island. RIHousing will serve as the administrator of the program.
“Homeownership is one of the most important ways to build generational wealth, yet Rhode Island has one of the lowest homeownership rates in the country, largely because families and individuals cannot afford the down payment,” said McKee. “As we seize the moment to make significant investments in housing and in communities across the state, this down payment assistance program is an important boost for families looking to make their home in Rhode Island.”
Built upon the success of programs such as FirstGenHomeRI and 10KDPA, the RI Statewide DPA Grant Program was developed to reduce the gaps in homeownership created by rapid and often volatile changes in Rhode Island’s housing market. The grant-awarded assistance aims to create more homeownership opportunities for low- and moderate-income first-time homebuyers who will benefit from increased access to resources for successful and sustainable homeownership.
Eligible applicants must be first-time homebuyers purchasing a 1-4 family home or condominium in Rhode Island; meet income and credit score guidelines; and must live in the home as their primary residence. Homebuyers must also complete a RIHousing-approved Homebuyer Education class to prepare them for sustainable homeownership. The down payment assistance is a grant that does not need to be repaid.
RIHousing is administering the program on behalf of the state of Rhode Island. Interested first-time homebuyers can find complete details and how to apply online at www.ristatewide-dpa.com or call 401-450-1391.
