January 2021 Home Sales Prices Up 7%
Friday, February 19, 2021
The January housing market in Rhode Island remained strong but out-of-state buyer interest waned
Single-family home sales continued to rise year-over-year according to the January sales data released by the Rhode Island Association of Realtors.
Rhode Island saw a 7% increase in sales compared to January 2020, following four months of double-digit growth.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTSales were constrained by a lack of inventory.
The East Side of Providence on just 13 sales saw the median price jump to $865,000.
Supply and Demand
The supply of homes for sale was roughly half of what was available a year ago before the pandemic hit. In January of 2020, a shortage of inventory already existed.
As of January, it would have taken only 1.3 months to deplete the entire supply of Rhode Island homes for sale, a new low. A six-month supply is typically considered a market balanced between seller supply and buyer demand.
The median price of single-family sales rose to $334,000 from $296,750 12 months earlier, a 12.6% hike.
“January was the busiest month on record in terms of single-family home sales at the beginning of the year. It was also the month we had the lowest inventory of homes for sale. If anyone is thinking of moving, this year would be the ideal time to do it,” said Leann D’Ettore, president of the Rhode Island Association of Realtors.
According to the Realtors, condominium sales were up by 29.5% in January from 12 months earlier, while the median sales price climbed 7.8% to $249,450. A 2.2-month supply of condos remained on the market last month, giving first-time homebuyers, empty nesters, and others, slightly more choice than that available in the single-family home market, at a lower price point.
After a boom in December, multifamily home sales stabilized, falling 1.9% year-over-year. The median price of $330,000 represented a 13.8% increase from January 2020. In contrast to other sectors of the market, inventory grew by 8.3%.
"After seeing out-of-state buyers flock to Rhode Island last year, the first month of the New Year experienced a slowdown in cross border sales. Of the top states sending buyers to Rhode Island last year – Massachusetts, New York and Connecticut – only Massachusetts buyers showed increased year-over-year activity in January, with 54% more buyers purchasing a home in Rhode Island last month than in the previous year. After shooting up 260% in December, buyers from New York fell 4% last month," said the Realtors. But, one month does not make a trend.
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