Tuesday 22 November 2022
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Rhode Island’s real estate market is a paradox.
The number of single-family homes on the market fell by 7.9% year-on-year.
The lack of inventory has kept the median price of a single-family home at a near-record price. The price is up 7.3% year-over-year and now stands at $405,000.
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This is a 100% increase in Rhode Island over the past seven years.
Ben Scungio of Mott & Chace Sotheby’s International said: “Inventory – our months’ supply is down 46% year-on-year, so the reason our values and our sale prices are still relatively high and different from the rest of the country and even in many of the markets as our feeder markets like Boston, Connecticut and New York — our prices remain high because we don’t have enough houses to sell yet.”
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Sales activity fell 20%
Sales activity fell 20.1% from a year earlier, while pending sales – those sales under contract but not through the closing process in October – fell 40.9% from a year earlier. 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 we saw during the economic shutdown of 2020. On the other hand, even with sales down, inventory is so tight that prices don’t drop. The good news is that inflation started to fall last month and if this continues, we should see a drop in rates. That will get the market going again, but even with that we still have a supply problem to fix before we’ll see a balanced market again,” said Bryant Da Cruz, president of the Rhode Island Association of Realtors.
Multifamily and Apartment Trends
In the condominium market, the median sales price increased by 18.5% to $319,900 as of October 2021. However, the number of listings fell by 22.3% and closed sales fell by 26.2%. Pending sales fell 43.4% year-on-year.
In the multifamily home market popular with investors, the median sales price rose to $437,500, a 15.1% increase as the number of listings fell 25.3% from 12 months earlier.
Economic uncertainty also helped fuel a sharp decline in multifamily home sales, which fell 44.7%. Pending sales also fell 43.6% from 12 months earlier, indicating a continued slowdown in the coming months.
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