2022 closes with continued drop in R.I. home sales
Warwick, R.I, -- January 18, 2023 – Single-family home sales data released today by the Rhode Island Association of Realtors relayed a 41.4% year-over-year drop in December in closed transactions compared to one year earlier. And, while the median price of those sales still showed a 4% annual gain, the rate of appreciation decreased considerably throughout the second half of 2021. At $389,950, December’s median sales price was the first time the median price dropped below $400,000 since the first quarter of 2022.
The data was pulled from the State-Wide Multiple Listing Service, the real estate information exchange owned by the Rhode Island Association of Realtors. MLS relayed a 1.3-month supply of homes for sale at the current rate of sales, the lowest since monthly record-keeping began in 1998. The average days a home spent on the market fell slightly to 36 from 38 in December of 2021 and pending sales – those homes under contract in December but not closed by the end of the month - fell by 39.1% from 12 months earlier, a sign of continued moderation in sales activity in the months ahead.
“The supply of homes for sale is historically low and that should protect homeowners from any sudden or significant drop in values. If thinking about selling however, they should follow the advice of a Realtor to price realistically. While the ratio of original list price to sales price is still 99%, the days of multiple offers coming in thousands of dollars over asking price are over,” said Bryant Da Cruz, 2023 president of the Rhode Island Association of Realtors.
Sales activity tumbled most in the multifamily home market, dropping 49.4% compared to 12 months prior. The median price of multifamily home sales in December saw the highest gains of all housing types, however. The price of $429,900 represented a 10.2% gain from the $390,000 median price realized in December 2021. Pending sales fell by 44.9% year-over-year and the average days on the market climbed by 9.7%, another indication of slowing activity in the months ahead.
Only 140 condominiums were sold last month compared to 217 in December 2021, a 35.5% drop. The median price of condominium sales of $335,900 represented an 8.4% year-over year increase. Pending contracts fell sharply, dropping 49.9%.
“While we don’t expect to see a big swing in home values in 2023, activity in the housing market will be largely affected by inflation, consumer confidence, and what happens with interest rates. Our state’s ability to lessen the impact of our housing shortage by lessening the impediments to the construction of workforce housing, will also be key in regaining normalcy to the market over time,” commented Da Cruz.
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.