Real Estate in Newport RI, much like the rest of the country, had a great year. But how did Newport fare alongside the rest of the nation? Here’s where we stand on 2013.
Nationally and in Rhode Island:
The Case/Shiller National Index, an index of national home prices, experienced a 10.06% increase year over year through September 2013. That’s the largest 12-month gain since March of 2006! Rhode Island median home prices appreciated 10.48% with an 18.9% increase in volume! The increase in volume is a strong sign of a strengthening market.
Single Families – Newport, RI
Newport’s median price appreciation lagged behind the national and state average with a price increase of only 2.1%. That said, Newport dwarfed the rest of the state with a whopping 25.9% increase in the number of single family homes sold since 2011.
Multi Families – Newport, RI
Newport sales volume is up 51.8%! As mentioned in my blog from last year, we’ve certainly made a turn and volume is the indicator. The increase in volume coupled with slower price appreciation shows just how strong and healthy Newport’s market is by maintaining steady prices while still increasing volume.
The Newport Multi Family market has boomed this year with investors seeking higher yields on their money. Volume is up only 5.9% for this year, but since 2011, volume has increased 63.3%. Median sale prices for Multi families went through the roof this year - up 23.4%! It looks like investors are willing to stomach a smaller return on their investment to take advantage of cheap financing and inexpensive inventory.
Condominiums – Newport, RI
Newport Condominiums have been on a steady increase with a price appreciation of 16% and volume is up 12.2%. This trend suggests strong improvement in the second home market - great news for home owners here in Newport!
What to expect for 2014
While inventory was the real estate catch phrase in 2012 and 2013, interest rates will be the driving factor in 2014. With the FED’s tapering of Quantitative Easing starting in January, interest rates will climb steadily in the near term. This rise in rates will slow down national price appreciation but not completely stop it. I feel volume will continue to rise as people take advantage of the still historically low rates. While 2014 may be a plateau, it will still be an excellent time to buy, and all indications point to another great year for RI real estate! If you’d like to take advantage of market conditions now, call or email me or any one of our highly qualified agents.