Relief for Buyers - Median Price of a Single Family Home in RI Falls, But So Does Number of Sales

Relief for Buyers - Median Price of a Single Family Home in RI Falls, But So Does Number of Sales

The Rhode Island Association of Realtors is reporting that the monthly median price of single-family homes has fallen from $430,000 in June to $410,000 for July.

This is one of the only significant month-over-month decreases in years.

The July, the median price did increase 6.8% over July of 2021.

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Closed transactions of single-family homes also fell 13.4% last month, and pending sales dropped 18.2% year-over-year.

The supply of single-family homes on the market last month remained the same as June, at 1.8 months, well below the six-month mark that characterizes a balanced market.

 

Rhode Island in Focus

“Rising interest rates and high inflation are making their mark on the housing market and causing affordability problems for many buyers. Those same factors are also affecting some prospective sellers who are choosing to wait to see what happens with the economy and rates before making a move," said Agueda Del Borgo, President of the Rhode Island Association of Realtors.

“At this point, however, supply is still extremely low, so prices may moderate, but barring any unforeseen events, we don’t expect to see them drop significantly,” Del Borgo continued. 

In the condominium market, the July 2021 median sales price of $275,000 was eclipsed by last month’s median price of $319,900, a 16.3 percent gain. Closed transactions declined by the same amount and sales under contract but not closed by month’s end were down 40.2%.

Similar trends continued in the multifamily home market, which reached the highest median price of all three sectors, at $450,000, a 21.6% gain. Sales fell 31.1% from July 2021 and pending sales fell 30.9%.

In July, the number of listings on the market fell year-over-year in all property sectors.