WARWICK – Home values in Rhode Island jumped another 10 percentage points in May, over 2017, to a median price of $275,000, according to the Rhode Island Association of Realtors Wednesday.
The price is the highest since August 2007, according to the association and its subsidiary, the State-wide Multiple Listing Service.
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Properties also were selling faster, an average of 49 days on market, the shortest time-frame in almost 14 years, according to the Realtors.
Tightened inventory continued as well, a trend that began in 2015. The supply resulted in an 8 percent drop in sales volume compared to May 2017.
“Competition is fierce, and buyers are finding themselves in a race to the finish line,” said Joseph Luca, president of the association. “Inventory is so tight that properties are being sold as soon as they go on the market, often in multiple bid situations.”
Pent-up demand, not relaxed lending rules, are driving the phenomenon, he said.
In condominium sales, the median price rose almost 8 percent in May to $221,000. Inventory dropped in this category as well, down 6 percent from last year.
In multifamily sales, the price rose a whopping 20 percent over May 2017, to $241,107. Inventory in this category rose 16 percent, and sales activity strengthened in May, with the month marking the sixth consecutive month of increased sales.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@PBN.com.
