Real estate markets shift. Mortgage rates rise and fall, demand cools and heats back up, and headlines often make it sound like the sky is falling. But if there’s one lesson history teaches us, it’s this: the housing market always recovers.

Here in Watch Hill, Weekapaug, Charlestown, Stonington, and Mystic, our luxury secondary home market is unique. Inventory is scarce, demand is steady, and when the right property comes along, the buyers who act decisively are the ones who win - and benefit from long-term gains.

What the Numbers Tell Us

Across the country, home sales slowed over the past two years, partly due to affordability challenges as mortgage rates climbed. But experts agree: this slowdown is temporary.

According to Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR), home sales are projected to rebound from about 4 million in 2023 to roughly 4.6 million by 2026 (NAR Forecast) See the graph below - when activity returns, competition will rise.

In our market, where inventory is limited, this means buyers who wait may face more competition and higher prices when conditions shift.

Timing the Market Is Nearly Impossible

Many buyers think, “I’ll wait until prices drop or rates improve.” But here’s the reality:

• If you like a property, chances are others like it too.
  
• Waiting often means someone else acts first and secures it.
  
• Exceptional properties - whether a home near the Village in Watch Hill, a cottage on the pond in Weekapaug, or a waterfront retreat in Stonington - rarely come back on the market.
  

In this region, scarcity drives value. Even if you pay a small premium to secure the right property today, history shows it’s likely to appreciate significantly over time.

Proof from the Past

• 1980s: Mortgage rates soared above 18%. Sales slowed… until rates came down - then they surged back.
  
• 2008 Financial Crisis: A major downturn, yet prices and activity recovered over time.
  
• 2020 Pandemic: Home sales halted overnight, but demand roared back stronger than expected.
  

In each case, the slowdown was temporary. The buyers who stepped in when others hesitated benefited most.

Why Acting Matters in Our Local Market

Our coastline offers something rare: limited land, historic charm, and unmatched lifestyle value. From the Flying Horse Carousel to East Beach walks, people buy here for more than a property - they buy a legacy.

That’s why, if you’re serious about purchasing in this area, being prepared matters:

• Watch the market closely.
  
• Move quickly when you find the right property.
  
• Remember that long-term value here has consistently increased.
  

The Smart Buyer’s Advantage

If you’ve been considering Watch Hill, Weekapaug, or the surrounding area, the data, history, and local realities all point to the same conclusion:

• Trying to “time the market” rarely works.
  
• Acting decisively when you find the right home pays off.
  
• In the luxury secondary home market, long-term appreciation is the rule, not the exception.
  
  

To explore available properties or learn more about the unique dynamics of our local market, visit WatchHillRIRealEstate.com