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)