There Are Just 500 Homes for Sale in Rhode Island Under $1 Million

There Are Just 500 Homes for Sale in Rhode Island Under $1 Million

It is spring selling season for the real estate market in Rhode Island, and in an average year in the post-COVID era, there would probably be about 2,500 homes on the market. Far more before COVID.

But today, between escalating prices and few homeowners wanting to sell, the number of options for homebuyers may be at an all-time record low.

Top realtor Stephen Antoni of Mott & Chase Sotheby's International highlighted the concerning trend.

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500 Homes for Sale Under $1 Million

“This is an interesting fact. There's less than a thousand listings, and out of those, probably 750 are really available, and 250 of them are already under contract. We still call them active, but they're already under contract and most likely on that path to being sold," said Antoni.

"Out of that group, 242 of those houses are a million-plus. So, I've never seen the market be as segregated out like that ever. The fact that 25% or more of the homes on the market are $1 million plus," he added.

Antoni said there are approximately 500 homes for sale under $1 million.

Antoni says it is critical for homebuyers to be ready to pull the trigger when they find a home that matches their needs and budget.

The average age of a first-time homebuyer is now 40 years, and there are few options, said Antoni.

 “But where is that entry-level home? Where is that even mid-range home? Where's that fixer-upper home? They're just not out there,” added Antoni.

 

 

Boomers Staying Put

One of the factors impacting inventory is that the baby boomers are not selling.

Antoni says those boomers have taken up the position, 'Why should I trade off my potentially million-dollar home here, get beat over the head with a capital gains tax, and then only be able to afford something more modest with the money that's left? I will just stay here.’

This lack of inventory has kept the median price of a single-family home at about $500,000 for much of the last year. February was slightly lower at $475,000, but that may be a seasonal aberration.

 

Add Another Obstacle for Buyers

Wall Street Journal reports:

Mortgage rates rose for the fourth straight week to the highest level since September, a sharp reversal that threatens to chill the start of the important spring home-buying season.

The average rate for a 30-year fixed mortgage was 6.38% this week, up from 6.22% last week, Freddie Mac said Thursday.

Mortgage rates fell below 6% in late February for the first time since 2022 but have since surged.