Tuesday, November 22, 2022
The Rhode Island real estate market is a paradox.
The number of single-family homes on the market fell 7.9% year over year.
The lack of inventory has kept the median price of a single-family home near record lows. The price is up 7.3% year over year and now stands at $405,000.
That’s a 100% increase in Rhode Island over the past seven years.
Ben Scungio of Mott & Chace Sotheby’s International said: “Inventory — our months of supply are down 46% year-over-year, so the reason our values and selling prices are still relatively high and different from what is happening in the rest of the country and even in many markets than our feeder markets like Boston, Connecticut and New York — our prices remain high because we don’t have enough homes yet for sale.”
Sales activity fell 20%
Sales activity fell 20.1% from a year earlier, while pending sales – those sales under contract but not through the October closing process – fell 40.9% compared to the previous year. Pending sales are the leading indicator of sales activity in the near future.
“We are currently seeing an interesting real estate market. On the one hand, sales activity has fallen to about the same level as during the 2020 economic shutdown. On the other hand, even with the drop in sales, inventories are so tight that prices are not falling. . The good news is that inflation started to come down last month and if that continues, we should see lower rates. This will revive the market, but even with this we still have a supply problem to correct before we see a balanced market again,” said Bryant Da Cruz, president of the Rhode Island Association of Realtors.
Multifamily Trends and Condos
In the condominium market, the median selling price increased by 18.5% compared to October 2021 to reach $319,900. However, the number of listings fell by 22.3% and closed sales fell by 26.2%. Pending sales fell 43.4% year over year.
In the multi-family home market popular with investors, the median sale price reached $437,500, up 15.1%, as the number of listings fell 25.3% from 12 months earlier.
Economic uncertainty also helped fuel a sharp decline in multi-family home sales, which fell 44.7%. Pending sales also fell 43.6% from 12 months earlier, indicating a continued slowdown in the months ahead.
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- RI real estate: median price of $405,000, low inventory and average mortgage payment up 53% in one year
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- Cost of buying a home jumped 55% in one year – As interest rates rise, median price in RI $416,000