R.I. Median Home Sales Price Continues to Rise Year-Over-Year
Warwick, R.I. – July 20, 2022 – Second quarter home sales data released today by the Rhode Island Association of Realtors and its subsidiary, State-Wide Multiple Listing Service, displayed a continued trend of waning sales that started in the third quarter of last year. Closed transactions fell 14.1% in the second quarter of this year from the same time in 2021.
Despite slowing sales, prices continue to climb due to the severe supply shortage that began years before the pandemic, and which has worsened since. The median price of single-family homes rose 14.4% to $422,000 in quarter two.
The slowdown in activity has increased the state’s housing supply slightly. However, insufficient home construction, a reluctance to sell by homeowners who locked into historically low interest rates before the recent rate hikes, and an increasing influx of out-of-state buyers will continue to hamper supply, so a sharp change in price trends is unlikely.
Residential property sales from out-of-state buyers accounted for 27.4% of sales last quarter compared to 25.9% during the same period in 2021. Transactions of $1 million or more however, involved fewer buyers from other states, down to 41.7% of all luxury sales from 46.8% last year.
“The highly competitive nature of today’s market and the resulting worsening affordability is reducing sales, which in turn, decreases the economic benefits that come with each home purchase. Thankfully, the inventory shortage has shined a much-needed spotlight on the housing crisis, helping everyone to understand that a concerted effort is needed to get building and rehabilitation projects underway as soon as possible,” said Agueda Del Borgo, President of the Rhode Island Association of Realtors.
Del Borgo further explained that Rhode Island’s real estate industry accounted for 17.8% of the state’s gross state product in 2021, or $11.7 billion.
Second quarter condominium sales saw a drop of 19.1% year-over-year, while the median price of those sales rose 11% to $322,000 from a year ago.
Multifamily home sales fell 18.9% and the median sales price rose to $425,000, a 19.7% increase. The multifamily home segment flourished last year as investors, often armed with cash, bought up properties to capitalize on rising rents.
Unlike the last market downturn which was marred by week mortgage requirements and subprime lending, the number of distressed properties – foreclosures and short sales - fell among single-family and multi-family homes and stayed the same among condominium purchases.
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.