RI Housing Market Reaches Long-Awaited Equilibrium
Tuesday, June 25, 2013
After years of excess supply, Rhode Island finally reached a balance between housing supply and demand in all categories of housing, in May this year.
Sharp declines in foreclosures and short sales have been major contributors to this outcome, accounting for just 19% of last month’s sales, compared with 25% of sales twelve months prior.
Single Family home sales in Rhode Island rose 21% and showed a 6% increase in median housing price from May 2012, to $207,500. Condominium sales also increased, rising 34% with a median housing price increase of 65%. Distressed sales dropped to 14 percent of all condo sales in May from 25 percent a year prior.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTSimilar trends occurred in the multi-family market, which typically attracts investors, but at a more moderate scale. Sales rose 1% while the median price rose 12%.
“Now thousands of homeowners can breathe a sigh of relief as their home equity once again begins to rise,” said Victoria Doran, President of the Rhode Island Association of Realtors.
“We’re seeing an abundance of positive indicators,” said Doran. “A word of caution though–the scales haven’t tipped completely in the opposite direction. Sellers still need to be aware that they need to price their homes appropriately. Though interest rates have only risen slightly, they do affect home affordability. Sellers need to be cognizant of both interest rates and competitive pricing when determining a listing price for their properties if they want their homes to sell within a reasonable time frame.”
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