RI Home Prices Continue To Soar; Up Double Digits Since 2019

PROVIDENCE, RI — Amid historically low mortgage rates and very low inventory on the market, Rhode Island's average home prices continue to soar. In August, the average price of a single-family home was up by double-digits compared to this time last year, up by 12.9 percent from August 2019, according to the Rhode Island Association of Realtors.

The median price for a single-family home in Rhode Island was $333,164 in August. Last month also saw an increase of 7.2 percent in sales, "worsening an already substantial shortage of homes on the market," the association reported. Compared to the same time last year, there were nearly half as many homes on the market, just 2,122 compared to 3,676 in August 2019.

"The activity in the housing market has been remarkable, particularly in light of what we’ve been going through with the pandemic this year," said Shannon Buss, the association's president. "We’re seeing so much pent-up demand and there doesn’t seem to be an end in sight. Homes put under contract in August that haven’t closed yet are up by 25 percent from a year ago. That’s an indication that demand isn’t waning. We desperately need a larger supply of homes for sale to accommodate the number of buyers out there."

Along with Rhode Islanders looking for a new home, out-of-state buyers also raised demand in the housing market, the association reported. Neighboring Massachusetts, Connecticut and New York were the top states for Rhode Island home buying, behind in-state buyers. Massachusetts went up 31.5 percent compared to 2019, while New York increased 48.9 percent. Connecticut, meanwhile, went down slightly from the same time last year.