July 19, 2019 – Housing sales in Rhode Island became more restrained in June, following a strong end to the spring selling season in May. The Rhode Island Association of Realtors reported that sales declined 5.1 percent last month compared to June of 2018. Pending sales however, increased 14.4 percent, an indication that completed transactions could be on the rise in July and August. That increase may be short-lived though, as inventory continued to decline in June, falling 4.1 percent year-over-year.
The median price of single-family homes, though still climbing, showed moderating appreciation. At $299,500, the median price of a single-family home sold in June was 3.3 percent higher than in June of the prior year.
“Overall our spring selling season was very active. Low interest rates have kept the gates open for homebuyers. Since the Federal Reserve has indicated that rates should remain low, we’re hopeful that the market will have continued energy. Homeowners who are on the fence about selling should know that the conditions of today’s market are in their favor. Rates are low and buyers are out there and ready to purchase,” said Dean deTonnancourt, President of the Rhode Island Association of Realtors.
The condominium market saw the opposite trend in activity in June, with sales increasing 12.3 percent and pending sales growing by 32 percent from the prior year. The number of condos listed for sale remained relatively stable year to year, falling just 1.3 percent.
At $238,000, the median price of condominiums sold last month was 3.8 percent higher than in June of 2018. The rate of appreciation in the condo sector has been trending down for the past four months.
Closing activity in the multifamily market fell significantly. Down 25.6 percent from the prior year, only 152 multifamily properties sold in June. The number of listings has fallen from the prior year each month since February and the rate of decline has been growing, leading to a downward trend in closing activity that began at the end of last year. Five of the past seven months have seen fewer multi-family sales than seen 12 months earlier.
Despite the decreased number of closed transactions, multifamily properties under contract but not yet sold rose for the third consecutive month, rising 17.3 percent last month. The median price of June sales showed an annual gain of 11.3 percent.