According to the data, it would seem so. We used statistics gleaned from the last seven years to compare the average list price per month in Rhode Island with the average selling price per month. The difference between the two has a lot to do with seller confidence. The greater the difference, or the more sellers think someone will pay for their home versus what buyers will actually spend on the home, shows that sellers are confident in the original listing prices.
However, greater differences also may tell the tale of vastly overpriced homes. The greatest difference between list price and selling price occurred in December of 2009 with a difference of $64K. That’s quite a disparity. December of 2009 marked the height of the recession, so this figure makes sense. The lowest figure comes in during the summer of 2011 with a $15K average difference between list and sell price.
So, where are we headed? Since October of 2014, the data has shown that the difference is growing once again. This could mean increased seller confidence, but it could also point to another dip in the economy on the horizon. It could also point to sellers inaccurately pricing their homes. While data is useful, the real estate world can be very unpredictable, and certain cities and towns in Rhode Island may be less affected than others.
Your best bet? Work with a trusted, local real estate agent. Find someone who will advocate for you on a personal level with regards to your real estate purchase – an agent who will get into a crawl space if necessary during your inspection. That kind of partner is needed to navigate the complexities of purchasing or selling a home.
