Record-Breaking May for Housing Market, According to RI Realtors

GoLocalProv Business Team

Record-Breaking May for Housing Market, According to RI Realtors

More single-family home sales were sold in May than any other May since 1998, the year the RI Association of Realtors began keeping monthly records. Single-family home sales were 5.9 percent higher last month than they were in May of 2016.

The supply of homes for sale continued its downward — falling 22 percent from a year earlier, according to the Realtors. With the exception of one month, the number of homes for sale has fallen each month since May, 2015, causing prices to climb.

Last month’s median price of $250,000 represented a 4.6 percent increase from the prior May.  May’s single-family home sales price was the second highest monthly price since July of 2008.

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Multi-family home sales rose 19.5 percent, the third consecutive month of double-digit growth, while their median sales price rose 10.6 percent to $199,000. The supply of multi-family properties for sale has fallen year-over-year for the past 24 months.

“We saw a short lull in activity but that has certainly reversed. The only thing holding the market back right now is lack of inventory. On the flip side, that’s helping sellers, many of whom were unable to move during the recession years because of lost equity. Most homeowners are in a much better financial position to make a move now,” said Brenda L. Marchwicki, President of the RI Association of Realtors.

Condos Also Up

Condominium sales were also up in May, an increase of 12.4 percent over May of 2016. A 6.7 percent drop in listings helped push the May median sales price to $205,000 from $199,900 12 months earlier.

“A lack of options to choose from is making it difficult for buyers, particularly at the lower end of the price spectrum.  On the plus side, interest rates are remaining low which is helping to make homes more affordable,” said Marchwicki.


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