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Single-family home sales fell again in December, part of a downward trend that began in September as mortgage rates continued to rise to multi-decade levels.
New data released by the Rhode Island Real Estate Association shows that the number of single-family homes listed, for sale, and pending sale increased in December as interest rates remain well above the record lows reached in 2021. All of them show a decrease.
The 634 homes sold in December are down 41% compared to December 2021 deals.
The median home sale price is down slightly by $390,000 from $411,000 in November. Compared to a year ago, the median selling price is up 4%.
Data from mortgage lender Freddie Mac shows that mortgage rates will be significantly lower at around 3% by the end of 2021 compared to 6-6.5% at the end of 2022, doubling interest rates. I was.
Purchasing power:$400,000 is the median new selling price for homes in RI. What does it actually buy?
“We’re not surprised by the numbers,” said Bryant Da Cruz, president of the Rhode Island Real Estate Association. “We’re in a market that I believe is in a bit of a transition right now.”
Da Cruz said the market is likely to stabilize soon as inflation continues to fall, but more homes will need to hit the market to push prices down.
Over the past three months, the number of listings has been consistently declining, from 1,468 in October to 1,017 in December.
The condo market remained much the same, with sales in December dropping to 140 from 172 in October and 155 in November, and the median condo sales price rising slightly to $336,000,11 Over $330,000 in the month.
So how do you get into this market at $400,000, which is close to the median selling price? said they are trying to persuade sellers to lower prices in line with rising mortgage rates.
If you want to learn more about the state of the housing market, read our premium story about what $400,000 can buy in this market.
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