Nicole Hofstetter is a real estate agent for RI Real Estate Services who has worked in real estate since 2013, assisting buyers and sellers in the Rhode Island market. She works as a full-time real estate agent and assists clients with the steps involved in buying and selling property, including market research, property listings, negotiations and closings.
PBN: Looking back at 2025, what was last year like for you in the real estate profession?
HOFSTETTER: 2025 was one of the most challenging environments of the past 40 years. Elevated prices and rates around 7% were a major headwind for buyers, coupled with sellers who are locked in at a 3% mortgage who do not want and or can’t afford to sell and buy in this market due to the low borrowing costs they have on their present home. These are very challenging dynamics.
PBN: Now in 2026, looking ahead, what are your expectations for the new year, in terms of the Rhode Island market, buyer and seller behaviors, and how this may all impact your career?
HOFSTETTER: 2026 looks like it will pick up where 2025 left off for now. The Fed is handcuffed with inflation running at 3%, which is above their 2% target. I think the market is beginning to thaw in Rhode Island and we are moving toward a more balanced market. But a balanced market is likely more of a 2027-28 story here in R.I. We just don’t have the inventory and regulatory backdrop to ramp up supply, but it is happening slowly but surely.
PBN: Inventory challenges have been a recurring theme in Rhode Island. What are you telling clients about how to navigate these difficulties?
HOFSTETTER: The best advice we can give consumers is that you need to purchase a property that makes sense for your family and your budget. Additionally, they should be focused on the long term, not the short term, and sometimes renting might make more sense than buying depending on their time preference.
PBN: As technology, marketing tools and client expectations evolve in an age of artificial intelligence and ever-increasing smartphone connectivity, what changes are you seeing in how real estate professionals need to operate to stay competitive in 2026?
HOFSTETTER: Thankfully, real estate is still a relationship business. Technology and artificial intelligence will streamline the delivery of data and the speed at which we can operate. But at the end of the day, people still want to work with someone who has their best interest in mind, whether they are buying or selling.
PBN: What keeps you most optimistic about Rhode Island real estate, the market and the profession in 2026?
HOFSTETTER: Topographically and geographically, Rhode Island is one of the nicest places in the country that you can live in. We have all four seasons, and we have gorgeous storybook villages. We have 400 miles of coastline, amazing restaurants, one of the best airports in the country, and we are perfectly situated between Boston and New York. And, by the way, you can be skiing in two hours. We may be the smallest state, but we are the best state to live in for quality of life.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on X at @Marc_La_Rock.
