Warwick, RI (July 26, 2017) –Rhode Island’s single-family housing market saw a year-over-year gain in median price of 7.5 percent in the second quarter, according to a report released today by the Rhode Island Association of Realtors. At $258,000, the median sales price of single-family homes sold from April through June of this year was 49 percent higher than the lowest quarterly price of the last decade – $173,250 recorded in the first quarter of 2012.
Despite diminishing inventory, sales activity also continued to climb, rising 3.7 percent from a year earlier. Year-over-year sales have climbed steadily each quarter for the past three years.
“While the supply of homes for sale remains lower than last year, the market remains extremely active. Quick sales and multiple offers are common, especially when dealing with starter homes. It appears that better economic conditions and the fear of rising prices are motivating people to buy now. Conditions are ideal for sellers but if we don’t get more inventory on the market, more people will get priced out of home ownership as prices continue to escalate,” commented Brenda L. Marchwicki, president of the Rhode Island Association of Realtors.
Scituate, Burrillville and Tiverton saw the largest increases in median price in the single-family home market. With half of the homes selling for more and half selling for less, changes in median price represent a change in the type of homes sold — starter homes versus luxury homes, for example — as well as appreciation or depreciation in the market overall.
The second quarter was also strong in the condominium market. Median sales price rose 6.3 percent year-over-year to $212,500, and sales activity increased 4.1 percent.
Multifamily home sales showed the strongest gains of all housing types in the second quarter. Median sales price rose 11.1 percent year-over-year and sales increased 24.7 percent. The multifamily home market has not surpassed this year’s second quarter median sales price of $200,000 since 2007.
“According to an analysis of Census Bureau data by the Pew Research Center, there are now more households headed by renters in the U.S. than at any point since at least 1965. With more people renting and rent prices rising, the multifamily home market is a great place for investors,” explained Marchwicki.