In October, single-family home sales in the Ocean State dropped 6.6% from 12 months earlier and pending sales, a strong indicator of sales activity ahead, dropped 11.4%. The sales data, released by the Rhode Island Association of Realtors showed supply remained unchanged. Based on October’s rate of sales, the current housing inventory would be exhausted in just 2.8 months without any new homes coming onto the market. At $505,000, October’s median sales price rose 4.1% year-over-year.

“We were in a holding pattern in October. The government shutdown delayed some closings so we could see sales rebound towards the end of the year. But, with economic uncertainty brewing, prospective buyers are more tentative than ever. The situation is particularly hard for first-time buyers, who now make up only 24% of the buying market,” said Michael Pereira, President of the Rhode Island Association of Realtors.

Condominium sales fell 20.0% from October 2024. Those under contract but not closed by month’s end were up 3.3%. An attractive option for first-time buyers and empty nesters due to their lower price point, the median sales price rose 10.6% last month to $392,500.

The multifamily home sector also saw diminishing sales, with a 17.5% drop in closing activity compared to the prior year. Pending sales fell 6.2%. The lull in activity did not impede rising prices however, which rose 7.1% to hit a new high of $600,000.

“Neither inventory nor mortgage rates have changed substantially recently, but prices continue to rise, though the rate of appreciation is beginning to moderate, said Pereira. “While economic factors are fluctuating, one thing remains constant – Rhode Island’s housing supply is inadequate. Rehabbing old properties and building new homes is the one certain way we have of eliminating the barricades so many would-be homeowners are now facing.”