The suburban enclave of Barrington, Rhode Island, has long proven an idyllic destination for luxury home seekers. Including Bristol and Warren, Barrington is part of the East Bay's bucolic collection of waterfront communities. Situated 20 minutes southeast of Providence — the closest of the three towns to the capital city — the affluent town of just over 17,000 is notable for its waterfront, architecture, and history that stretches back to the days of the earliest New England colonists.
An evolving marketplace
Barrington is rightfully celebrated for its history, including nine sites listed on the National Register of Historic Places, and a knack for transformation from an agrarian society to a manufacturing base and, at one point, a popular summer resort. But the enclave's distinct seaside character and countless outdoor activities prove irresistible for modern-day home seekers aiming to take advantage of Barrington's timeless appeal.
Barrington is considered the best place to live and raise a family in Rhode Island and among New England's most desirable communities to call home. Such accolades, paired with Barrington's strategic location and pristine semi-rural waterfront landscapes, have transformed it into an unparalleled marketplace for residential luxury real estate. And even in difficult times, it remains a lucrative market.
Barrington real estate market prices
Like many luxury markets across the country, Barrington is wading through the uncertainty that comes with mortgage rates consistently above 7% for the first time since the early 2000s. Although median home prices are trending down, several factors keep the entire East Bay locked into a seller's market — even more so than many other luxury markets.
For July 2023, the median sale price for a single-family home in Barrington was $610,000, a 10.6% decrease year-over-year. Overall, 34 homes sold for the month, representing an 88.9% increase from last year. Perhaps the biggest item of note is that home prices in Barrington are still significantly higher than the state’s national average, which sat at $450,000 in August 2023.
Heading into the latter half of the year, overall home sales are slowing, though one can expect to see fluctuations in month-to-month and year-over-year numbers as the market enters uncharted territory.
Barrington real estate trends
Both Barrington and the whole of Providence's East Bay region find themselves in an interesting position heading into the last quarter of 2023 and next year. With a relatively small footprint and as one of the most desirable places to live in Rhode Island, Barrington’s seller’s market has ruled over the area for the past several years and will continue to do so for the foreseeable future, albeit at less of an extreme, and for very different reasons than what buyers and sellers are accustomed to.
Interest rates will dictate the overall trajectory of the market as long as they remain at their current elevated levels. But the problem is actually two-fold, and in a luxury marketplace such as Barrington, where long-term ownership is the rule and not the exception, it's creating a unique situation and an even tighter market than the rest of Rhode Island.
For mid-September, the current 30-year fixed-rate mortgage is at 7.80%. The 15-year fixed rate is 6.51%. While both reflect a slight dip over the past few weeks, the numbers remain at 20-year highs.
These interest rates have forced buyers into a more methodical and cautious mode of home shopping. While home prices are showing some signs of decreasing, it's not enough to offset mortgage rates that are nearly three times the level of what they were just a couple of years ago. There remains plenty of uncertainty as to whether we're nearing a peak or if rates will continue on an upward trajectory.
The second concern is supply. One of the primary drivers of the pandemic-era housing market and why home prices increased as quickly as they did over the past several years is inventory. Or, rather, a lack thereof. However, in something of an ironic twist, the historically low mortgage rates that once fueled the home-buying frenzy are now seemingly locking buyers out of the market.
More and more, sellers who might otherwise be listing homes for sale, whether out of a need to move or make good on investment, are holding onto properties for fear of giving up their historical 3% and sub-3% mortgage rates. The result is a market devoid of meaningful inventory.
Forecast for Barrington
With only three months to go before the end of 2023 and the luxury market entering one of its slower seasons, don't expect any significant wholesale changes for the remainder of the year — or early into 2024. Transactions will mostly occur based on need, whether to buy or sell, especially if mortgage rates remain steady or increase between now and the year's end. But, as one of Rhode Island's most attractive spots to call home, there remain plenty of bright spots.
Outlook for buyers
For buyers, lock in early with a trusted real estate agent well-versed in Barrington's luxury residential marketplace. That relationship and their reach and expertise are often the difference in securing a partnership that suits you and your specific needs. If you're not rushing to buy, this is a perfect time to explore your options. With less pressure on you to immediately secure a home, you can better evaluate the Barrington marketplace, establish clear investment goals, and act quickly and decisively should an opportunity arise.
Outlook for sellers
For sellers, the current Barrington market still allows you to maximize your home's overall value, especially if you acquired it within the past few years. The catch, of course, is you'll be entering a market vastly changed from when you purchased. But based on Barrington's timeless appeal and continued high demand, if those issues are of no concern, then listing your home for sale remains quite lucrative in Rhode Island's East Bay luxury market.
Buy or sell with a trusted Barrington expert on your side
Whether you're looking to secure a home within the Barrington, RI, real estate market or want to take advantage of the ongoing demand for luxury residences in the area, contact Robert Rutley today to begin your home-buying or selling journey. As one of Rhode Island's top real estate agents, allow Robert's experience and expertise to help you navigate the East Bay and Barrington luxury real estate markets.
