Rhode Island’s housing supply shows February gains
Warwick, RI – March 21, 2019 -- February sales data released today by the Rhode Island Association of Realtors and its subsidiary, State-Wide Multiple Listing Service show signs of promise for buyers who have been hindered by low inventory in Rhode Island’s housing market for the past several years.
With 5.9 percent more single-family home listings than a year ago, increased supply appears to be taming sales price growth. At $250,000, February’s median sales price was identical to that seen a year earlier. Sales data also reflected a 7.8 percent decrease in February’s single-family home closings which helped fuel the increase in supply, an indication that buyers may get some relief this spring from the fierce competition they faced last year.
"We’re starting to see a shift," said Dean deTonnancourt, President of the Rhode Island Association of Realtors. "More homes are coming on the market. Though sellers still have an advantage, as the supply of homes increases, buyers will gain a competitive edge. Sellers who adjust their price expectations accordingly will still find plenty of eager buyers but they need to be aware that those buyers will have more choices."
The supply of condominiums available for sale also increased, rising seven percent from a year ago. The median price of condominium sales fell 1.5 percent from a year earlier to $207,500 and closing activity rose 11.6 percent.
Unlike the single-family home and condo markets, the supply of multifamily properties decreased by 5.5 percent last month while the median sales price reached $255,000, an 11.6 percent increase from the same time a year ago. The number of multifamily home sales remained relatively the same, falling less than one percent.
“As the supply of single-family homes becomes more abundant and accessible for first-time buyers, we’ll likely see multifamily sales begin to moderate as well, but more slowly as rental units continue to be a fantastic investment given the market’s continued low interest rates and high rental rates,” said deTonnancourt.
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.