Lisa Pagano is a sales associate who joined Residential Properties Ltd. in November 2025. A Cranston resident and native who is based at the firm’s East Greenwich office, she brings with her more than 35 years of experience in sales and marketing for international corporations.
Pagano, who received her MBA from Providence College, started her professional life in corporate marketing with firms such as Nissan Motor Corp./Infiniti Division and Time Inc./Sports Illustrated before venturing into entrepreneurship, including a catering company, real estate investment and then sales for the past 10 years. She is also on the board of directors for The Tomorrow Fund, an organization that contributes financial and emotional resources to children with cancer and their families.
PBN: What trends or shifts have you observed in Rhode Island’s real estate market over the past year, and how do you expect these trends to evolve in the coming year?
PAGANO: Recent trends over the last year indicate prices have kept rising, but the pace is moderating. Rhode Island’s median single-family sale price dipped to $505,000 in October 2025, up 4.1% year over year. Inventory is higher than the low point of 2021-22 but still tight. Listings have increased year over year in 2025, yet months-of-supply remains low – roughly two months – which supports continued upward pressure on prices in desirable areas. Sales activity has been mixed month to month, but the market is less frenzied than 2020-21. Local broker mid-year recaps show slight increases in sales and average prices in Providence County in 2025.
As we move into 2026, mortgage rates are drifting down from 2022-24 highs, which should slowly widen the pool of qualified buyers and support demand. National 30-year rates were in the roughly 6.2% area late 2025 and many forecasters expect further modest declines into 2026 if the Fed eases.
That helps affordability but doesn’t erase high prices. Expect moderate price appreciation, but not the double-digit jumps of the pandemic era. With inventory slowly rising and rates cooling, price growth should continue at a more moderate pace – single-digit % annually in many scenarios. Hot submarkets, like some Providence neighborhoods and coastal towns, will outperform.
PBN: How are current economic factors and political factors – such as interest rates, tariffs, inventory levels and buyer demand – shaping the local market, and what impact do you anticipate they will have in the months ahead?
PAGANO: Interest rates and mortgage costs are still the biggest barriers to affordability. As rates eased slightly in late 2025, buyers reentered the market and purchase applications ticked up. Continued rate declines in 2026 would increase buyer activity and could accelerate price gains, while any rate surprises upward would cool demand quickly.
Tariffs are not the dominant direct driver of Rhode Island’s resale market right now – the bigger local effects come from labor and material availability for new units and renovation supply. National construction trends show cost volatility in building materials – lumber, steel – and labor shortages have constrained new-home supply. That limits how quickly inventory can expand. (Local builders and multifamily projects are the best barometer.)
Federal and state policy moves matter: e.g., higher conforming loan limits and any future Fed moves affect financing availability; R.I. state programs (down-payment assistance) are actively being used to help first-time buyers. Expect policy to continue nudging accessibility rather than changing prices outright. Bottom line: If mortgage rates fall modestly and inventory creeps up, 2026 will likely be a gradual rebound in buyer activity with continued moderate price growth; if rates spike again, expect a cool-down and slower sales.
PBN: What are your best pieces of advice for first-time homebuyers in Rhode Island who are trying to find a new place to live in 2026?
PAGANO: The most important first step for buyers is to get pre-approved (not just pre-qualified) by a lender, ideally one familiar with Rhode Island programs and local underwriting rules. Buyers should also explore R.I. Housing [and Mortgage Finance Corp.] down payment assistance early because funds are limited and require approved lenders, education courses, and income or purchase-price limits.
It’s critical to budget for total housing costs, including taxes, insurance, utilities, HOA [homeowners association] fees and a reserve for repairs. Working with a knowledgeable local buyer’s agent can help you find listings early, make strong offers and avoid costly inspection issues. In a competitive market, be ready with documents and proof of funds, and consider flexible terms like a higher deposit, a short inspection period, or an escalation clause. However, buyers should avoid waiving inspections without fully understanding the risks.
Broadening your search to nearby towns or considering condos can improve affordability and options. Compare mortgage options wisely – fixed rates suit long-term owners while ARMs [adjustable-rate mortgages] can boost short-term affordability, and pairing FHA [Federal Housing Administration]/USDA [U.S. Department of Agriculture]/ VA [Veterans Administration]/R.I. Housing loans with assistance programs reduces upfront costs – then prioritize inspections, repair estimates and long-term resale factors like location, flood risk and schools over cosmetic issues that are easier to change.
PBN: What challenges are sellers in Rhode Island facing right now, and what advice are you giving your clients as we enter the new year?
PAGANO: Good question. Sellers in Rhode Island are facing a mix of opportunities – but also some real challenges as we head into the new year. Inventory in Rhode Island remains historically low, especially for starter homes, because new construction has not kept pace with demand. This shortage continues to push prices upward and keeps many buyers sidelined. Since 2019, the median single-family home price in Rhode Island has risen about 67%, but high mortgage rates and economic uncertainty are causing some buyers to hesitate. As a result, while many homes still sell quickly, overpriced or poorly maintained properties are sitting on the market longer.
Sellers should price realistically, prepare homes thoroughly and consider listing during seasons when inventory is lower. It’s important to understand tax implications and plan ahead if buying again in the same market. Overall, tight supply keeps prices strong, but rising costs and economic pressures could gradually cool demand.
PBN: As we get into the new year, tell us one of the highlights of your 2025 year. Why was it special to you?
PAGANO: One of the true highlights of my 2025 was helping several longtime Rhode Island families make meaningful transitions into the next chapter of their lives. One moment in particular stands out: Guiding a large family who had lived in their home for more than 35 years as they sold the place where they were raised as children and moved closer to their respective grandchildren.
Another example is of a family selling their home after 60 years, now empty nesters looking to right-size. What made it so special to me wasn’t just the successful sale – it was being trusted to navigate such an emotional, life-shifting milestone with them. We shared stories, laughter, even a few tears. Watching them settle into a new home that brings them closer to the people they love reminds me why I do what I do. Real estate isn’t just about houses; it’s about people, legacy and new beginnings. That experience was a beautiful reminder, especially as we head into a new year, of how grateful I am to be part of these personal journeys here in our Rhode Island community.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on X at @Marc_La_Rock.
