Rhode Island home sales booming

PROVIDENCE, R.I. (WJAR) — Rhode Island's real estate market is showing no signs of slowing down, as parts of the state are seeing a big boost in home sales.

Although many home prices are climbing with more buyers in the market, interest rates are still low, which makes a larger mortgage more affordable.

The Rhode Island Association of Realtors said Monday that sales of single-family homes were up more than 10 percent in June when compared to the same month a year ago, while median prices jumped more than 12 percent year over year.

The median price of $275,000 is the highest it's been since September 2007.

“People's confidence levels certainly is better than it was 10 years ago,” Cecile Cohen, a realtor, told NBC 10 News.

Realtors said second-home buyers are coming to the Ocean State from New York and Connecticut, with many of them eye-balling South County homes with a view.

The Rhode Island Association of Realtors said the three towns with the most sales gains in Washington County within a year include Westerly, South Kingstown and Narragansett. Westerly alone grew by 59 percent more homes sold from last summer.

The lowest include North Kingstown, Exeter and Hopkinton. Hopkinton sold 30 percent fewer homes this year compared to last year.

The growth in booming areas of the state helps the local economy, according to Cohen.

“Housing sales lead to furniture sales, lead to hardware sales, paint sales, plumbing fixtures, construction,” said Cohen.

Another perk includes lower interest rates, which make it a better time to buy, and most with 30-year mortgages that are close to 4-percent.

“The odds are the mortgage are going to keep slowly increasing,” said Cohen. “So, now is the time to do it. If you're looking for home, the houses are here."

With more buyers on the market though, it's possible sellers will have to turn down more offers.

Association President Brenda Marchwicki said prices are being driven by high demand and lack of inventory, and are not predicated on a speculative market fueled by subprime mortgages as they were in 2006 and 2007.

There were 3,888 houses for sale in Rhode Island in June, down from 4,662 in June 2016.

(The Associated Press contributed to this report.)