Report: Rhode Island House Prices Are Soaring

WARWICK, RI — The Rhode Island Association of Realtors released June sales statistics today which portray a large increase in price over 2020 and a low inventory of homes on the market.

At $385,000, June’s median sales price of single-family homes represents a 24.6 percent gain since June of last year and a 5.5 percent gain from the previous month, the association said in a news release.

The number of days a home stayed on the market fell by 50 percent from June 2020 to just 27 days, one more indication of strong buyer demand and low inventory. The inventory of single-family was 31 percent lower in June than the number reported in 2020.

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Sales activity increased 19.4 percent compared to 12 months ago. But the association says a more telling indicator is the comparison to 2019, when closings were unaffected by the economic shutdown. June sales in 2021 represented a 1.9 percent increase compared to the same period two years earlier.

Among condominium sales, the median sales price increased 20 percent to $300,000, from $250,000 year-over-year. The days a condo stayed on the market fell to 40 from 60 days and the listings available for sale fell by 38.2 percent.

Multifamily homes also saw a sharp increase in price and sales.

Low interest rates coupled with low inventory are causing homes to sell more quickly and for more money than ever before, said Leann D’Ettore, president of the Rhode Island Association of Realtors.

"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. 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,”she said.

Properties selling for one million dollars or more grew by 242.32 percent over the year, the association said.