Warwick, RI, August 23, 2016…Once again, home sales statistics released by the Rhode Island Association of Realtors showed Rhode Island’s latest monthly sales volume eclipsing all records. Eleven hundred and forty (1140) single family homes sold in July, with a median sales price of $262,500. Those figures represent a 7.5 percent increase in sales activity since July, 2015 and a 9.8 percent increase in median price.
Though single family home sales are currently soaring, moderating pending sales indicate a more tempered market heading into fall. Homes under contract rose by just half a percent in July, compared to double-digit increases earlier this year. The Realtors Association reported that a 13.3 percent decrease in the number of homes for sale is a likely reason for the reduction in contracts. With the exception of one month, the number of listings has decreased year-over-year every month since January, 2015.
“Current conditions are fantastic for sellers. The buyers are out there. We’re seeing multiple offers and reduced selling times. If homeowners list their house with a realistic price, they should see plenty of traffic. The market could definitely use more inventory,” said Arthur Yatsko, President of the Rhode Island Association of Realtors.
Unlike the single family home market, sales activity slowed in the condominium and multi-family home sectors, falling 6.6 percent and 9.7 percent respectively, compared to 12 months earlier. Sales had been up year-over-year in the condo and multi-family markets for most of 2016 thus far, but a dip in pending sales that began in the spring translated into fewer sales this summer. Sales under contract continued to fall in the condo sector in July, suggesting that the slowdown in sales activity will continue into the fall. By contrast, pending sales rose in the multi-family market last month, foretelling a renewal in activity in August and September.
While the median price of condo sales fell 5.5 percent year-over-year, July’s median sales price of multi-family properties rose 10.1 percent to $190,000. Inventory decreased in both the condo and multi-family markets.
“There are great opportunities for buyers of all types of properties with mortgage products that offer extremely low rates and flexible down payments. But, while our supply of homes for sale hasn’t depleted to the extent seen in other areas of the country, more inventory of all types would help sustain the market. Given the upcoming elections, these conditions could change in the near future. Those looking to buy or sell may want to seriously consider making a move now, rather than later,” Yatsko said.