Prices rose and sales fell in

Newest data from the R.I. Association of Realtors reveals the continuing trend of high prices and low inventory

Home sales data recently released by the Rhode Island Association of Realtors relay a Q4 2022 median single-family home sales price of $400,000, which represented a 6.7% year-over-year gain, while the number of closed sales fell 32.7%. In the last three months of 2022, 2,094 homes sold, compared to 3,113 in the fourth quarter of 2021.

The Q4 median price of multi-family homes sold from October through December rose 9.9%, to $423,000, from $385,000 12 months prior. Sales activity fell 44.6%.

Among condominium sales, the median sales price rose to $329,900 last quarter, from $285,000 in the fourth quarter of 2021, a 15.8% gain. Closed sales fell by 32.7%.

“While homeowners still saw posi- tive gains in median sales price toward the end of the year, the rate of appreciation definitely fell from what we saw in the first half of the year. Given the affordability issues exacerbated by rising interest rates, sellers have had to adjust their expectations,” said Bryant Da Cruz, president of the Rhode Island Association of Realtors.

2022, a pivotal year

2022 overall saw a 17.3% decrease in single-family home sales compared to 2021, and a 10.1% gain in the median price. At $401,926, last year’s median price was the first time Rhode Island’s annual median price topped $400,000.

Multi-family home sales declined 24.4% year-over-year, while the median sales price reached $420,000, a 15.1% gain. The multi-family home market has been particularly attractive to financially well-qualified and cash investors, helping to put this sector of the market out of reach for many first-time home buyers.

Condominium sales, another sec- tor traditionally popular with firsttime buyers due to generally lower price points, decreased 20.9% yearover-year. The median price of condos sold in 2022 rose 16.3%, to $319,900.

“Last year was a pivotal year for the housing market, as rising interest rates wreaked havoc on home affordability. In addition to that, rising inflation and a potential impending recession kept sellers in their current homes and buyers left with limited choices. The stars aligned to keep inventory low and housing costs high,” said Da Cruz.

Last year, R.I. Realtors transacted $6.9 billion in residential real estate sales and $7.1 billion in total sales and rentals, including commercial transactions. Those numbers dropped 12.7% and 12.4%, respectively, from 2021.

The data is pulled from transactions recorded in State-Wide Multiple Listing Service, the listing information exchange system, owned and operated by the Rhode Island Association of Realtors.