RI Real Estate - Sales Plummeting, Inventory Down Nearly 8%, and Prices Remain Near Record High
Tuesday, November 22, 2022
Rhode Island’s real estate market is a paradox.
The number of single-family homes on the market fell 7.9% year-over-year.
The lack of inventory kept the median price of a single-family home at near-record price. The price is up 7.3% year-over-year and now stands at $405,000.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIt is a 100% increase in Rhode Island over the past seven years.
Ben Scungio of Mott & Chace Sotheby’s International said, "Inventory -- our months of supply is down 46% year over year, so the reason why our values and our sale prices are still relatively high and different than what's going on in the rest of the country and even in a lot of the markets than our feeder markets like Boston, Connecticut, and New York --- our prices are staying high because we don't have enough homes to sell still."
Sales Activities Dropped 20%
Sales activity dropped 20.1% from the prior year, while pending sales – those sales under contract but not through the closing process in October - dropped 40.9% from the previous year. Pending sales are the leading indicator of sales activity in the near future.
“We’re seeing an interesting real estate market right now. On the one hand, sales activity has fallen to about the same level as we saw during the economic shutdown of 2020. On the other hand, even with sales dropping, inventory is so tight that prices aren’t plummeting. The good news is that inflation started to come down last month and if that continues, we should see a drop in rates. That will jump-start the market again, but even with that, we still have a supply problem to correct before we will see a balanced market again,” said Bryant Da Cruz, president of the Rhode Island Association of Realtors.
Multi-Family and Condo Trends
In the condominium market, the median sales price rose 18.5% from October 2021 to $319,900. The number of listings fell by 22.3%, however, and closed sales fell by 26.2%. Pending sales dropped year-over-year by 43.4%.
In the multi-family home market popular with investors, the median sales price rose to $437,500, a 15.1% hike as the number of listings fell 25.3% from 12 months earlier.
Economic uncertainty also helped fuel a sharp drop in multifamily home sales, which plummeted 44.7%. Pending sales also dropped by 43.6% from 12 months earlier, indicating a continued slowdown in the months ahead.
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