New Records for Single-Family Homes: U.S. $416,000, RI $430,000 and Boston Metro $900,000

New Records for Single-Family Homes: U.S. $416,000, RI $430,000 and Boston Metro $900,000

Despite claims that increasing interest rates would slow the price of real estate or even see decreases, nationally, the price of a for a single-family median-priced home hit a new national record.

And Rhode Island hit a new record.

And, the metro-Boston area hit an unfathomable number.

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Nationally - Interest Rates Up, New Record Price

In January, the average interest rate on a 30-year mortgage was 3%.

After multiple rate increases by the Federal Reserve to fight interest rates, interest rates hit 6% for that same mortgage product, although it has settled down to 5.5%.

There was a new record nationally for the price of a home.

The median sales price of an existing home climbed to $416,000 in June, the National Association of Realtors said Wednesday, up 13.4% on the year and the highest since records began in 1999.

 

Rhode Island Another Record

In Rhode Island, the new numbers released on Wednesday by the RI Association of Realtors show prices continue to spike.

A new record high was set. The median price of a RI single-family home is now $430,000.

The number of homes sold dropped by 17% versus June of 2021.

“The highly competitive nature of today’s market and the resulting worsening affordability is reducing sales, which in turn, decreases the economic benefits that come with each home purchase. Thankfully, the inventory shortage has shined a much-needed spotlight on the housing crisis, helping everyone to understand that a concerted effort is needed to get building and rehabilitation projects underway as soon as possible,” said Agueda Del Borgo, President of the Rhode Island Association of Realtors.

Del Borgo said that Rhode Island’s real estate industry accounted for 17.8% of the state’s gross state product in 2021, or $11.7 billion.

 

Boston Metro Area - Heading to a Million?

The median selling price for homes sold last month climbed to $900,000 for the first time, which reflects a year-over-year increase of 10.9% from the median price of $811,500 in June 2021, and a 2.9% gain over the previous month’s median selling price of $875,000 in May.

The single-family home median selling price has now risen on an annual basis for 32 consecutive months dating back to November 2019, with homes sold this June selling on average for 107.6% of the original list price.

“Even as demand has cooled, there are still more buyers than properties for sale and that is keeping upward pressure on prices,” said Greater Boston Association of Realtors President Melvin A. Vieira, Jr.. He said inventory levels remain tight at just a one-to-two month supply of homes and condos for sale entering July.

“With inflation on the rise and mortgage rates up steadily since March, buyers at every level are having to dig deeper into their pockets to purchase a home which has forced some to the sidelines and others to extend their home search to lower price points and more distant suburbs. Simply put, buyers are being more cautious and cost-conscious, so homes just aren’t selling as quickly as before,” he said.