PROVIDENCE – Rhode Island home prices continued to “skyrocket” in April, according to the Rhode Island Association of Realtors, with the median single-family home sale price rising 18.1% year over year to an all-time-high of $349,000.
The association said Tuesday that an “extremely low inventory” in the state would be depleted in 1.2 months at the current rate of sales activity, well below a five- to six-month supply that would indicate a balanced market. The depletion of inventory was said to be a major contributing factor in driving the state’s home price surge.
There were 855 single-family homes sold in April, a rise of 15.9% year over year. Listings totaled 1,113, a decline of 51% from one year prior. Pending sales also increased 48.6% in that time to 1,606.
In another sign that home sales are hot, the average number of days a sold home was on the market declined 44.4% year over year to 35 days.
“It’s hard to believe the appreciation that we’ve seen in the housing market in the past few years. In April 2015, our median sales price didn’t even hit $200,000,” said Leann D’Ettore, president of the Rhode Island Association of Realtors. “Now just six years later, we’re seeing more than a 75% gain. That’s great news for homeowners but for those trying to buy their first home, the scarcity of homes for sale and accompanying rising prices are making for a difficult home search.”
The condominium market in Rhode Island also heated up in April. Sales rose 95.7% year over year to 225 for the month. The median price of a condo in the state also rose 15.3% from one year prior to $288,000. Condo listings in the Ocean State totaled 387, a decline of 37.1% year over year. Pending sales also rose from 203 in April 2020 to 502 in April 2021.
The rise in sale in the condo market was said to be driven by buyers shut out of the single-family and multifamily home markets.
“We need more housing stock of all types in Rhode Island and until we get it, supply and demand are going to be unbalanced. It’s so important that we remember that real estate drives the economy and that younger generations need the chance to build wealth through homeownership. This issue deserves the attention of our legislators and regulators,” said D’Ettore.
Multifamily homes in Rhode Island sold for a median price of $355,000 in April, a 25.6% increase from one year prior. Sales totaled 211, an increase from 121 one year prior. Despite the increase in sales, listings rose 3.6% year over year to 342. Pending sales totaled 512, a 106.5% increase year over year.
“Multifamily homes are popular because they provide a means to homeownership, which provides income through rentals for those needing the extra infusion of monthly cash. But those properties are also attractive to cash-investor buyers looking to capitalize on rising rents and escalating real estate values. With incentives for multifamily homes at both ends of the spectrum, it’s not surprising to see prices rising so rapidly,” said D’Ettore.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
