The once-white-hot market for high-end homes in the Ocean State has cooled ever so slightly. But Realtors say that’s mostly because fewer owners are willing to give up their prized properties than during the COVID-19 pandemic.
For the second straight year, sales of $1 million-plus homes have declined, following nine straight years of gains.
As this week’s cover story reports, however, limited inventory has been the biggest deterrent to sales across all levels of the housing market, including the priciest properties.
“Supply needs to catch up with demand,” said Gustave White Sotheby’s International Realty agent David Huberman.
That’s long been the story in Rhode Island, though last year’s rising interest rates may have also played a role in declining high-end sales, say Realtors.
The 560 homes sold for more than $1 million fell well short of 2021’s 698. But last year’s total was nearly double the then-record of 293 set in 2019, before the pandemic frenzy set in.
Owners, it seems, are just not as interested in cashing in as many were just a few years ago.
However, when desirable properties do come on the market, they are selling as fast as ever. And high-end buyers are increasingly looking away from the waterfront.
Sellers in Providence have been the beneficiaries, with sales increasing sixfold since 2019.
Realtors expect those trends to continue this year, with Providence poised to be among the hottest housing markets in the country.
More inventory would better stabilize the market at all price levels. But high-end sales remain robust, even though not quite record setting.