RI Has Lowest Inventory of Homes for Sale During Spring Season on Record

RI Has Lowest Inventory of Homes for Sale During Spring Season on Record

The number of homes for sale for the spring season in Rhode Island is the lowest on record.

With just 1192 single-family homes on the market in Rhode Island, the current inventory is approximately 25% less than the previous monthly record low of 1594 in the spring of 2002, said the RI Association of Realtors.

Not only has the number of single-family homes for sale averaged roughly half of that recorded during the first quarter of 2020, there seems to be no letup in sight. 

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According to the realtors, at the current rate of sales, if no more listings were added to the supply, no single-family homes would be available for purchase within 1.2 months, continuing a record low set in February.

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“Right now, we have the perfect storm of high demand and low supply. We’ve seen renewed interest in moving to homes that better suit the remote lifestyle add to the demand side, as well as enhanced investor interest sparked by rising rents and prices. Unfortunately, our supply has been constricted by a history of constrained housing construction, especially at the low end.  Builders have faced too many costly zoning regulations and now they’re also facing unprecedented prices for materials,” said Leann D’Ettore, president of the Rhode Island Association of Realtors.

“When you think about how many purchases you make for your home, it’s easy to understand how housing drives the economy. It’s critical that we develop a plan that helps get homes built and gives more options to first-time homeowners,” said D’Ettore, added.

RI Real Estate by the Numbers

First-quarter statistics released Thursday by RI Realtors show that the median sales price of single-family homes rose to $330,000, a 13.8% year-over-year increase. Sales rose 4.5% year-over-year.

The investor-driven, multifamily home market saw even greater gains. The first-quarter median sales price of multifamily homes was $335,000, a 16.9% increase from January through March of last year. Sales activity also flourished, rising 19.8%. Homes closed within 41 days, the shortest time frame of all property types, indicating a prevalence of cash sales not held up by the mortgage process.

“Not only do first-time buyers have a lot of competition in the market overall, but purchasing a home is also made harder by having to compete with investors who have easy access to cash. Typically, the rents gained by those who own and reside in multifamily properties are a big help to homeowners just starting out, but unfortunately, those potential buyers are at an even greater disadvantage in the multifamily home market right now,” said D’Ettore.

Condominiums have been an alternative in the first quarter. Sales activity rose 23.2% from a year ago while the median price of $282,500, though 7.1% higher than in the first quarter last year.