Luxury homes continue to be in demand in the Ocean State, especially along the coast. It’s a welcome sign of the enduring strength of the economy and quality of the local market.
But while prices for the best properties appear to be rising, the number of properties sold for more than $1 million and the median price have remained stagnant for the past three years. What does that mean?
To some real estate agents, who are expected to extoll the many virtues of the local market, nothing. They expect prices and the number of sales to keep rising.
But the data on luxury home sales since 2005 included with this week’s cover story does serve as a reminder of a few things: First, sales of even the nicest properties are not immune to economic downturns. Second, the supply of available high-end homes in tiny Rhode Island, especially along the water, is limited.
That doesn’t mean prices for individual homes won’t keep rising, but the overall market for such properties, though steady, may be at its peak.