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Rhode Island home prices reach new heights
The median cost of a condo hit $363,750 in the second quarter, a nearly 14% increase.
Median sales prices for homes in Rhode Island have continued their meteoric ascent, with the condo market experiencing the biggest jump, according to an analysis released Thursday.
Single-family sales prices increased 2.4% year over year in the second quarter, rising to $430,000, the Rhode Island Association of Realtors announced in a news release. Sales were down 20.1%.
“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, association president.
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The condo market experienced the biggest price jump and a significant drop in sales: a 13.7% year-over-year increase to $363,750 in the second quarter and a 27.5% decrease in sales.
Multifamily homes in the Ocean State saw a 10.6% year-over-year increase in the median sales price to $470,000 but a 39.8% decrease in sales.
More on Rhode Island Real Estate
Looking at data over the past five years, multifamily homes have experienced the largest jump in prices:
| Housing type | % increase in sales price over 5 years |
|---|---|
| Single-family | 47.3% |
| Condo | 56.7% |
| Multifamily | 78.7% |
Even before the pandemic, there was a shortage of inventory.
“Rising mortgage rates have pushed some prospective buyers out of the market due to affordability issues, and inventory has tightened further by homeowners unwilling to give up current mortgages that have lower interest rates, Da Cruz said. “Competition from buyers from outside of Rhode Island has also further depleted the supply.”
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