Market Trends

Rhode Island Housing Market Still Soaring in November

Warwick, RI — December 23, 2016… Home sales statistics released today by the Rhode Island Association of Realtors show that the state’s single-family home sales rose nearly 19 percent year-over year.  Despite a hike in foreclosure and short sales which typically lowers the median sales price, November’s median price also increased, rising 11.4 percent to $245,000.

Pending sales continue to show promise for Rhode Island’s single-family home market in the near future.  Sales in process last month rose 3.6 percent from the previous year, foretelling the probability of a continued rise in completed sales activity in December and January.

The supply of single-family homes for sale diminished in November however, which may begin to slow sales later in the first quarter. There were 3439 single-family homes on the market last month compared to 4319 in November of 2015. By comparison, the last significant tightening of inventory occurred in 2002, at which point monthly inventory fell to a low of 1594 listings in May, the height of the spring market which typically experiences among the highest supply all year.

“Rhode Island’s housing market is still seeing remarkable gains. Overall, interest rates are still low despite recent increases and though the supply of homes available for buyers is shrinking, there is still a decent assortment of properties to choose from. We may see the market settle a bit in 2017 but we’re heading into the New Year with good momentum behind us,” said Brenda Marchwicki, President of the Rhode Island Association of Realtors.

Both condominium and multifamily property sales also skyrocketed in November, each jumping more than 40 percent since November of 2015. November’s median sales price also made gains in each category with the median price of condo sales increasing 11.9 percent from 12 months earlier to $225,000 and 4.6 percent in the multifamily property sector to $183,000. Sales in process were also up from last year by 6.3 percent in the condo market and 5.2 percent in the multifamily category indicating continued momentum in the near future as those incomplete sales reach the closing table.

“In some instances, sellers have been waiting to regain the equity lost during the housing downturn before putting their home up for sale.  We’re hopeful that this year’s strong price gains will enable more Rhode Islanders to list their homes in the New Year and reap the reward of being able to buy their new home while mortgage rates are still relatively low,” commented Marchwicki.

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