Rhode Island Home Sellers Told to Hold Price Cuts Until After Midterms

The Rhode Island housing market is entering a volatile two-month stretch that could favor specific strategies for both buyers and sellers. Emilio DiSpirito IV, a private office advisor and license partner at Engel & Volkers Oceanside, argues that the period surrounding the November 3 midterm elections creates distinct opportunities for those willing to time their transactions carefully.

DiSpirito, who leads the DiSpirito Team and has recorded over $800 million in career sales, suggests that buyers should actively search for homes before the election. Data from the Rhode Island Association of Realtors shows that single-family home sales dropped 11.7% in September compared to the same month last year. Pending sales fell by an even steeper 14.8%. Despite this slowdown in volume, the median sales price remained stable at $534,000.

This combination of fewer sales and steady prices indicates that buyers have become more cautious without driving down values. DiSpirito believes this hesitation gives prepared buyers more negotiating power. He notes that reduced competition can lead to greater flexibility on inspections and potentially allow buyers to negotiate for seller-paid closing costs or mortgage rate buydowns.

For sellers, DiSpirito advises against making unnecessary price reductions in the days leading up to the election. He recommends that owners wait until about one week after Election Day to reassess their pricing based on showing activity and buyer feedback. He expects the window between November 4 and Thanksgiving to offer a better chance of attracting motivated purchasers as political uncertainty clears.

The agent predicts a noticeable increase in buyer activity following the midterms, driven by consumers who prefer to make major financial commitments once the political outcome is known. This post-election surge could last until Thanksgiving. He cautions, however, that this is a prediction rather than a guarantee, as mortgage rates and general economic conditions will still influence the volume of returning buyers.

There is also a secondary opportunity for buyers between Thanksgiving and New Year’s Day. Holiday schedules typically reduce the number of active shoppers, yet sellers who keep listings open through the holidays may be more motivated to close deals. This dynamic can create favorable terms for serious buyers, though it comes with the tradeoff of a smaller selection of available homes.

The underlying supply shortage continues to support property values in the state. September inventory represented just 2.9 months of supply, a figure well below the level generally considered a balanced market. DiSpirito says this scarcity is why he does not expect a widespread collapse in home prices despite the recent dip in sales volume.

DiSpirito’s guidance emphasizes strategy over optimism. He tells sellers that clearly overpriced properties should correct their pricing immediately rather than waiting for an election. For buyers, he suggests taking advantage of periods with reduced competition rather than waiting for a perfect market.