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Doug Whiteman By Doug Whiteman

The financial crisis touched off by the coronavirus outbreak has raised concerns about home values in Rhode Island and across the U.S.

Despite the lowest mortgage rates on record, homeowners in some parts of the country have seen their property values go down as the pandemic has made homebuying and selling much more of a challenge.

Real estate agents have stopped holding open houses because of social distancing needs, and buyers are now touring houses via videos, 3D technology and live conferencing.

How's the market doing in Rhode Island? It's hot, according to Zillow. Find out if that's likely to change.

Current home values in Rhode Island

Home values have been rising throughout Rhode Island and are up 6.8% from a year ago.

Statewide, the median value for a single-family home — meaning half are worth more, half are worth less — is currently $647,439, Realtor says.

Real estate agents say would-be homebuyers in some parts of the country are starting to overcome the obstacles caused by COVID-19 and are going virtual house hunting to take advantage of today's bargain mortgage rates and the low monthly house payments they provide.

Here's how that works in Rhode Island: Let's say you want to buy a mid-priced home using a 30-year fixed-rate mortgage at the current average interest, which is a low 3.33%, according to mortgage company Freddie Mac.

A 30-year mortgage for a $647,439 home at 3.33% would give a typical Rhode Island homebuyer a monthly payment of $2,277, assuming a 20% down payment.

How the Rhode Island housing market stacks up

Couple overlooking water and boats
Backstage Bettie / Shutterstock
Rhode Island couples can sit by a harbor and watch the boats in their downtown city

The state's median home value is higher than the U.S. median of $248,948, which is up 5.1% from a year ago.

While the coronavirus is expected to continue hanging over the U.S. economy like a dark cloud, Zillow forecasts that U.S. home values will rise 5.1% over the next year, while in Rhode Island, they're predicted to rise 4.2%.

Homes right now are going on the market in Rhode Island at a median price of $232 per square foot, versus $134 per square foot nationwide.

Are you looking to buy? Take a look at today's best mortgage rates where you live.

Rhode Island home prices over the last 10 years

Year Avg. Price
2020* $307,236
2019 $287,725
2018 $279,358
2017 $259,175
2016 $239,958
2015 $226,483
2014 $220,858
2013 $213,492
2012 $208,125
2011 $215,358
2010 $229,592
2009 $232,483

*2020 price average through March 31, 2020.

How much for an average-sized home?

Here's what a 2,500-square-foot home in Rhode Island is worth now, and how that's changed over the last decade, based on the Zillow Home Value Index.

Year Avg. Price
2020* $580,312
2019 $497,500
2018 $485,000
2017 $455,000
2016 $412,500
2015 $390,000
2014 $377,500
2013 $362,500
2012 $355,000
2011 $362,500
2010 $395,000
2009 $395,000

*2020 price average through March 31, 2020.

About the Author

Doug Whiteman

Doug Whiteman

Editor-in-Chief

Doug Whiteman is the editor-in-chief of MoneyWise. He has been quoted by The Wall Street Journal, USA Today and CNBC.com and has been interviewed on Fox Business, CBS Radio and the syndicated TV show "First Business."

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