Warwick, RI – May 21, 2019 – The median price of single-family homes sold in April reached $275,000, a 2.1 percent hike from 12 months earlier. Despite the rainy weather, sales activity also increased, rising 8.7 percent year over year. Though the number of single-family homes listed for sale in April was 6.5 percent more than last year, inventory remains tight with a supply of less than four months. A market balanced between supply and demand typically has inventory that would take six months to deplete at the present rate of sales.
“Buyers are still facing a tough time getting the home they want thanks to too much competition and too few options. Homes are going under contract at a hectic pace and prices, though slowing a bit, are still on the rise. If you have a home to move to, it’s a great time to sell right now,” said Dean deTonnancourt, 2019 president of the Rhode Island Association of Realtors. “On the other hand, if you’re a buyer, interest rates are still on your side. Rates remain remarkably low which helps you get into a nicer home than you might otherwise afford.”
In the condominium market, April’s median sales price rose 10.9 percent from the prior year to $229,500. Sales activity fell 4.3 percent however, providing for some much-needed growth in inventory, which reached a supply level of 4.6 months.
At $250,000, April’s multifamily home median price represented an 8.9 percent increase from April of 2018. Diminished supply is having an impact on sales however, which decreased eight percent from the prior year. Catering largely to first-time homebuyers and investors, the multifamily home market had the least supply of inventory available with just 2.8 months of supply.
“With keen competition keeping first-time buyers from being successful in the starter single-family home market, and rising rents serving as an enticement for investors, multifamily homes have wide appeal. I wouldn’t be surprised to see prices stay strong in this market for some time,” said deTonnancourt.
See accompanying statistics and infographics here.