Rhode Island’s Housing Market Continued to Improve in First Quarter

WARWICK, RI – Even with near record-breaking snow fall, Rhode Island’s housing market continued to improve in the first quarter. Sales activity among single family homes rose five percent year over year and the median sales price increased four percent to $202,500.  This is the first year that the first quarter median price of single family homes has topped $200,000 since 2008.  The number of foreclosure and short sales dropped 16 percent as the market strengthened, according to Rhode Island Association of Realtors data released today.

With six sales in the first three months of the year, Block Island saw the highest median sales price, at $1.225 million – two percent higher than the previous year.  East Greenwich achieved the strongest price appreciation with a 52 percent increase.

Sales in the multi-family home market, which depends heavily on investors, climbed 18 percent in the first quarter and median price rose ten percent to $153,000.  The first quarter, multi-family median price had dropped as low as $80,000 in 2009.  Newport’s multi-family market saw the highest median price at $423,500, an eight percent increase from the prior year.

Only the condominium market struggled in the first quarter.  The number of sales dropped six percent and the median price of condos sold from January through March fell to $190,000, from $195,000 twelve months earlier.  Strict financing rules have been preventing potential buyers from closing deals.

“Despite the rough winter, Rhode Island’s housing market continued to bounce back for the most part.  Sales and prices should only get stronger as our job market improves,” commented Bruce Lane, President of the Rhode Island Association of Realtors.  “The one thing that could affect Rhode Island’s housing recovery however, is the passage of new taxes proposed in the 2016 state budget.  The statewide tax on non-owner occupied homes included in the budget could be expanded or altered at any time and make it more difficult for each and every one of us to afford a home, and the tax on short term private home rentals is the last thing we need if we want to encourage homeownership and tourism. Those are two of our most significant economic drivers,” said Lane.

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