PROVIDENCE, R.I. (WPRI) — If you’re looking for your dream home in Rhode Island, be prepared for an extremely competitive market.
That’s because the number of homes listed for sale does not meet the current demand, according to the Rhode Island Association of Realtors.
Agueda Del Borgo, president of the Rhode Island Association of Realtors, said the state’s housing inventory has significantly decreased over the past two years.
“The supply remains critically low and the number of homes for sale has been falling year-over-year for some time,” Del Borgo said.
Newly-released data reveals Rhode Island’s inventory of single-family homes fell from 2,328 listings to 888 over a two-year span, which is a 62% drop.
The lack of housing is, in turn, making the properties that are listed for sale much more expensive, according to Del Borgo.
The average price of a home in Rhode Island last month was $385,000, which is up nearly 15% from last year.
Del Borgo suggests prospective home buyers to cast a wide net and explore housing options that don’t necessarily check all the boxes.
Data reveals only 730 homes were sold last month in Rhode Island. Del Borgo believes that’s because there just isn’t enough affordable housing to go around.
“It’s critically important that Rhode Island puts measures in place that allow for the construction of more housing, free from the barriers that impede development now,” Del Borgo said. “We need places for our workforce to live.”
Mortgage rates are also at an all-time high. The average 30-year mortgage rose to 5.11%, according to mortgage buyer Freddie Mac. The last time it was higher was in 2010, when the average rate rose to 5.21%.