PROVIDENCE – The Rhode Island home price index increased 19.3% year over year in May, faster than the national rate of 15.4%, according to data released Tuesday by CoreLogic.
The increase in home prices in the Ocean State was also the fastest in New England, followed by Vermont.
New England HPI growth rates year over year in May:
- Vermont: 19.2%
- New Hampshire 18.9%
- Connecticut: 17.6%
- Maine 14.3%
- Massachusetts: 14.3%
Nationally, Idaho had the largest increase year over year, with HPI rising 30.3%, followed by Arizona, where HPI increased 23.4%.
“First-time buyers are hitting a wall in many places around the country as the pace of home price rises outpace the benefits of lower borrowing costs,” said Frank Martell, CEO and president of CoreLogic. “Younger and first-time buyers, including younger millennials, are faced with the challenge of having sufficient savings for a down payment, closing costs and cash reserves.”
Corelogic said that home prices nationally are projected to increase 3.4% by May 2022.
“As we look to the balance of 2021, we expect price rises to continue, which could very well push prospective buyers out of the market in many areas and slow home price growth over the next year,” said Martell.
