Rhode Island house sales fell by nearly 7 percent in February compared to the previous year, due to a decline in housing inventory. The median house price increased over 6 percent to $231,000 in February, however there were only 554 single-family homes sold, down from 595 in February 2016. Housing inventory was down 20 percent compared to the previous year, and by mid-March there was only a 3.4 month supply of homes on the market, below the healthy balance of 6 months of supply. Similar trends were reported in Massachusetts, where house sales fell 11 percent in February while prices rose nearly 7 percent, and inventory was down nearly 35 percent.

1. 3/30/2017 R.I. house sales down 7% in Feb. as inventory declines ­ News ­ providencejournal.com ­ Providence, RI
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After a record-setting 2016, and strong sales in January,
Rhode Island house sales fell by nearly 7 percent in
February, a change attributed to the declining number of
houses for sale.
By Christine Dunn
Journal Staff Writer
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PROVIDENCE, R.I. — After a record-setting 2016, and strong sales in January,
Rhode Island house sales fell by nearly 7 percent in February, a change attributed
to the declining number of houses for sale.
In February, the median house price jumped by more than 6 percent, to
$231,000, but there were just 554 single-family houses sold, down 6.89 percent
from February 2016, when there were 595 sales.
Real-estate sales have been "hampered by declining inventory," the Rhode Island
Association of Realtors explained in its February sales report, scheduled for
release Wednesday. In February, house listings were down 20 percent, compared
with February 2016, and "with the exception of February 2016, inventory has
slipped every month for the past 26 months."
By mid-March, there was a 3.4-month supply of homes on the market, "giving
sellers a significant advantage," the association added. A six-month supply of
homes is considered to be the level that supports a "healthy" balance between
R.I. house sales down 7% in Feb. as inventory
declines
Wednesday
Posted Mar 29, 2017 at 12:01 AM

2. 3/30/2017 R.I. house sales down 7% in Feb. as inventory declines ­ News ­ providencejournal.com ­ Providence, RI
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supply and demand.
James DeRentis, an agent with Residential Properties Ltd., said multiple offers
are now routine for houses in good shape "in any neighborhood where you've
got an attractive price point."
On Tuesday, he said, he went to Rumford to look at a newly listed two-bedroom
ranch; the first showing appointment was at 3:30 p.m. At 4 p.m., when he
arrived, "15 people were waiting to see it," DeRentis said. Attractive listings "are
gone in a matter of hours, not days," he added.
Even at the high end of the market, "inventory is the biggest problem right
now," said John Hodnett, principal broker/owner of Lila Delman Real Estate
International. Hodnett said he recently worked with buyers who can spend up to
$2 million and want to buy in South Kingstown or Narragansett. Four years ago,
there would have been 20 houses to show them, he said, but this year, there were
just 5.
Similar trends were reported Tuesday in Massachusetts. "Plummeting inventory
caused single-family closed sales to dip year-over-year in February, as prices
continued to rise," the Massachusetts Association of Realtors announced. In
Massachusetts, house sales fell by 11 percent in February, while the median
house price went up to $330,000, an increase of nearly 7 percent.
In Massachusetts, housing inventory was down by nearly 35 percent in
February, and a 2.3-month supply of single-family houses was available for sale,
the MAR added.
"We're at the lowest inventory we've seen since MAR began recording the data
in 2004," said MAR president Paul Yorkis.
In Rhode Island, single-family house sales were up by 21 percent in January, a
brisk start after 2016, which itself was a record year for real estate sales. Last
year, there were 11,038 single-family house sales in Rhode Island, up 12.4
percent from 2015, and 1,013 more than the previous record, set in 2004.
"The tough buying market is characterized by competition driven by low
inventory and challenges for first-time home buyers as prices outpace income
growth," Cheryl Young, a senior economist with Trulia, reported Tuesday.

3. 3/30/2017 R.I. house sales down 7% in Feb. as inventory declines ­ News ­ providencejournal.com ­ Providence, RI
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"It's basic economics. When there's a good deal of demand but supply is low,
prices go up," said RIAR president Brenda L. Marchwicki. "That's great news for
homeowners whose equity is rising, but it's not good for buyers who have
limited choices and stiff competition when they do find a home that they like."
— cdunn@providencejournal.com
(401) 277-7913
On Twitter: @ChristineMDunn