Chart: RI home prices steadying after 27% post-bubble drop

Has Rhode Island’s housing bubble finally finished bursting?

While it’s impossible to say for sure, new data from the Federal Housing Finance Agency shows that after a six-year decrease that pushed Rhode Island’s home prices down 27%, the decline has stopped.

The FHFA all-transactions house price index for Rhode Island, which measures changes in the cost of single-family homes, soared by 151% from the fourth quarter of 1996 through the first quarter of 2006, when the bubble popped. The index then began to drop, falling 27% through the second quarter of 2012.

The new data released Tuesday, however, shows Rhode Island home prices have barely moved in the six quarters since then, bouncing around in a narrow range compared with their big swings over the prior decade and a half. Single-family house prices have thus steadied at nearly double their 1996 level:

RI FHFA All-Trans House Price Index 4Q2014

• Related: Why is it more expensive to live in Providence than in Boston? (May 16, 2011)

3 thoughts on “Chart: RI home prices steadying after 27% post-bubble drop

  1. The prices should be steady . Realtors are controlling the real estate prices and inventory by refusing to bring low offers to the sellers . They are working together and with the banks. It’s the RICO act but we don’t have an attorney general , so they are running wild .

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