Market Trends

Rhode Island Housing Market Ahead of Last Year in June but Beginning to Moderate

Warwick, RI, July 26, 2016…The Rhode Island Association of Realtors released June home sale statistics today which showed moderating activity, though sales remained above the level of 12 months earlier. Single family home sales rose 2.6 percent last month compared to June, 2015, and the median sales price rose 3.6 percent to $245,000. Both sales activity and median price had seen double-digit, year-over-year monthly increases during most of the first half of the year.

“Though sales are still up over last year, the Rhode Island market lost a bit of momentum in June. It appears that tightening inventory may be beginning to impact sales,” commented Arthur Yatsko, President of the Realtors Association. The number of homes available for sale fell 14 percent in June from the previous year.

Even with more restrained growth than seen previously, a 3.5 percent increase in pending sales in June indicates that the summer single family home market will continue to be somewhat stronger than that of 2015.

Sales in the multi-family home market remained relatively flat, up .65 percent from the previous year, and median sales prices rose 8.8 percent to $185,000. Sales under contract but not yet completed, were down .24 percent and inventory fell 24 percent, both a sign of reduced sales in the months ahead.

The condominium market saw the greatest growth, with sales increasing 22.1 percent, likely owing to easier financing guidelines for condos which passed last year. Median sales price, however, fell 5.3 percent to $207,900. Pending sales were down 8.2 percent from 12 months earlier and inventory fell 4.2 percent.

“With interest rates below three percent for a fifteen-year mortgage, the cost of home ownership is unbelievably low. And with large numbers of people now credit-worthy again after suffering setbacks during the recession and having easier access to mortgages, the conditions for increased sales are here. The main thing that could restrain the market is if our supply of homes for sale continues to shrink,” said Yatsko.

The Rhode Island Association of Realtors will release second quarter sales statistics on Thursday, July 28, 2016.

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