Warwick, RI, May 24, 2017…The multifamily home sector ruled Rhode Island’s housing market in April. Investors looking to capitalize on rising rents drove a 43 percent increase in sales over April of 2016. The median price of those sales rose 6.9 percent from the prior year, to $192,500 according to statistics released today by the Rhode Island Association of Realtors.
“When investors are participating in the market, that’s a good sign that consumer confidence is high and there are still good deals out there. The trick is being able to act quickly and competitively when spotting a hot property,” said Brenda L. Marchwicki, President of the Rhode Island Association of Realtors.
In contrast to the multifamily home market, sales of single-family homes fell 4.1 percent. Such sales had a median sales price of $245,500, a 1.9 percent increase over the prior year.
Condominiums sales showed the same trend. Condo sales fell two percent last month but saw the most significant increase in median sales price of all property types with a 19.3 percent gain. At $234,900, the median price of condo sales in April was the highest it has been since November of 2014.
“The availability of smaller and less expensive starter homes is extremely limited right now and investors are edging out first-time buyers in the multifamily market. Ultimately, that has made condos an enticing option for many people. And, since lending restrictions on condos eased last year, more buyers are able to seal the deal,” commented Marchwicki.
The supply of homes for sale dipped among all property types last month and sales in process fell as well. Slower sales in the months ahead are likely as a result of tightening inventory.