Single Family Home Prices in Nov Up 16% in a Year, Mott & Chace’s Marion Says Prices May Push Higher

Single Family Home Prices in Nov Up 16% in a Year, Mott & Chace’s Marion Says Prices May Push Higher

The median price of single-family homes sold in Rhode Island last month climbed 16.1 percent from 12 months earlier to $375,000, the Rhode Island Association of Realtors announced on Wednesday.

Kim Marion of Mott & Chace Sotheby's International says that the first quarter of 2022 will be a difficult time for buyers but a tremendous time for sellers.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

SEE MARION'S INTERVIEW ABOVE

The number of sales in November was down 8.2% due to the lack of inventory. It is the fifth consecutive month with lower sales volume over the previous year.

The median price of a single-family home in Rhode Island is now $375,000.

Last week, Realtor.com released a 2022 economic forecast which predicted the Providence market would rank as the number six metropolitan nationwide in listing price appreciation and home sales growth next year.

“Though prices are escalating, houses are moving. Sales may have dropped from 12 months earlier, but they still hit a second-best record for November. Preliminary data for December shows that sales should continue to be strong through the remainder of the year,” said Agueda Del Borgo, President of the Rhode Island Association of Realtors.

Mott & Chace's Marion says that the combination of low inventory, out-of state-buyers, low-interest rates, and Rhode Island being a “hot market” may continue to push prices upward.

 

Out of State Buyers Are Pushing Prices Higher

November data indicates that 24% of all realtor-assisted property sales involved buyers from other states. In the luxury market comprised of properties sold for $1 million or more, 53% of sales are derived from out-of-state buyers.

“With the threat of climbing interest rates and rising rents, buyers are focused on securing a home with a steady mortgage payment to help stabilize expenses. They’re often competing with out-of-state buyers who are turning to Rhode Island because our market is still a bargain, even with the rise in prices that we’ve seen. The median single-family home price in Massachusetts last month was $520,000. Compare that to our median price of $375,000, add in the allure of coastal living and close proximity to Boston, and it’s easy to understand Rhode Island’s appeal. But, with the increased number of those buyers adding to the depletion of our housing inventory, there’s much work to be done to shore up our housing stock,” commented Del Borgo.

 

Condos and Multifamily

In addition, condominium sales rose by 11.7% and multifamily home closings increased 4.7% from November 2020. Both sectors also experienced an increase in median price. The median condominium price of $293,500 represented a 17.4% hike while the median price of multifamily homes rose to $385,000, a jump of $16.6 percent. Both property types also saw a year-over-year increase in contracts signed but not completed in November, the bulk of which should close in December or January.

Inventory remained low among all property types. Single-family home inventory was 20.7% below that of last year, condominium inventory was 38% lower and multifamily properties available for sale declined by 33.4%.