Why Now Really Is a Great Time to Buy a Home in Rhode Island

If you’ve been holding off on purchasing a home because you’ve heard that mortgage rates are too high or inventory is too low, it’s time to take a fresh look. Despite what you may be hearing from “armchair” real estate experts, many top Realtors® in Rhode Island (myself included) are encouraging serious buyers to act now.

Let’s break down the facts—and the opportunities.

Market Update: Rhode Island Real Estate by the Numbers

According to the Rhode Island Association of Realtors®:

• Inventory is up: The number of homes for sale increased nearly 30% year-over-year (March 2024 vs. March 2025).
• Mortgage rates are holding steady: Average rates hover around 7%, which is now considered the new normal.
• Home prices continue to rise: The median sale price in Rhode Island is up 9.1% over the past year

What This Means for You as a Buyer

If you’re financially prepared to buy, now may be your best window of opportunity. Here’s why:

1. Today’s Rate Is Your Maximum Rate

Mortgage rates near 7% may feel high compared to the historic lows of 2020–2021—but those days are behind us. Instead of waiting for rates to drop, lock in now and refinance later if and when they do.

Pro Tip:

Talk to your lender about future refinancing costs. Buying now with the potential to refinance later gives you flexibility and protects you from future rate hikes.

2. Less Competition = More Leverage

When rates drop, buyer activity will surge, creating intense competition and likely leading to:

• Multiple offer situations
• Higher sale prices
• Fewer negotiating opportunities

By entering the market now, you’re competing with fewer buyers, giving you a better shot at finding a home without the bidding war.

3. Low Inventory = Long-Term Price Growth

Even with a recent uptick in listings, inventory in Rhode Island is still tight—and likely to stay that way. Why?

• Many current homeowners locked in mortgages at 2.5–3.5%, making them reluctant to sell.
• New listings will continue to trickle in slowly.
• Limited supply supports price stability and appreciation.

Key Takeaway:

Waiting could mean paying 9–10% more next year for the same house you can afford now.

4. Real Estate = Long-Term Wealth

Over the past 5 years, Rhode Island real estate has seen double-digit percentage gains. Very few investments offer the same combination of appreciation, tax advantages, and leverage.

According to Chris Witten, President of the Rhode Island Association of Realtors®:

“With all the economic uncertainty around us, many buyers seem to be temporarily pumping the brakes on their home search. However, the chance of rates falling any time soon seems very unlikely. Historically, mortgage rates are still below the 54-year average so playing the waiting game may not be the best decision. The best time to buy a home was yesterday. The second-best time is today.” 

He adds:

“Our median price here in the Ocean State is only going to continue to rise in the foreseeable future. Considering that the National Association of Realtors estimates the median net worth of a homeowner to be $430,000 in 2025 compared to the median net worth of a renter at $10,000, buyers who are choosing to sit on the sidelines could be missing an opportunity to build wealth that could help insulate them from future economic uncertainty.”

Ready to Buy? Here’s What to Do Next

If you’re thinking about entering the market, I’m here to help you do it strategically. Together we can:

• Get set up on a customized MLS search tailored to your needs
  
• Monitor new listings and price changes in real time
  
• Understand what you can afford based on today’s rates
• Plan ahead for a potential refinance opportunity

Bottom Line:

If the numbers make sense today, they’ll be even better when rates drop. But if you wait, you risk higher prices and more competition.

Whether you’re buying your first home, relocating, or exploring investment opportunities, I’d love to help you run the numbers and find a property you love—before everyone else jumps back in. Reach out today to start your home search with expert guidance and local insight.

Data Points provided by the Rhode Island Association of Realtors®.