RI May Home Sales Up 5% Year Over Year

RI May Home Sales Up 5% Year Over Year

The median sale price of home in Rhode Island was up 5 percent in the month of May over the same time in 2015.  According to the Rhode Island Association of Realtors, 986 single family homes sold in Rhode Island last month, May marked the 18th consecutive month of increased year-over-year sales.  Sales activity rose nearly 19 percent compared to May, 2015. 

Pending sales increased over 2015, an indication that a slowdown over the summer is unlikely despite inventory levels that continue to remain below last year’s. Currently, there is just over a 5-month supply of single family homes for sale, giving sellers a slight edge, though that varies by area. Industry experts refer to a 6-month supply as a balanced market.

“Realtors are busy. It’s been a while since we’ve seen this level of sustained activity.  Buyers are tapping into the lowest interest rates in three years and home owners who were not in a position to sell before, are now able to do so. Even people who lost their home due to job loss or some other financial issue during the recession, are now able to get back into the market again. Consumers on both sides of the transaction are seeing the value in making a move,” commented Arthur Yatsko, president of the Rhode Island Association of Realtors.

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The multi-family housing market number of sales rose 30 percent from 12 months earlier and the median sales price rose 18 percent.

The median price in the condominium market however, decreased in May though the number of condo sales grew by 11 percent.  The median sales price of condos sold in May dropped 10 percent to $199,900.

“It’s not unusual for a sales promotion in one condo complex to skew the number of condo sales or the median selling price considerably, particularly when we’re looking at the time frame of only one month. Median sales price in the condo market is often up one month and down the next,” explained Yatsko.

“Overall we’re looking at positive trends. We’re continuing to see foreclosures and short sales move out of the market, as well as brisk sales of all property types,” said Yatsko.