With the recent increase in real estate prices, inventory being so low, and the general public often referring to this market as “crazy,” I find myself digging deeper, looking to answer the question: where do we go from here?
Of course, I don’t have a crystal ball and cannot predict the future, but looking back and diving into the data provides enough insight to formulate a logical opinion that is reasonable to rely upon. Consider the following:
From September 2008 through August 2009 (12 months total), there were 153 single family houses sold in Barrington, Rhode Island. The median sale price during that year was $316,000, and the median price per square foot was $203. Over the course of the last 12 months, there have been 323 single family home sales in Barrington. The median sale price was $565,000, and the median sale price per square foot was $305. These numbers represent an annual increase in sale price of 4.5%, and an annual increase in the price per square foot of 3.5%. A “normal” real estate market is considered to increase 3-5% annually.
My conclusion from these numbers is that although things have “spiked” a bit recently, the overall prices of real estate spanning a large period of time are quite healthy. I believe that this will produce a market going forward that eases a bit over time, but does not depress or go backwards. Sellers can take advantage of the fact that home prices are back up and it’s a great time to sell. Buyers can feel comfortable knowing that the recent increase in prices is a correction from some slower times that preceded this market, and that looking backwards and forwards, owning real estate over a reasonable period of time is still proving to be a very sound investment.
Please feel free to reach out to our experienced team with any questions about our local real estate market, and we will be happy to provide advice and insight.
About Chart House Realtors
Written by Matthew Antonio, Team Leader for Chart House Realtors in Barrington, RI.
Chart House Realtors combines the best aspects of size and scale. We are a small boutique firm with 8 full-time, local members. We operate out of our office in Barrington, RI conducting business throughout RI and MA. We are also affiliated with Keller Williams, which is the largest real estate brand in the world, with more agents, more sales and more reach than any other real estate company. So, our clients get the best of both worlds!
Our small, local size gives us the ability to craft a unique personalized plan for each and every client. At the same time, the size and scale of Keller Williams allows us to reach buyers and sellers on a national and international level. Year-to-date, Chart House is ranked among the top 1% in sales across all agents in Rhode Island and Massachusetts.
If you are considering buying or selling property anywhere in Southern New England, we would love to hear from you.