The latest existing home sales numbers are out. In August 2024, home prices in Rhode-Island were up 8.9% compared to last year, selling for a median price. On average, the number of homes sold was up 4.9% year over year and there were 1,070 homes sold in August this year, up 1,020 homes sold in August last year.
The lack of inventory has emerged as the main problem in the local housing market. In August 2024, there were 2,995 homes for sale in Rhode-Island, up 10.7% year over year. (according to Redfin)
Positive Existing Home Sales News For Rhode Island
However, there is positive news for those looking to own their own home, as prices are stabilizing and the median price in August was just over $500,000.
While the market is tight with a slight growth, a shift is on the horizon as more homes should become available for sale over the next decade with the baby boomer population moving towards retirement.
However, in the meantime, it’s crucial to build more homes for people’s immediate housing needs and as mortgage rates are dropping.
National Home Sales Report
August’s new listings inched up 1.6% over the previous month after decreasing 9.4% in July and 5.2% in June. Up 7.9% year over year, new listings have remained above 2023 levels in seven of eight months year to date according to RE/MAX news.
A Meanwhile, first-time homebuyers are active, and sellers are negotiating more, giving buyers an edge.
Latest Existing Home Sales – Inventory
Inventory continued to grow for the sixth consecutive month. It was up 2.4% from July and contributed to the 37.6% increase in homes for sale in August 2024 compared to August 2023. The average time a house is on the market increased to 29 days, up 7 days from the previous year.
New Listings
Phoenix, AZ experienced the biggest increase in new listings in August, jumping 25.0% from August 2023. RE/MAX Signature Broker/Owner Christy Walker said the influx of new listings put pressure on sellers, making the local market more favorable for buyers.
“I believe the slightly lower mortgage rates motivated home sellers who previously felt they were rate-locked. With an increase in homes to choose from, buyers have an advantage: negotiations.
Negotiations are more important than ever since many buyers can walk away if repairs or terms are not to their liking since they know there are many more homes coming on the market to choose from.”
Home Sales Down Overall
Meanwhile, home sales declined 3.3% from July across the 49 metro areas surveyed. Home sale transactions were also down 3.8% year over year – just the third month of 2024 thus far to trail 2023 according to RE/MAX news.https://news.remax.com/press-release/re-max-national-housing-report-for-august-2024
Median Sales Price of Existing Home Sales
U.S. home prices rose 0.5% in August, the biggest increase in 4 months and some are saying the prices may increase further as interest rates are reported to be coming down in September along with mortgage rates.
Housing Inventory
Throughout the United States, a months’ supply of inventory was 2.4 in August, up from 2.2 in July and 1.7 in August 2023. That is why it is taking a little longer to sell a home and giving buyers more choices for purchasing a home.
What’s An Agent To Do?
As a real estate agent, facing low inventory can be a challenge. Nonetheless, it is important to continue to stay on top of the game and explore new avenues to find potential homes for your clients.
With low inventory, it is crucial to be proactive and engage in every opportunity that presents itself. Whether it be reaching out to homeowners who may be considering selling or digging deeper into off-market properties, a real estate agent must be resourceful in their efforts.
Additionally, it is essential to stay knowledgeable about the local market and keep an eye on any new developments that may lead to potential listings. While low inventory may seem discouraging, it presents a unique opportunity to hone your skills and creativity in the field.
If you need help contact broker/owner Richard Zompa today!