After four years of limited inventory and surging prices, the Newport County housing market may be poised for some much-needed balance in 2025. While challenges remain for buyers and sellers alike, this spring may bring a breath of fresh air as more inventory is expected to hit the market, alleviating some of the intense pressure we’ve seen in recent years.
It’s important to recognize that the Newport County housing market has changed significantly since 2019, and while it’s natural to wish for the prices of the past, adjusting to today’s reality is key. Home values in this area reflect the high demand to purchase in Newport County, because it is such a special place to live. Though it can be tough to accept that prices are higher than they once were, understanding that Newport County consistently carries some of the highest costs of acquisition in Rhode Island is an important part of navigating the market.
More Inventory, Tapering Prices
The scarcity of available homes has been a defining feature of the Newport County market, but 2025 could mark a turning point. With increased inventory expected this spring, buyers may find more options to choose from, a welcome change after years of fierce competition. However, the days of skyrocketing prices appear to be behind us. Home values are likely to stabilize, tapering off from the record-breaking highs of the past few years. This shift could create opportunities for buyers who have felt priced out of the market.
Keep an Eye on Tiverton
I believe that Tiverton is on the cusp of significant growth, with 2025 poised to bring an influx of buyers seeking value and lifestyle in this charming farm coast town. As Aquidneck Island’s housing market remains competitive, Tiverton offers an attractive alternative, blending affordability with accessibility to both Rhode Island and Massachusetts. Buyers are increasingly drawn to its serene waterfront, developing local culture and food scene, and deep rooted sense of community, making it an appealing option for those feeling priced out of neighboring towns. With rising demand and untapped potential, Tiverton is set to see property values climb as more people recognize it as a hidden gem that offers a lifestyle without major compromise.
Mortgage Rates: The New Normal
For buyers and sellers, mortgage rates remain a critical factor. While many still hope for rates to dip below 5%, the reality is that we’re likely in a new normal of 6-7%. Rates could fall into the mid-5% range at some point in the future, but it’s unlikely to happen this year. For Newport County buyers, this means adjusting expectations and finding creative ways to achieve homeownership—whether through exploring loan programs, tapping into savings, or leveraging assistance from family.
Equity Gains for Recent Homeowners
Homeowners who purchased in the last five years may find themselves in an enviable position. Rising home values have built significant equity, which can be used to meet life-based needs, such as upgrading, downsizing, or investing in other opportunities. This could also motivate more sellers to enter the market, loosening the lock-in effect that has kept many homeowners from listing their properties due to lower fixed mortgage rates.
The “D’s” That Drive Housing Decisions
Life changes are often the biggest drivers of real estate transactions. I always remind my clients of the “D’s” that influence housing decisions: Death, Divorce, Diamonds, Diapers, and Downsizing. In Newport County, these factors will continue to shape the market, especially as Baby Boomers—America’s largest generation—begin downsizing or selling their homes over the next 5-10 years. This generational shift will likely bring more properties to market and provide new opportunities for buyers.
Looking Ahead: Opportunities and Realities
While 2025 may not bring a full recovery or drastic changes, there’s reason for optimism. Buyers seem to be adjusting to the higher-rate environment, and the expected influx of inventory will provide much-needed relief. For sellers, understanding the current market dynamics is key to capitalizing on their investment. Newport County continues to be a highly desirable area, and with a more balanced market, both buyers and sellers can look forward to a year of new opportunities.
As we move into 2025, creative strategies and realistic expectations will be essential for success in Newport County’s housing market. Whether you’re looking to buy, sell, or simply better understand your options, navigating this shifting landscape with an experienced professional will make all the difference.For more information on the local market or assistance with your real estate needs, please contact Tyler Bernadyn, co-owner of RE/MAX Results and Real Estate contributor for WhatsUpNewp. Tyler prides himself on a community-focused, results-driven approach to his business and has an incredible amount of experience and track record of proven success. You can contact him via email at TylerB@resultswithremax.com or directly at 401-241-1851.