If you’ve been watching the Newport County real estate market with curiosity (or perhaps anxiety), you’re not alone. The past few years have been a whirlwind of low inventory, rising rates, and competing headlines. But as we move into the second half of 2025, things are finally shifting and in a way that may bring opportunity for both buyers and sellers.
Here are three key that I’m predicting across the market for the next 6 months, and what you could expect moving forward:
1. More Inventory is Hitting the Market (Finally!)
We’re seeing more homes for sale than we have in several years, and it’s a trend that’s likely to continue. For a while, the only thing fueling the market were the so-called D’s of real estate: diamonds, diapers, divorce, downsizing, and death. That’s because so many homeowners were “locked in” to ultra-low mortgage rates they secured during COVID (rates in the 2% and 3% range) that it just didn’t make financial sense to move unless life forced their hand.
Now, things are changing. Many of those homeowners have built substantial equity and are feeling more confident about making their next move. Whether it’s a bigger home for a growing family, a new lifestyle after retirement, or simply the pursuit of something new, sellers are starting to look at today’s market as a place of opportunity, not just uncertainty.
It’s also worth noting the long-term impact of generational turnover. Baby Boomers, the largest generation of homeowners, are aging, retiring, and in many cases, passing down or selling their homes. Over the next 5 to 10 years, this demographic shift could have a significant impact on housing availability. We’re already starting to see that play out locally. This past weekend alone, we saw 62 homes across Newport County host open houses which is the most we’ve seen in a long time.
Bottom line? More inventory means more choices. That’s welcome news for buyers who’ve been starved for options.
2. Interest Rates Will Likely Remain Flat, or Taper Slightly
One of the biggest questions in real estate remains: What’s going to happen with mortgage rates? According to the latest guidance from Freddie Mac and broader mortgage industry forecasts, the general consensus is that rates will hover in the mid-6% range, with a slight chance of tapering downward later this year. Much of this depends on inflation data, Fed policy, and broader economic conditions.
“I don’t expect too much change and feel that the new reality that buyers are facing is rates in the mid 6’s to low 7’s, which is still below the 40-year average. The days of 2% and 3% rates will never return unless there’s a major economic catastrophe. I think we’ll see things settle in the 6’s for the foreseeable future.” Said Cameron Stewart, senior loan officer at Shamrock CMG Home Loans.
“With trade deals and tariffs settling down and possibly being removed or significantly reduced allowing for inflation to continue to trend downward the Fed would be more likely to reduce interest rates at least 2 times, maybe more in the second half of this year.”
So while we may not see dramatic rate drops, we are seeing a shift in mindset. Buyers are adapting, recalibrating expectations, and stepping back into the market with a clearer understanding of what affordability really means in today’s environment.
3. Prices Are Still Climbing and Likely Will Continue
If you’re waiting for prices to drop, you might be waiting a while. According to the most recent Home Price Expectations Survey, which compiles insights from over 100 economists and housing market analysts, home values are projected to rise by 3–4% annually over the next five years. Here’s the reality, prices are not dropping. There’s not going to be a magic market correction. We live in a state where there are only so many places to build and a community that is a vacation destination for many.
For sellers, this means strategic pricing is crucial. Just because the market is strong doesn’t mean you can price sky-high and expect results. The homes seeing the most success right now are the ones that are well-prepared, well-marketed, and priced to attract attention early.
For buyers, the takeaway is simple: the longer you wait, the more expensive your next home becomes. And if rates don’t move much, your total cost of acquisition only climbs. As the saying goes, “The best time to buy a home was yesterday. The second-best time is today.”
In Closing: Strategy Over Speculation
Real estate in Newport County is dynamic and evolving. The old playbook no longer applies. Whether you’re considering selling a longtime family home or hoping to make your first coastal investment, now is the time to sit down with a local expert who understands the nuances of our market.
My clients are seeing tremendous results with a consultative, tailored approach and I’d love to help you do the same.
Have questions about buying, selling, or just want to talk about your options? Reach out anytime at (401) 241-1851 or TylerB@resultswithremax.com.
Let’s write your next chapter together.
