THE NUMBERS ARE IN!! And the market is STRONG!!
According to the latest data from the Rhode Island Association of Realtors… more single-family home sales were recorded last month than any other May since 1998!! Which also happens to be the same year that the Association began keeping monthly records.
This same data shows that single-family home sales were 5.9% higher last month than they were in May of 2016.
On top of the surge in sales, we have a downward trend in supply, with 22% fewer homes AVAILABLE from the same time period last year. In fact… with the exception of one month, the number of homes for sale has fallen each month since May of 2015, which is a leading factor in the tough market for buyers.
Homes are spending less time on the market, properties that are appropriately prices are seeing multi-offer situations (bidding wars) and buyers are experiencing severe frustration in the process as all of this is causing prices to climb.
Good news for sellers. Not-so good news for buyers.
The median price of single-family homes in Rhode Island now sits at $250,000, which represents a 4.6% increase from May of 2016. In fact… that’s the second highest monthly price since July of 2008.
Sales for Condominiums also saw an increase of 12.4% over the same time frame last year. That is combined with a 6.7% drop in available listings, which has had the effect of pushing the median sales price up from $199,900 to $205,000 from 2016.
But wait… there’s MORE!!
Sure single-family homes and condos saw solid growth in sales activity and median price… but the multi-family home market has SKYROCKETED!
Multi-family home sales rose 19.5% percent, the third consecutive month of double-digit growth. At the same time, the median sales price rose 10.6% percent to $199,000. This is a side effect of the supply of available multi-family properties falling month-over-month for the past 24 months.
This all translates to the same things I said earlier… “good news for sellers. Not-so good news for buyers.” Especially buyers on the lower end of the price spectrum.
On the plus side, interest rates are remaining low – even though there have been two rate increases from the Federal Reserve this year (with two more in the foreseeable future). But if we look at that in perspective… we are still seeing rates that are far lower than they were 10 years ago, which is helping to make homes more affordable.
Whether MONEY IS NO OBJECT… or if EVERY PENNY COUNTS… for more information on YOUR MARKET, or on a specific property, please reach me for REAL ESTATE in the OCEAN STATE!