RI’s Housing Prices Return to 2007 Level
Monday, July 24, 2017
GoLocalProv Business Team
Rhode Island’s single-family home sales in June increased 10.2 percent and the median sales price jumped 12.2 percent over June of 2016, according to the RI Realtors.
June’s median price of $275,000 represents the highest monthly median price of single-family home sales since September of 2007.
“In 2006 and 2007, we saw prices skyrocket. It has taken us 10 years to approach those levels again but this time, home prices aren’t predicated on a speculative market fueled by subprime mortgages. Instead, high demand and a lack of inventory is driving prices up” said Brenda L. Marchwicki, President of the Rhode Island Association of Realtors.
Lack of Inventory
The last time the supply of homes for sale in June was this low was in 2004, according to the latest report from RI Realtors. Just over a four-month inventory of single-family homes remains on the market. Industry experts consider a six-month supply to be a market balanced between buyer demand and seller supply.
Condominium sales increased 5.6 percent from June of 2016 while the median sales price rose to $212,500, a 2.2 percent increase. The supply of condos for sale fell 11 percent.
The multi-family home market saw the largest gains in June, with sales rising 29.9 percent and an increase in median sales price of 13.5 percent. The number of multi-family properties for sale was 22.3 percent lower than in June of 2016.
“Last year was a record-breaking year for sales and this year, the momentum has kept going. Homes are being sold almost as soon as they hit the market. Buyers need to be prepared to act quickly, especially at the lower price levels,” Marchwicki said.