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Rhode Island home prices soared in July
Sales are down again, but the number of listings has increased slightly.
The inventory of available listings has increased slightly in Rhode Island, but sales are down and prices are way up.
Condos and multifamily homes saw double-digit year-over-year increases to the median price in July, according to a report the Rhode Island Association of Realtors released Tuesday. In the single-family market, the jump was less pronounced but still requires a leap of faith for prospective home buyers facing high mortgage rates and persistently low inventory.
| Market | Median sales price | Y-o-Y Change | Completed sales |
|---|---|---|---|
| Condo | $359,900 | 12.5% | ⬇27.8% |
| Single-family | $440,000 | 7.3% | ⬇28.7% |
| Multifamily | $500,000 | 11.1% | ⬇25.2% |
“Mortgage rates have been creeping up further this summer, which has slowed sales activity,” said Bryant Da Cruz, association president, said in a statement. “While that has increased the supply of available homes a little bit, we’re watching rates carefully as housing costs have been a main driver of the increase in inflation.”
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Let’s get in the time machine and compare last month’s number with the market back in July 2021:
| Market | Median sales price July 2021 | Change since July 2021 |
|---|---|---|
| Condo | $275,000 | 30.9% |
| Single-family | $384,000 | 14.6% |
| Multifamily | $370,000 | 35.1% |
Despite long-term mortgage rates that flirted with and are now dating 7%, homes in the state are spending less time on the market amid low inventory and increased competition as prospective home buyers in Massachusetts cross state lines in search of bargains.
| Market | No. of sales July 2023 | No. of sales July 2021 | Days on Market July 2023 | Days on Market July 2021 |
|---|---|---|---|---|
| Condo | 139 | 233 | 25 | 35 |
| Single-family | 670 | 1,072 | 25 | 28 |
| Multifamily | 128 | 248 | 18 | 29 |
“The housing market helps drive the economy, so it’s important that we’re able to keep sales moving,” Da Cruz said.
In a sign of hope, the number of single-family and condo listings is up since May, the height of the homebuying season, but not at the levels seen two years ago:
| Market | May 2023 | July 2023 | July 2021 |
|---|---|---|---|
| Condo | 253 | 292 | 387 |
| Single-family | 1,068 | 1,130 | 1,723 |
| Multifamily | 210 | 196 | 433 |
“Single-family home sales, which went under contract in July but scheduled to close after the month’s end, fell 19.9% from July 2022, indicating the sales slowdown will continue,” Da Cruz said.
More on Rhode Island
These were the Rhode Island communities with the top 10 increases in the median sales price:
| rank | Community | Median sale price July 2023 | % Change y-o-y | Number of sales |
|---|---|---|---|---|
| 1. | Block Island | $4,262,500 | 222.9% | 2 |
| 2. | Newport | $1,550,000 | 70.8% | 7 |
| 3. | West Greenwich | $739,000 | 42.1% | 5 |
| 4. | Narragansett | $825,000 | 36.4% | 16 |
| 5. | Glocester | $432,000 | 31.9% | 4 |
| 6. | Warren | $566,125 | 31.7% | 4 |
| 7. | Providence | $417,500 | 30.1% | 60 |
| 8. | East Providence | $430,000 | 25.6% | 34 |
| 9. | Smithfield | $522,500 | 20.1% | 8 |
| 10. | Hopkinton | $490,000 | 18.1% | 3 |
These were the communities with the top 10 declines in the median sales price:
| rank | Community | Median sale price July 2023 | % Change y-o-y | Number of sales |
|---|---|---|---|---|
| 1. | Charlestown | $367,500 | -42.6% | 3 |
| 2. | Exeter | $475,100 | -18.2% | 9 |
| 3. | Scituate | $439,950 | -16.2% | 8 |
| 4. | Richmond | $410,000 | -5.4% | 6 |
| 5. | Tiverton | $420,000 | -4.6% | 14 |
| 6. | Burrillville | $425,000 | -3.9% | 14 |
| 7. | Jamestown | $1,061,875 | -3.5% | 6 |
| 8. | Barrington | $689,000 | -1.7% | 27 |
| 9. | Cranston | $387,000 | -1.4% | 52 |
| 10. | West Warwick | $345,000 | -1.4% | 16 |
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