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Community Corner

Rhode Island Housing Market Still Hot

As the temperature began to climb in June, so did the Rhode Island housing market, with an impressive number of homes sold statewide. In addition to the usual seasonal influx of activity, another contributing factor is buyers purchasing before interest rates rise even more coupled with aggressive pricing and moderate-to-low inventory levels.

Throughout New England in June, every state experienced double-digit sales growth year-over-year, according to the RE/MAX of New England Monthly Housing Report. Rhode Island once again had the largest year-over-year gains in total home transactions, up 32.2%, while median price rose 12.5%. For a state with one of the highest unemployment levels in the nation, this is remarkable. In taking a closer look at specific Rhode Island communities, we have seen a majority of areas mimic these market trends.

Many cities have seen aggressive growth in the numbers of homes sold.  Cranston had the most overall sales with an impressive jump in completed sales; in comparison to June 2012 there has been a 45% increase to 90 homes sold in June 2013.  Other areas that have seen this positive momentum include: Cumberland which showed a 31.7% increase, East Greenwich which rose  6%, and Coventry with 4.6% growth.

Find out what's happening in Coventrywith free, real-time updates from Patch.

The other dramatic change that has been seen statewide is the rise in home price.  Three areas in Rhode Island saw a 20%  increase in median price of homes sold: Coventry, Cranston and Newport.  Following closely behind was Cumberland with a 19.5% rise in price to $239,000 in June 2013.  Lastly, Both Barrington and Bristol saw slight increases as well.

June was a month full of growth for Rhode Island and the housing market has shown great strides towards recovery in recent months. But, it is essential to keep an eye on the market, recently mortgage rates have seen a dramatic increase – over a point in a matter of weeks – and this could result in decreased ability for potential buyers to afford a desired home.  Acting quickly to lock in rates before they rise is important for buyers to consider.  However, this is good news for homeowners looking to sell, typically a rise in mortgages corresponds with a rise in home prices. 

Find out what's happening in Coventrywith free, real-time updates from Patch.

Overall, great activity in the Ocean State and hopefully more to come!

Dan Breault is the Executive Vice President and Regional Director at RE/MAX of New England. For more information, visit www.remaxne.com.

 




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