Appreciation of median sales price slowing in R.I.'s housing market
Warwick, R.I. – April 13, 2023 -- Sales statistics released by the Rhode Island Association of Realtors show no surprises in Rhode Island’s housing market as most trends from the last several months continued in March. Sales activity in the single-family home market remained well below that seen 12 months earlier and the median price of homes sold, while still above that of March 2022, showed continued deceleration in the rate of appreciation.
Only 557 single-family homes sold in March, a decrease of 23.7% year-over-year while the number of homes for sale increased 1.9% to 905. Looking back to March 2011, the last time March home sales fell to levels below 557, 5655 single-family homes were listed for sale, a marked difference.
“We don’t have the same conditions for a severe drop in prices that we did in the early 2000s. The job market remains stable and homeowners have equity in their homes. Now there simply isn’t enough supply to meet demand so our biggest problem is affordability. The good news is that we only saw a 2.6% increase in median price since March 2022 whereas last spring, the median sales price was showing double-digit appreciation year-over-year. So, prices may be starting to stabilize a bit, but we’re not likely to see any significant decline with supply and demand so far out of balance,” said Bryant Da Cruz, president of the Rhode Island Association of Realtors.
The Realtor Association reported a median sales price of single-family homes in March of $395,000, up $10,000 from March 2022.
In the condominium market, sales dropped even further, falling 29.1% from the prior year while the number of listings on the market remained unchanged. The median sales price rose 4.9% to $319,950.
Sales of multifamily homes fell 26.7% with only 135 properties on the market statewide. At $450,000, the median price of multifamily home sales rose 13.4%, the only sector of the residential market that continued to see double digit appreciation.
“While inflation is showing signs of cooling, rents continued to be an outlier and were the most significant contributor to inflation last month. Multifamily homes, always popular with investors, are in even more demand with the allure of the continuous rise in rents,” said Da Cruz.
Pending sales for single-family and multifamily homes and condominiums dropped 25, 39, and 38.3% respectively, foreshadowing a slow start to the spring sales season.
“We’re thankful that some serious housing bills are being heard by the General Assembly this year. Development of new housing stock can’t come soon enough,” 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.