Warwick, R.I. – August 17, 2020 – Rhode Island’s median home sale price typically hits an annual peak over the summer months and this year has been no exception. Sales data released today by the Rhode Island Association of Realtors show that the median price of single-family homes sold in July rose to $331,825, an 11.5 percent gain from July of 2019 and a 7.3 percent jump from the prior month.
Closing activity also regained its footing after the three-month slowdown caused by the pandemic. Last month, 1222 single-family homes were sold in Rhode Island, compared to 1159 a year prior, an increase of 5.4 percent.
The lack of inventory remained problematic in all market sectors. Sales data released earlier this week from the National Association of Realtors pointed to an 18.2 percent national drop in July’s total inventory from 12 months earlier. By comparison, Rhode Island experienced a 35.7 percent decline among condos, single-family and multifamily homes. In the single-family sector alone, the supply of homes listed for sale through State-Wide Multiple Listing Service fell 40.6 percent year-over-year resulting in just 2.5 months of supply left on the market. Contracts signed in July but not yet closed were up 43.2 percent, an indication that the shortage shows no signs of abating any time soon.
“This is one of the best sellers’ markets we’ve seen in years,” said Shannon Buss, president of the Rhode Island Association of Realtors. “With greater profits when they sell and low interest rates on the buying side, the people who list their homes are in a terrific position to make a move. Their only challenge is the competition they will likely face when they find a suitable replacement home. Still, if their own home sale is behind them, they will be in a good position to make the winning offer.”
In other market segments, the median price of multifamily property sales also rose by double digits year-over-year last month to $300,000, an 11.1 percent gain from a year ago and the same price realized in June. Though closed sales fell 27.1 percent from the prior year, they rose 20 percent from June.
Condominium sales remained relatively stable, with July’s median sales price up just .83 percent from July of 2019, but down 3.2 percent from June. Sales, though down just under one percent from a year ago, rose 37.3 percent from the month.