Warwick, RI — November 21, 2018 – October saw much of the same in Rhode Island’s single-family home sale trends. The median sales price of homes sold last month continued to rise year-over-year for the 21st consecutive month while sales activity decreased for the eighth consecutive month.
At $271,750, October’s median sales price was 2.6 percent higher than that of October 2017. Down 6.6 percent from 12 months earlier, closing activity continued to moderate following two years of record-breaking sales. With 3802 homes on the market last month, Rhode Island’s housing market saw a 5.2 percent increase in inventory from the prior year.
“We didn’t see any surprises in the single-family home market last month. Rhode Island’s housing trends have been consistent. Though the supply of homes for sale is increasing, it remains low. As a result, closing activity has slowed down since last year but the median price of the homes that did sell, rose from the prior year. While the trends are holding for now, the housing market is starting to become more balanced and price gains are beginning to ease as inventory increases,” said Dean deTonnancourt, President of the Rhode Island Association of Realtors.
At $250,950, the median price of multifamily home sales rose 14.4 percent from the $219,450 price realized 12 months earlier. Unlike the single-family home market, closing activity of multifamily homes has also increased year-over-year for the past several months. The number of listings available for sale grew by 13.6 percent in October, the sixth month of double-digit growth.
“The multifamily home market has been steadied by enhanced consumer confidence and the lack of options available for first-time homeowners. Investors are jumping in to capitalize on rising rents. On the other hand, first-time buyers are buying multifamily options to get into an affordable home where the mortgage is offset by rental income. Multifamily properties are a win-win on both ends of the spectrum,” said deTonnancourt.
The condominium sector saw marginal drops in both median price and sales activity last month. October’s median price of condominium sales fell 1.2 percent from a year earlier to $197,500 and closing activity decreased by 2.7 percent. The number of listings on the market increased 6.7 percent from October of 2017.
“Overall the market is reacting as expected. It’s likely that we’ll continue to see more incremental movement to a more balanced market as we finish out the year,” deTonnancourt commented.