GoLocalProv | Business | Since Pre-Pandemic, Cost of a Home in RI Has Jumped More Than 50%

Sunday, August 13, 2023

GoLocal Business Team

When comparing pre-pandemic data from the second quarter of 2019, residential home sales in Rhode Island have seen a price increase of 47.3% for single-family homes, 56.8% for condominiums, and 78.7% for multifamily homes.GET THE LATEST BREAKING NEWS HERE — SIGN UP FOR GOLOCAL FREE DAILY EBLAST

On average, it is an increase of more than 50%, and the top realtors expect prices to continue to climb.

Josh Culliun of Mott & Chace Sotheby’s International expects prices to continue to climb during the remainder of 2023 and into the future.

Interest rates are making homes unaffordable for many first-time homebuyers, but a major cut may push home prices significantly higher.

“A major cut in interest rates could be catastrophic too. Values continue up, and that’ll be challenging on many levels for people — affordability becomes a massive issue as it is already kind of teetering,” said Cullion.

“On the one hand, it’s safe to say that the majority of homeowners have seen a significant increase in home equity in recent years, but on the other hand, that accumulation of wealth is hard to attain for those struggling to buy a home in this competitive market,” said Bryant Da Cruz, President of the RI Association of Realtors.

Data from State-Wide Multiple Listing Service, the listing information exchange owned and operated by the Association, shows that at $430,000, the median price of single-family home sales in the second quarter saw a 2.4% year-over-year increase from the prior year. In the other sectors of the residential market, the median price of multifamily home sales saw a 10.6% gain, to $470,000, and the e median sales price of condominiums saw the highest jump, rising 13.7% to $363,750.

Inventory, or the lack thereof, continues to be a major issue.  

“Today there are about just over 800 single-family houses for sale actively available at all different price points.  Multi-families and condos are hovering just over the 150-unit mark. That’s dismal in terms of the supply and demand the absorption rate,” said Cullion.

He urged that there is a major effort to expand the housing supply.

Cullion said, “There are plenty of historic properties that can be redeveloped and give a nod to the past and not butchering them. We see that at the Custom House, of course. There’s plenty of other existing buildings that could be retrofitted.”

Cullion sold more downtown condos in the past year than any other realtor including selling out the Custom House condos.

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• Median Price of Single Family Home in RI Was $384,000 in July – Up 16% Over 2020
• RI Home Prices Explode in Second Quarter – East Side Median Price Hits $682K, BI $1.28M
• RI Home Sales Down 6.9%, Median Price Jumps to $280K Highest Since 2007
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• Median Price For Single Family Home Tops $200K For First Time Since ‘08
• Out-of-Staters Buying Up RI, Median Price of a Single-Family Home Hits $390,000
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• Cost of Buying a Home Has Jumped 55% in a Year – As Interest Rates Rise, Median Price in RI $416K
• Median Price of a Single-Family Home in RI Drops to $390K, Interest Rates to Decline
• Record Breaking: Median Price of a Single-Family Home in RI Has Jumped to $445,000 in Past 30 Days
• RI Real Estate: Median Price $405K, Little Inventory and Average Mortgage Payment Up 53% in a Year
• Relief for Buyers – Median Price of a Single Family Home in RI Falls, But So Does Number of Sales
• RI’s Median Price for Single-Family Home Drops for Second Consecutive Month
• RECORD: Median Price of Single-Family Home in RI Now $420,000
• NEW RECORD: Median Price of Single-Family Home in RI Hits $442,750

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