Rhode Island’s Real Estate Market Stayed Hot In June

PROVIDENCE, RI — Rhode Island's real estate market remained hot over the last month, though there were some gains in the number of houses on the market, the state's Association of Realtors said Wednesday.

"Low interest rates coupled with the historically low supply of homes available for sale are causing homes to sell more quickly and for more money than ever before," President Leann D’Ettore said. "There needs to be some relief in sight, particularly for first-time homebuyers who are finding nearly impossible to compete with buyers with top tier credit and cash."

As has been the case for months, Rhode Island saw double-digit increases in average price compared to the year before. In June, the average price for a single-family home was $385,000, up 24.6 percent from June 2020, and 5.5 percent higher than the month before.

One of the biggest issues in the Rhode Island real estate market over recent months has been extremely low inventory, which has pushed up prices and driven down the number of days listings stay on the market. Year-over-year, the average number of days on the market fell by 50 percent to just 27, which the association called "one more indication of a frenzied market characterized by strong buyer demand and insufficient inventory."

"We’re hopeful that the slight uptick we saw in inventory in June continues, as more people become comfortable with putting their homes on the market," D'Ettore continued.

After a major drop in May, inventory increased somewhat in June, the association said, though the number of houses on the market were still 31 percent lower than June 2020.

"The latest data shows that inventory would deplete in 1.7- months at June’s rate of sales, the highest level since November of last year," the association said. "In May, RI Realtors reported less than a one-month supply of single-family homes for sale, approximately five months short of the supply typically characterized by a balanced market."