Gloria Kurz is the founder and broker of record behind Mansion & Manors, a former longtime independent real estate brokerage in Jamestown that operated for 30 years in Newport County, southern Rhode Island and South Carolina that was recently acquired by Residential Properties Ltd. to expand its Jamestown presence. In addition to being a licensed real estate broker, Kurz held a law degree and is a former member of the American Bar Association.
PBN: What was your 2024 like in the Rhode Island real estate industry?
KURZ: 2024 was transitional because it was an election year. Historically, the presidential election itself doesn’t impact the housing market dramatically – the economy does.
Despite concerns about the economy, including mortgage interest rates which remain elevated compared to prior years, Rhode Island home prices continued to increase. The number of sales below $500,000 decreased 11.1%, while the number of sales between $500,000 and $1 million increased almost 28%; the number of sales between $1 million and $5 million increased 30% – 721 homes in 2024 versus 553 homes in 2023. There were 22 sales above $5 million, which represents a 29% increase over 2023, when 17 homes sold in that price range.
Record-breaking sales occurred in Jamestown ($12,250,000), North Kingstown ($9,750,000), Block Island ($7,710,000) and Providence ($6,850,000), which is a clear demonstration of the wealth in the state and the enduring strength of the luxury segment of Rhode Island’s housing market.
PBN: What are some of the biggest challenges for you and your firm right now as you try to help your clients buy and sell homes?
KURZ: There are multiple challenges that we and our colleagues in other offices face going into 2025. One of the key concerns is the continued lack of inventory throughout the state of Rhode Island, which parallels the situation in many markets throughout the U.S. As of Jan. 3, only 846 homes are for sale in R.I., with an average price point of $1,141,170. Sellers and homebuyers are both impacted by this low inventory.
Some potential sellers won’t list their homes for sale because current mortgage rates make it difficult, if not impossible, for them to afford the price of a new home. As a result, a lot of homeowners who might downsize, upgrade or just “move on” are waiting out the market until it changes.
From a buyer’s perspective, a lack of inventory creates a very competitive market, in which buyers compete for the few properties available. This can result in bidding wars and drive up home prices. Buyers may have little power and limited protection in the transaction, as sellers are likely to receive cash offers from others who have waived contingencies – like inspections – and are willing to assume more risk. As a result, housing affordability and the mortgage rate “lock-in effect” are continuing to remain key challenges. Another challenge for both sellers and buyers is navigating the new real estate landscape with respect to the issue of representation and compensation.
PBN: What are your best tips to prospective home sellers in this market in the Rhode Island area?
KURZ: There are some indicators on a national level that price growth may slow in 2025. The jury’s still out on that and we know that administrative changes with respect to trade, fiscal and regulatory policies could impact the outlook for economic growth, inflation, interest rates and housing. We’re already seeing a little volatility with respect to mortgage interest rates. As such, it’s important for a prospective home seller to be proactive and start preparation now if they’re interested in selling.
There’s one common denominator when properties are shown. The well-known adage that “you only have one chance to make a first impression” is as important in the marketing of your home as it is if you are preparing for a job interview. As such, preparations should include making necessary improvements to a home, clearing clutter and maximizing curb appeal.
PBN: Why is it so important that a home seller finds a reputable real estate agent to list their property? How big of a difference can it make?
KURZ: It’s extremely important, as research shows that a Realtor is best equipped to assist a seller to meet their highest priorities: marketing the home to potential buyers, pricing the home competitively and selling it within a specific time frame. Reputation, trustworthiness and honesty are key factors in making a decision about a Realtor. The right Realtor can make a real difference to a seller.
The National Association of Realtors tracks sales prices and their research shows that FSBOs (“for sale by owner”) typically sell for less than the selling price of other homes. FSBOs sold at a median of $380,000 in 2023, up from $310,000 in 2022, still far lower than the median selling price of all homes, which was $435,000. According to NAR, 90% of sellers used a real estate agent – up slightly from the prior year and FSBOs were at a historical low.
PBN: What goals are you and your colleagues trying to meet for 2025, and why?
KURZ: Our most important goal is to focus on our relationships with our clients – both sellers and buyers – and continue to provide them with the expertise needed to navigate the challenges inherent in selling or buying a home in today’s market. Our clients always come first, and our success is measured by how well we serve them.
For sellers, this means ensuring they’re provided the depth of marketing resources necessary to be competitive in today’s climate in different platforms – including social media – so they’re able to realize the highest return on their investment.
For buyers, it means educating them to the market and the underlying values of different areas; making them aware of negotiating strategies such as multiple offers; and introducing them to resources needed to protect their interests, including licensed inspectors, engineers, surveyors, attorneys and/or mortgage lenders.
[A] home has been and remains the most valuable asset most people own. It is incumbent upon us, as Realtors, to ensure clients have a high level of confidence in us and our experience and [it’s] critical that integrity and honesty are the core of our practice.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on X @Marc_La_Rock.