Chart: RI home prices steadying after 27% post-bubble dropFebruary 26th, 2014 at 11:35 am by Ted Nesi under Nesi's Notes, On the Main Site
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:
• Related: Why is it more expensive to live in Providence than in Boston? (May 16, 2011)