- Gross sales continued to slip within the final quarter of 2022
- The median promoting worth in 2022 continued to rise
- The variety of homes in the marketplace stays very low
As 2022 got here to an in depth, the true property market noticed a continued decline within the general variety of gross sales, whereas the median promoting costs remained very excessive regardless of decrease demand and rates of interest that doubled over the course of the yr.
Gross sales of all forms of homes, together with condos, single-family and multifamily, fell in 2022, because the median gross sales worth in all three classes continued to rise, up roughly 30% because the pandemic began, based on information from the Rhode Island Affiliation of Realtors.
“The celebs aligned to maintain stock low and housing prices excessive,” Rhode Island Affiliation of Realtors President Bryant Da Cruz wrote in a information launch.
The variety of single-family properties offered in Rhode Island noticed an preliminary drop in January 2022. Then, gross sales elevated via the summer time, however began to fall off once more in September. In December, 634 properties have been offered, in contrast with 1,082 in December 2021.
In all, there was a 17% lower within the variety of single-family homes offered in 2022, in contrast with 2021.
The development of fewer gross sales in Rhode Island — in all of 2022, within the fourth quarter, and in December — have been all a part of a nationwide development. Throughout the nation, December marked the eleventh consecutive month of reducing properties gross sales.
Pandemic worth will increase continued in 2022
Though actual property brokers say costs ought to begin to come down, they continued to maneuver up in 2022, albeit at a a lot slower tempo than earlier within the pandemic. In 2022, there was a ten% enhance within the median worth of a single-family house, compared with a 14% increase in 2021.
Between 2019 and 2022, the median price of a single-family home rose by 29%, from $285,000 to $402,000.
The median price increase has been steepest for multifamily homes, which jumped 36%, from $270,000 in 2019 to $420,000 in 2022.
The median price for the most affordable option for new homebuyers, condos, increased 27% since 2019, when it was $235,000, to $320,000 in 2022.
Will prices come down?$400K is the new median selling price of houses in RI. What does it actually buy?
Real estate agents say prices should come down with increased interest rates, but many sellers base their expectations on the market as it was a year ago, with fierce demand and houses selling well above asking price.
Mortgage rates started to rise in December 2021, up from historic lows near 2%, doubling to 4% in March 2022, and hitting 7% in November 2022 before going down to 6%, where they stand now, according to national mortgage data from lender Freddie Mac.
Houses spent fewer days on the market on average in 2022
While the median price has been going up, the amount of time units stay on the market has been falling. For single-family homes in 2018 and 2019, an average time on the market was about two months. In 2021 and 2022, that shrank to about one month, according to the data.
For condos, the pre-pandemic average was about two months on the market. In 2021, it was down to 43 days, and in 2022, just 31 days.
For multifamily homes, the average time on the market has come down from 49 days in 2019 to 30 days in 2022.
Looking to buy?The state may give first-time homebuyers $17,500 for their down payment
The number of listings, especially for condos and single-family homes, is still well below the rates of early 2020 and before the pandemic. A total of 2,389 single-family homes were listed in January 2020, a number that shrank to 1,214 in January 2021 and to 805 in January 2022.
Across the state, Warwick continued a trend of accounting for the most single-family home sales in 2022, with 1,102. Cranston had 846, while Providence had 763.
Providence had the highest number of residential units sold, including 692 multifamily houses, with total sales of 1,892, down from 2,313 in 2021.
Interested in reading more about the real estate market?
So what does $400,000, near the median selling price, get you in this market? It depends on location and amenities, but real estate agents said that one of the biggest things they are doing is trying to convince their sellers to lower their prices to match decreased demand and higher mortgage rates.
For a more in-depth look at the current state of the housing market, read our premium story about what $400,000 can buy in this market.
If you’re looking to buy, read our story about the $17,500 grants the state is giving to “first-time homebuyers” or our guide on what to know if you’re thinking about buying a house in this market.
If you’re looking to sell your house, read our story on what agents want you to know about selling in this market.
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