That’s also the trend in Charlestown
Rhode Island Association of REALTORS
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Rhode Island’s median single-family
home price rose 10 percent at the beginning of the second quarter while closing
activity began to constrict, falling nine percent compared to April of 2017.
The supply of homes for sale fell to 3190 last month, from 3569 12 months
earlier.
“There’s no doubt that the lack of
inventory is hindering sales but thankfully, the supply of homes on the market
has been rising since the beginning of the year, as we expected it would.
Unfortunately, we’re not where we need to be yet but we’re heading in the right
direction,” said Joe Luca, 2018 president of the Rhode Island Association of
Realtors.
The year started out with a
2.7-month supply of homes for sale which rose to a 3.5-month supply by last
month. A six-month supply is considered to be a housing market that is balanced
between supply and demand.
Sales of single-family homes in
process but not yet closed in April fell by 28 percent, a sign of weakening
sales in the months ahead.
EDITOR'S NOTE: Zillow sees the same trends in the Charlestown housing market. They characterize Charlestown housing as "Neutral" as to whether the buyer or the seller has the most leverage. See following graphic.
Condo Sales See Opposite Trends
The condominium sector saw opposite
trends in April with a decrease in the year-over-year median sales price of 12
percent and a dramatic 25 percent increase in sales activity. The number of
condominiums on the market fell six percent since April of 2017 and pending
sales fell two percent.
Trends in the condo market often trail behind those
seen in single-family home sales and the decrease in pending sales could be a
sign of slowing closing activity in the next few months.
Multifamily Property Sales Strong on
All Fronts
The multifamily property market saw
significant gains in both median price and sales activity. April’s median sales
price reached $229,500, a 19 percent rise from a year earlier and sales also
continued their upward trend, with an increase of seven percent. Unlike
the single-family home and condo markets, the supply of multifamily properties
on the market increased from a year ago, rising seven percent. Pending sales
decreased 16 percent.
“The lack of
competition in most of the marketplace is creating bidding wars and the
resulting rise in prices is impacting affordability for many ‘would-be’ buyers.
People still believe in the dream of home ownership but achieving the reality
is becoming more difficult. Student loan debt, new construction and more
programs for first-time buyers are all things that we need to be looking at if
we hope to help the market get back into balance,” said Luca.