There Are Almost No Houses to Buy in RI
Wednesday, February 16, 2022
The prices of houses have been on a dramatic upward swing for years, but now there are virtually no houses for sale in Rhode Island.
As of last week, there were only five homes for sale on the East Side of Providence and two of them were over $1 million.
In East Greenwich, realtor Allen Gammon reports that the inventory in the highly desirable suburb is almost nonexistent. “The least expensive single-family home active for sale in East Greenwich is $574,000. The next [least expensive home] is $1.1 million," said Gammons.
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“There are no homes in the $600s, $700s, $800s, $900s, or $1 million [range]. Three of the seven available for sale are not built yet,” adds Gammons.
Mott & Chace’s Sarah Huard tells GoLocal that she tried to connect a Boston buyer with a house that just went on the market last week. The seller’s realtor “had 17 showings yesterday afternoon and he has 16 as of this morning” according to Huard who said that home went to pending in three days.
Huard says, “Everyone knows that you can sell quickly but then how are you going to be able to buy quickly when inventory is less than a month. You know the absorption rate decreased 55 percent. It's just like I said, what's here today is gone tomorrow.”
It was initially projected that 2022 would be the year that real estate rate of price increases might slow and inventory might increase, but through the first six weeks of the years, the indications are that 2022 might be as challenging a year for buyers as the past two pandemic impacted years.
“The lack of inventory, the resulting increase in prices, and likely, buyer fatigue, contributed to tempered activity in the fourth quarter. Overall, the housing market could likely continue to moderate a little in the year ahead, but due to overwhelming pent-up demand, sales should remain strong. We don’t expect prices to drop due to the short supply of properties for sale but rising interest rates may also ease the demand side a little bit, which could slow the price acceleration,” said Agueda Del Borgo, president of the Rhode Island Association of Realtors.
Despite the lessening of pandemic restrictions and the vaccine, fewer homes sold in 2021 than sold in 2020 across Rhode Island.
Re-Forecasting
Fortune is reporting that Zillow has dramatically changed its forecast for the year.
“Look no further than Zillow. Back in December, the home listing site predicted that U.S. home values would climb 11% this year. Economists at Zillow now say that forecast is too conservative. Their latest forecast finds home prices are set to spike 16.4% between December 2021 and December 2022. If it comes to fruition, it would mark another brutal year for home shoppers," writes Fortune.
"Why is Zillow raising its 2022 home price growth forecast? A lot of it boils down to housing inventory. During the pandemic, inventory plunged to a four-decade low as more buyers rushed into the market. That trend was predicted to reverse late last year as forbearance protection programs lapsed and mortgage rates rose. But not only has that not happened, the inventory situation has gotten worse. In January, there were just over 923,000 U.S. homes listed for sale on Zillow. That’s down 40.5% from the pre-pandemic level in January 2020, and down 19.5% from January 2021," add Fortune.
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