It is no coincidence that Rhode Island experienced the largest year-over-year increase in home sales in New England for the third consecutive month in August. A combination of historically low interest rates, pent up demand, and appropriately priced properties have primed the Ocean State’s real estate market to kick into high gear.
According to the RE/MAX of New England August Monthly Housing Report, Rhode Island home sales were up 25.2% in August 2012 compared to August 2011. Year-over-year home sales were also up 32.4% in July and 24.2% in June.
To help form a better understanding of the real estate market in Rhode Island, we took a snap shot of the Patch communities of Johnston, Narragansett, Newport and South Kingstown.
In Johnston, more homes were sold in August than in any other month of 2012, where 29 transactions were closed, up from 28 in July. For the year, 181 homes have been sold in Johnston, for an average of almost 23 homes per month being sold.
Narragansett home sales were also strong in August, where 24 homes changed hands this August. With 168 home sales on the year, that is more than the monthly average of 21 homes sold per month.
In Newport, 28 transactions were recorded, rounding out a very strong summer in the City by the Sea. With 169 homes sold on the year, the top three months for home sales were June (37), July (26) and August (28).
The news is equally good in South Kingstown, where a robust summer was capped off by 29 homes sold in August. With this vacation destination in full swing in August, 46 homes were sold in July and 36 in June.
The good news in Rhode Island doesn’t just show up on paper; we are hearing it from our RE/MAX agents working in the area every day. For months, they tell me that many appropriately priced homes are once again receiving multiple offers. This comes as no surprise, as inventory across the entire state is dramatically lower.
Last August, there were about 9,000 properties for sale in Rhode Island. At the close of August, there were just over 6,700. Pending home sales are also up 40% year-over-year, which means more buyers, sellers and agents are working together to reach closing.
Challenges do remain, particularly with the rate of unemployed and under-employed in Rhode Island.
But, change is certainly in the air!
So as you pull out your fall decorations, begin to rake leaves, and (dare I say) start to get a jump on your holiday shopping, remember that along with the changing of the seasons, the real estate market is also changing: it is getting a little bit stronger with each passing day.
Dan Breault is the Executive Vice President and Regional Director at RE/MAX of New England. For more information, visit www.REMAX-NewEngland.com