PROVIDENCE – The median price of a Rhode Island single-family home increased 5.5 percent year over year in June to $290,000, according to Rhode Island Association of Realtors Inc. Friday.
The median price of a single-family home in June was the highest monthly median in the state since July 2006.
The number of single-family homes sold declined 3.6 percent to 1,191, with the average number of days on the market at 45 days, compared with 52 one year prior.
“There’s no doubt that our biggest problem right now is that we can’t meet the pent-up demand for housing. People aren’t selling,” said Joe Luca, 2018 president of the Rhode Island Association of Realtors, in prepared remarks. “They’re staying in their homes longer for a number of reasons – fewer people are being forced to sell due to distressed sales, some people refinanced to extremely low rates that they don’t want to give up, others don’t want to sell because they’re scared they won’t be able to find a home to move to in this market. On top of all that, Rhode Island remains last in the country in construction starts and the few new builds that we do have aren’t at a price point that first-time homeowners or most of the middle class can afford.”
Distressed sales of single-family homes declined 45.6 percent year over year to 35, following 62 distressed sales in June 2017.
Luca added that, “Housing drives the economy, so we need to start attacking this issue on multiple levels.”
There were 205 multifamily home sales in June, compared with 200 one year prior. The median sale price for a multifamily home for the month was $250,000, a 19.1 percent increase from $210,000 in June 2017.
“There’s a big demand for rental housing, and investors are more than happy to meet that demand,” said Luca. “Plus, multifamily homes are a great option for first-time buyers who need a little help with the mortgage, and as home prices and interest rates rise, that population is growing. We’ll begin to see prices of multifamily homes begin to moderate if inventory continues to grow. That’s not going to happen overnight but it’s a step in the right direction.”
Condominiums in Rhode Island sold for a median price of $230,000 in June, an 8.2 percent increase from $212,500 in June 2017. There were 227 condos sold for the month, compared with 245 one year prior.
Chris Bergenheim is the PBN web editor.