PROVIDENCE – Home prices in Rhode Island increased by 5.4 percent in June 2017 as compared to the same period last year, according to a house price index report released by CoreLogic Tuesday.
Over the same period, prices in Providence metro area increased by 5.5 percent. Between May and June of this year, home prices in the area increased by 1.1 percent.
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Nationwide, home prices for June increased 6.7 percent year-over-year and 1.1 percent month over month. The firm also forecast a 5.2 percent rise in home prices nationwide by next June and a 0.6 percent rise this past July.
All six New England states had HPI growth slower than the national average. Massachusetts came closest with a year-over-year price gain of 6.5 percent followed by New Hampshire and Rhode Island with gains of 5.6 and 5.4 percent respectively. Vermont and Maine were next with 3.4 and 2.5 percent respectively.
Out of all states and the District of Columbia, Connecticut had the third slowest rate of price increase in the nation at 0.4 percent ahead of Connecticut and Alaska.
Washington had the fastest rate of growth at 12.7 percent while Alaska saw prices decrease by 0.6 percent, making it the only state to see a price regression year-over-year.
“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory,” said Dr. Frank Nothaft, chief economist for CoreLogic. “As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”
CoreLogic predicted that national HPI will increase 5.2 percent year over year from June 2017 to June 2018.
Kyle Borowski is a PBN contributing writer.
