Rhode Island Real Estate Market Summary for 2017
Click the thumbnail above for the full infographic.
The 2016 Rhode Island real estate market had already set records for numbers of transactions completed. Not since the boom years of 2004 through 2006 had we seen so many single-family homes close in the Ocean State. Nationally, the economy has started to pick up some steam and consumer confidence was starting to rise. It was unclear how this would translate into a 2017 RI real estate market. As with other economic indicators, Rhode Island tends to follow the Boston Massachusetts market. The prices and activity in the Boston and surrounding areas was absolutely red-hot. So, accordingly, 2017 started with a bang in Rhode Island.
By the end of the year, the Rhode Island real estate market had surpassed records that were set in 2016. A few hundred more single-family homes were sold in 2017 versus 2016. 11,363 to 11,181 to be exact. Sold home prices were also markedly higher. In fact this was the greatest differential between the 2017 and 2016 Rhode Island real estate market. The average sold price for a home in Rhode Island in 2016 was $303,603. In 2017, the average sold price was $326,937. An increase of 8% over one year!
One of the most telling signs of a real estate markets strength is the median sale price. What this means is that half of the homes were sold above this price and half of them were sold below this price. This is a great indicator for first-time buyers and their level of affordability. In 2016 the average median sold price of a home in Rhode Island was $239,600. In 2017 the average median sold price was $255,023. An increase of 6%. Mortgage rates and days on market were roughly equal between the two real estate market years.
How will the market fair in 2018? There are a lot of factors that we need to consider now that we didn’t have to a year ago. The massive tax law changes will certainly impact real estate moving forward. In my opinion not in an early positive way depending on where you live in the country, and of course what your income is.
It is still early to make that determination so we can only drive forward knowing what we know. We do not have a tremendous amount of inventory at this point, though we do expect the RI real estate market inventory to increase in the Spring. Mortgage rates are still historically low and the economy is still doing well.
So please feel free to check back here often for constant market updates and real estate news and views.