Record Breaking: Median Price of a Single-Family Home in RI Has Jumped to $445,000 in Past 30 Days

Record Breaking: Median Price of a Single-Family Home in RI Has Jumped to $445,000 in Past 30 Days

Robert Rutley of Mott & Chace Sotheby's International said in an interview on GoLocal LIVE Wednesday that the median price of a single-family home has risen to $445,000 in the past 30 days. This is a record for Rhode Island.

It is a remarkable jump in price, and a daunting number for home buyers, especially new home buyers.

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Homebuyers are also now facing interest rates ranging between 6.75% and 7.25%. 

In May, the Rhode Island Association of Realtors reported the median price at $427,500.

“The last 30 days [data] tells me that the average price for a single-family home in Rhode Island is about $445 000; that's the median price,” said Rutley.

He added that the East Side of Providence in the last 30 days "was about $795,000.”

He also said that on the East Side, there are no longer those “lower priced” $300,000 to $500,000 homes — those are gone.

 

$500,000 Next Year?

Rutley also forewarned that he expects prices to continue to climb.

"I would expect that to go up by the end of the year, and by next spring, I expect the price to be at $500,000 to $525,000," said Rutley.

 

Major Driving Factor

Driving the prices to new record levels is declining inventory.

“This year, compared to last year, this year the past 30 days, we had about 690 sales statewide of single-family homes last year; at this time, we had well over a thousand, so right now, we're looking at a 32% decrease in sales statewide for single-family homes,” said Rutley.

 

Historic Perspective

Since May of 2016 -- just seven years ago, the median price of a single-family home has jumped 86%, outpacing income growth approximately two to one.

The U.S. Federal Reserve is expected is implement two more interest rate increases further raising mortgage rates -- and further chilling sellers who have few options for housing.