RECORD: Median Price of Single-Family Home in RI Now $420,000
Thursday, May 19, 2022
Despite rising interest rates, the median sale price of single-family homes sold in Rhode Island in April was $420,000, a 20.3% gain from 12 months earlier and the first time the median sales price has risen to $400,000 or above.
The new record is devastating for first-time homebuyers and middle-income families and this trend may continue despite rising interest rates that have jumped from about 3% a year ago to now more than 5%.
The increased prices, along with rising interest rates, has slowed sales for the third consecutive month. Sales data from the Rhode Island Association of Realtors pointed to a 12.5% decline in sales compared to April 2021.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTHomes put under contract in April -- but not closed by month’s end -- were also down by 20.2%, an indication that continued restraint in sales activity in the months ahead is likely.
Mass Prices
And, while Rhode Island prices continue to surge, Boston metro area prices are rocketing to even higher levels.
The Greater Boston Association of Realtors reports that last month, the median home price in the 66 communities tracked by the group hit $845,000.
Meaning the likelihood of more Massachusetts buyers coming to Rhode Island.
In RI, April Numbers
According to the Realtors in RI, “With just a 1.6% drop in listings from the previous year, April was the first month since October 2019 that the number of homes for sale had not declined year-over-year by double-digit amounts.”
One home on Irving Avenue in Providence sold for $540,000 in 2019, according to city records.
This week it was announced it closed at $1,000,000 -- 85% increase in less than three years.
Condominium sales showed more moderate movement. The median sales price rose 11.1% to $319,900 and sales declined 9.3%. Pending sales also dropped considerably, falling 22.9% from the prior year.
The drop in pending sales had been much less significant throughout the first quarter, indicating that recent interest rate hikes are having a heavy impact on prospective buyers in the condominium sector, which is often a starting point for first-time homebuyers. The number of condominiums available for sale continued to shrink. Condo inventory has fallen each month by at least 20% compared to the prior 12 months.
Multifamily home sales hit the highest median sales price in April, at $425,000, a 19.7% year-over-year gain. Activity also showed the sharpest decline in the multifamily home market. Completed sales fell 18% while properties put under contract but not closed in April fell 20.5% from the prior year.
Related Articles
- RI Home Prices Explode in Second Quarter - East Side Median Price Hits $682K, BI $1.28M
- RI Home Sales Down 6.9%, Median Price Jumps to $280K Highest Since 2007
- Median Price For Single Family Home Tops $200K For First Time Since ‘08
- RI Home Sales Drop, Median Price Rises in September
- Median Price of a House in RI Is Freezing Buyers Out—See Top 10 Most Costly
- Is the Median Price of a Rhode Island Home Headed for $400,000?
- RI Median Price for Single Family Home Falls, Finally
- Out-of-Staters Buying Up RI, Median Price of a Single-Family Home Hits $390,000
- Median Price of Single Family Home in RI Was $384,000 in July - Up 16% Over 2020
- RI’s Median Price for Single-Family Home Drops for Second Consecutive Month
