There is no easing of inventory shortages in the state’s housing market according to Rhode Island Assn. From the brokers: Nerig

Agoda del Borgo

Warwick, RI While it’s still rising, the rise in the median sale price of single-family homes in Rhode Island continued to moderate in August according to the Rhode Island Association of Realtors. While it was up more than 20% year-over-year earlier this year, August home sales averaged $405K, an increase of just 3.9% from August 2021.

Sales activity continued to decline for the seventh consecutive month, down 11.4% from the previous 12 months. The number of days the home remained on the market remained unchanged at 29, as did the 1.8-month inventory – which remained well below the balanced market inventory indicated by the six-month supply of homes available for sale.

“Despite the slightly increased inventory, there are still very few options. This, combined with the increase in mortgage rates, is reducing the number of buyers in the market. However, there may be options, even with higher prices, to secure stable housing payments from During home ownership and, in doing so, gain the opportunity to build wealth through equity.“They should be aware, if they are waiting for prices to drop dramatically,” said Aguida del Borgo, president of the Rhode Island Association of Realtors. Due to the housing shortage that still exists.”

Although condominiums sold in August saw a 15.6% increase in median price from 12 months earlier, at $313,338, it proved to be an affordable entry point for those struggling to own their homes. The number of days residential units remained on the market decreased to 27 from 32 in August 2021 and sales fell 17.7%.

At $424,500, the median price for multifamily homes continued to be the highest of the three sectors, driven in large part by demand from investors seeking to take advantage of rising rents. The number of days in the market decreased to 25 from August 29, 2021, decreased by 13.8% and closed sales decreased by 10.8%.

“In the past five years, the average cost of multi-family homes has increased by 93%, compared to 56% for single-family homes and 42% for condominiums. It was clearly seen as a good investment as long as rents continued to rise and outweighed costs of ownership. It will remain so,” Del Borgo commented.

The Rhode Island Association of Realtors releases sales data each month that is pulled from Realtor-assisted sales that are made through the association’s subsidiary, the statewide multiple listing service. The association provides annual statistics reports to avoid seasonal fluctuations. It cites the average, not the average of prices and sales, as high and low outliers can skew averages significantly. Market trend information can be found at RIRealtors.org.

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