Warwick, RI – June 21, 2019 – Strong momentum continued in Rhode Island’s housing market last month according to statistics released today by the Rhode Island Association of Realtors. With 1076 single-family sales, closing activity topped May 2018 sales figures by 11.5 percent while the median sales price of those homes reached more than $300,000 for the first time. At $300,500, May’s median price represented a 9.3 percent increase over May 2018.
Inventory also saw a needed increase, though listings remain scarce with a supply of just four months, well below the six-month indicator of a balanced market.
“The housing market is booming right now. We’re seeing multiple offer situations on a regular basis and though prices are rising, Rhode Island properties are still a tremendous value compared to nearby markets. In Massachusetts, for example, the median price of single-family homes generally runs anywhere from 25-50 percent higher than what we see here. Also, we’re seeing some of the lowest interest rates we’ve seen in a while. Those low rates are really helping to drive sales,” said Dean deTonnancourt, 2019 President of the Rhode Island Association of Realtors.
Coastal towns saw the highest gains in appreciation with Middletown, Charlestown and Narragansett leading the pack with more than a 70 percent gain in median price.
May was also a stellar month for the multifamily home market. Closing activity rose 6.6 percent from the prior year while median sales price rose 10.9 percent to $267,375. Supply remains low at just over four months with no end in sight as the number of listings on the market continues to drop. The multifamily market had 15.7 percent fewer listings last month than it did in May 2018.
Condo sales followed suit with other sectors of the market. Both closing activity and median price rose approximately five percent in May.