RHODE ISLAND
Home Sales Down, Average Price Up
Home sales are down 7% year over year, with March 2024 at 760 compared to 817 last March. Sales are down across all categories.
- Single families: 566 (2023) | 535 (2024)
- Condominiums: 129 (2023) | 126 (2024)
- Multi-families: 122 (2023) | 99 (2024)
Average sale price increased 13.4% year-over-year, now at $542,110 compared to $478,008 in March 2023. Prices increased across all categories.
- Single families: $489,134 (2023) | $557,986 (2024)
- Condominiums: $417,535 (2023) | $458,324 (2024)
- Multi-families: $490,331 (2023) | $562,954 (2024)
Homes Listed For Sale:
The number of homes listed is down by 5.4% when compared to March 2023
- 2024: 1,116
- 2023: 1,180
- 2022: 1,653
Pending Home Sales:
The number of homes placed under contract is down by 2.3% when compared to March 2023.
- 2024: 893
- 2023: 914
- 2022: 1,270
Data provided by RI Statewide MLS then compared to the prior year.
What’s Happening in the Market?
The story of the spring real estate market is beginning to unfold with available inventory and mortgage rates as the main characters. In March, per Mortgage News Daily, mortgage rates hovered just above or below 7% throughout the month.
What does this mean for Buyers?
Unlike the other states we cover, Rhode Island’s inventory has remained lower than in previous years and even trended downward in March. There is still a considerable amount of serious buyers in the market, and clearly not enough supply to meet the demand in the market. Additionally, home sales are still slow to recover and home prices are not dropping dramatically anytime soon. Therefore, you should be ready to strike so that you don’t miss out on a home you want! It is also helpful to understand your financing options in the face of ever changing mortgage rates so you can find the solution that best fits your needs! Hopefully, we see inventory increase in Rhode Island as the spring rolls on, as this will give buyers more options and a potential lessening of competition in the market.
What does this mean for Sellers?
Sellers must price their homes competitively to get the most money for their home, especially if more inventory gets added to the market as we head further into spring! There is a considerable amount of competition in the market, so if you are a want-to-be-seller and you have delayed listing your home, the spring market is ready for you! We have already seen more and more of these sellers list their homes, particularly due to lifestyle changes, and as more and more list, more supply will be added to the market which will help satisfy the constant demand we are seeing.
What’s next?
We expect to see the spring real estate market continue to blossom in the coming months. However, even if inventory levels start to climb, the decision-making of both buyers and sellers will continue to be swayed by mortgage rates as they greatly impact affordability.