The housing market continued to slow in October according to data released last week by the Rhode Island Association of Realtors. Single-family sales fell 22.3 percent from October 2020 but …
The housing market continued to slow in October according to data released last week by the Rhode Island Association of Realtors. Single-family sales fell 22.3 percent from October 2020 but despite the slowdown in activity, the median price continued to climb, rising by 12.7 percent year-over-year.
As it has been for years, Warwick single-family home sales outpaced all other municipalities with a total of 117 homes sold for the month. This is a drop of 25 percent in sales from 157 sold in 2020. Nonetheless, the median home price in Warwick increased by 13.7 percent from $290,000 in October 2020 to $329,900 this October. A total of 973 single-family homes were sold statewide in October. The median price was $334,900.
“For the past 15 months, Rhode Island’s housing market has shattered records. Our housing market will likely show more tempered activity in 2022 but we still expect sales to remain strong. Our hope is that more sellers will be willing to list their homes if the frenzy of the market dies down and Covid becomes less of an issue. For many homeowners, the worry of finding a place to move to, is what is preventing them from listing their home for sale,” Agueda Del Borgo, President of the Rhode Island Association of Realtors, said in a statement.
Del Borgo further explained that Rhode Island has maintained less than a two-month supply of homes for sale all year. A supply of six months at the current rate of sale typically denotes a market balanced between supply and demand.
Similar trends held for the condominium sector. Sales fell by 10.9 percent year-over-year while the median price rose to $270,000, a 9.8 percent increase from October 2020. In contrast to the single-family home market however, pending sales rose 10.8 percent, an indication that frustrated buyers in the single-family home market may have turned their focus to condominiums.
The multifamily home market was the clear forerunner last month, with sales rising by 8.8 percent and the median price increasing 15.15 percent annually, to $380,000. An increase in pending sales of 11.2 percent also indicates that this sector of the market will remain strong in the months ahead. Throughout the year, the multifamily market held wide appeal to both investors and first-time homebuyers.
“Our housing shortage has created great demand for rentals. High rents and an abundance of potential tenants are great enticements for investing in multifamily properties. The fact that Rhode Island is a vacation destination also provides some buyers in tourist areas with great potential for vacation rental income,” said Del Borgo.
The number of listings was down in all sectors of the market. The conclusion of the mortgage forbearance moratorium and reduced worries about Covid, could help mitigate the shortage in the year ahead.
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