While Still Up Year-Over-Year, Prices Moderate in R.I.’s Housing Market
Warwick, R.I. – August 17, 2022 -- According to data from State-Wide Multiple Listing Service, a subsidiary of the Rhode Island Association of Realtors, the monthly median price of single-family homes has followed an upward trend for 66 consecutive months. The rate of increase has been diminishing since April however, when the median price of homes escalated by 20% more than 12 months earlier. By July, the median price rose only 6.8 percent to $410,000, the lowest rate of increase since the spring of 2020, following the economic shutdown.
The price moderation followed a downward trend in sales which began a year ago. Closed transactions of single-family homes fell 13.4% last month and pending sales dropped 18.2% year-over-year.
The supply of single-family homes on the market last month, remained the same as June, at 1.8 months, well below the six-month mark that characterizes a balanced market.
“Rising interest rates and high inflation are making their mark on the housing market and causing affordability problems for many buyers. Those same factors are also affecting some prospective sellers who are choosing to wait to see what happens with the economy and rates before making a move.
“At this point, however, supply is still extremely low, so prices may moderate, but barring any unforeseen events, we don’t expect to see them drop significantly,” said Agueda Del Borgo, President of the Rhode Island Association of Realtors.
In the condominium market, the July 2021 median sales price of $275,000 was eclipsed by last month’s median price of $319,900, a 16.3 percent gain. Closed transactions declined by the same amount and sales under contract but not closed by month’s end were down 40.2%.
Similar trends continued in the multifamily home market, which reached the highest median price of all three sectors, at $450,000, a 21.6% gain. Sales fell 31.1% from July 2021 and pending sales fell 30.9%.
In July, the number of listings on the market fell year-over-year in all property sectors.
Months Supply: Click here for interactive display
About the Rhode Island Association of REALTORS®
The Rhode Island Association of REALTORS®, one of the largest trade organizations in Rhode Island with more than 5,000 members in nearly 1,000 offices, has been serving Rhode Islanders since 1948. Advocating for Rhode Island's property owners, the Rhode Island Association of REALTORS® provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. Last year, RI Realtors transacted $6.9 billion in residential real estate sales and $7.1 billion in total sales and rentals including commercial transactions.
The Association is one of more than 1,500 boards and associations that comprise the National Association of REALTORS® (NAR). The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries and who subscribe to a strict Code of Ethics.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.