Lindsay Pettinelli, Attorney at Providence Churchill and Banksyadded: “As an agent, you have to constantly come up with creative ways to make your offer stand out because sometimes simply offering the highest price isn’t enough to get the job done.”
Inventory levels are statistically among the lowest of any state altos research corp.Not surprisingly, some Rhode Island homebuyers are willing to pay whatever it takes to buy a home.
The 90-day average number of active single-family listings statewide as of May 17 was just 647, slightly above the all-time low of 568 active listings recorded a year ago but well below the May 2019 record 2,400 units are actively listed.
Although listings increased by nearly 2,000 units in 2019, local real estate professionals said tight inventory was an issue even then.
“We had inventory shortages two or three years before COVID hit, and then, of course, things went into a whole other stratosphere, and it felt like it wasn’t going anywhere,” said Kevin Fox of East Providence. It has remained there ever since. compass agent.
For buyers, tight inventory means frequent compromises in their search parameters.
“The great thing about Rhode Island is you can still get to the office in 20 minutes, but you can look at four different towns,” Dotson said. “We have very good density, which creates an open search. They might be able to see four or five houses at their price in four or five different towns, but they’re unlikely to see five in their preferred town. A house, not to mention a neighborhood.
While local real estate professionals are seeing many local first-time homebuyers, as well as buyers downsizing, they say demand from out of state is also strong. Agents in Providence noted they are seeing a lot of buyers coming from Boston.
“I’m seeing a lot of people coming here from the Boston area because they were priced out of the market and they realize, like a lot of people, they can work from home,” Fox said. “I’m also seeing some from the People from New York, and even some from California, when they come from a market like this, everything looks cheap here, so they snap up properties.
These out-of-town buyers are adding additional pressure to Rhode Island’s already tight housing inventory in the nation’s second-most densely populated state. While many out-of-town buyers consider homes to be a bargain compared to some of the pricier areas they come from, tight inventory and strong demand levels have meant Rhode Island home prices have risen significantly over the past few years.
In May 2019, the state’s 90-day average median list price was $399,000, according to Altos Research. As of May 17, 2024, this number has risen to $550,000.
In Providence, the median price has increased from $215,592 in May 2019 to $388,638 in May 2024.
“The Providence market has never been quiet,” Pettinelli said. “There has been no decline or lack of growth month over month since 2020. So our buyers are still looking at prices that continue to rise.”
In addition to rising list prices, Dotson said buyers know they will likely pay well above list price to successfully purchase a property.
Tight inventory and strong demand in the state have combined to create a fast-paced market that creates greater challenges for buyers. Data from Altos Research ranks the Providence metro area as the market with the shortest median length of stay nationwide, with a seven-day average length of stay of just 14 days.
“In truly desirable neighborhoods, the numbers are even lower,” Dotson said. “If you’re not here on the weekend to see the new homes that come on the market, then if you want to see something, you have to wait for the next round of homes to come up. Now, I tell my buyers they can’t go out for the weekend – If they want to buy something, they have to come here.
While agents are starting to see more listings on the market each week, they expect the coming months to be largely the same.
“This is going to be a very competitive market,” Fox said. “It’s going to be tough for buyers. We’re still going to be desperate for stock – it’s probably the lowest I’ve ever seen and I expect that to stay that way. I have a batch that I’m looking for in a hurry Buyers of buyers, I really feel for them right now.
