The Median Asking Price of a Home in RI Has Jumped to $460K, and It May Go Much Higher
GoLocalProv Business Team
The Median Asking Price of a Home in RI Has Jumped to $460K, and It May Go Much Higher
There are a number of indicators as to why the prices are going to continue to climb.
Rhode Island is in a housing crisis. There is not enough inventory, coupled with soaring prices and little new construction.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe average sale price jumped to a near record — the median home price of sold listings also reached $427,500.
One example of how house prices continue to climb is 154 Arlington Avenue on Providence's East Side.
The property was sold in April of 2022 for $880,000 and received some upgrades and modifications.
It closed this month for $1,795,000.
On Wednesday, the Federal Reserve chose not to increase interest rates.
Many real estate economists are predicting interest rates may drop to the 5%-6% range by the end of the year.
“Lower interest rates, particularly given the duration of pent-up buyer demand, are certain to drive prices higher. In fact, we fully expect that once we are back down in a range of 4-5% interest rates, we will see even more buyers return to a market that is already short on inventory," said Benjamin T. Scungio, Regional Manager for Mott & Chace.
"In the current environment, it’s simply best for the consumer to consider their own needs and budget, rather than wait to make a move," he added.
Boston Factor — Even While RI Housing Costs Are Rising, They Trail MA
The median price of a single-family home in the metro-Boston area is $820,000 as of April -- more than 40% higher than the price in Rhode Island.
The pricing trends are driving even more Boston-metro residents to seek comparatively cheaper housing options in Rhode Island.