On December 21, 2023, data released by the Rhode Island Association of Realtors and its subsidiary, State-Wide Multiple Listing Service, highlighted sustained upward pressure on prices in Rhode Island during November due to pent-up demand. The median price of single-family homes sold in Rhode Island increased to $431,000 last month, signifying a 4.8% surge from $411,450 recorded a year earlier. According to information sourced from RIRealtors.org, Rhode Island climbed to the ninth position on Realtor.com's list of hottest U.S. markets in November, up from the tenth spot in October.
Despite a year-over-year decline in sales pace, November witnessed a comparatively minor reduction in the past five months. Closed sales activity dropped by 13.8% from November 2022, while the count of sales under contract but pending completion by November 30th declined by 14.7%. Earlier this year, the yearly sales decrease had reached 52.7% below the previous year's figures.
A constrained inventory and elevated mortgage rates have primarily affected the housing market. However, the available inventory of single-family homes for sale increased from 1.5 months in November 2022 to 1.9 months last month. Recent Federal Reserve reports have led numerous economists to predict an impending decrease in interest rates for the upcoming year. Lawrence Yun, Chief Economist for the National Association of Realtors, anticipates the 30-year fixed mortgage rate to average 6.3% in 2024.
Sally Hersey, 2024 president of the Rhode Island Association of Realtors, stated, "Recent mortgage rate declines below seven percent, coupled with slightly increased supply in sales data, provide some positive indications for 2024. The housing shortage remains a critical challenge, but with declining rates, we hope to see more homeowners willing to relinquish their current low mortgage rates and list their homes for sale. Potential sellers should also recognize that while significant price drops are not expected, the year-over-year price appreciation has notably moderated this year. For those contemplating selling, 2024 might present an opportune time."
In relation to other segments of the market, the median price for condominium sales climbed to $357,500 in November, an 8.3% increase from the same period a year earlier. Although condominium sales fell by 25.2%, pending sales, considered a key indicator of future market activity, increased by two percent, showing a favorable trend entering the New Year. Condominium pending sales had not surpassed the prior year's numbers since December 2021.
The multifamily home market witnessed a 23% surge in the median price, reaching $492,000, while sales activity recorded a mere 3.9% decline from November 2022, marking the smallest drop observed throughout the year. Pending sales decreased by 4.4%. All information is according to data published by RIRealtors.org.
For further local market statistics and to ascertain the current value of your home in today's market, please contact us via email at firstname.lastname@example.org