Warwick, RI – June 20, 2018…The median price of single-family homes sold in Rhode Island reached $275,000 last month, a ten percent increase over May of 2017. Rhode Island has not reached a higher monthly median sales price since August 2007 according to a report released today by the Rhode Island Association of Realtors® and its subsidiary, State-Wide Multiple Listing Service.
Single-family properties remained on the market just 49 days before selling, the shortest time frame in nearly 14 years. The number of homes for sale continued to fall year-over-year, continuing a trend of tightening inventory which began in 2015. The diminished supply resulted in a 7.6 percent drop in sales compared to a year earlier.
“Competition is fierce and buyers are finding themselves in a race to the finish line. Inventory is so tight that properties are being sold as soon as they go on the market, often in multiple bid situations,” said Joe Luca, President of the Rhode Island Association of Realtors. “Fortunately, the market isn’t being fueled by lax lending rules as we’ve seen in the past – just by pent-up demand.”
Condo Market Still Strong
The median condominium sales price rose to $221,000 in May, a 7.8 percent gain compared to 12 months earlier. Like the single-family home market, listings sold quickly and inventory continued to drop, falling 5.7 percent from May 2017. In contrast to the single-family home market however, sales activity in the condominium sector has been up over last year throughout 2018. Completed transactions increased 15.1 percent last month.
Investor-Driven Multifamily Property Sector Sees Increase in Inventory
The median price of multifamily property sales has skyrocketed, rising roughly 20 percent or more from a year earlier every month this year. A 21.2 percent increase from the prior year brought May’s median sales price to $241,107. In stark contrast to the single-family home and condo markets, inventory increased 16.1 percent since the same month last year. Sales activity has also been strong with May marking the sixth consecutive month of increased sales.