Warwick, R.I. – April 28, 2022 – The $375,000 median price of single-family homes sold in Rhode Island from January through March represented a 13.7% increase from the same time last year. In a statement released today, the Rhode Island Association of Realtors also noted another sharp drop in year-over-year inventory in the first quarter.

At its lowest point of the quarter, inventory fell to a .84-month supply, meaning that no homes would be available for sale within a month if no new listings were put on the market. A market balanced between supply and demand typically has a six-month supply of homes available. The lack of inventory and related increase in prices is causing sales to wane. The number of single-family home closings fell by 6.3% from a year ago.

“As interest rates rise and homes become less affordable, we expect to see some buyers drop out of the market which would lessen demand. That’s a step in the right direction so this could be the year that a correction takes hold. However, Rhode Island had a housing shortage before the pandemic so our state still has work to do to ensure that accessible housing is available. More new development is needed,” said Agueda Del Borgo, President of the Rhode Island Association of Realtors.

Condominium sales saw even more appreciation in median price, rising 22% to $303,100, while sales activity fell 9.5%. Condos are often an alternative option for buyers looking to purchase at lower price points. While the supply of condos also remained critically low in the first quarter, hovering just above a one-month supply, the condo market did offer slightly more options for buyers than were available in the single-family home market.

At $400,000, the multifamily home sector’s median price was the highest of all categories and increased 19.4% from the first quarter of 2021. The median sales price of multifamily homes pre-pandemic was typically less than that of single-family homes but the allure of high rental income has pushed multifamily home prices higher. Inventory dropped to a low of a .8-month supply in February and sales fell 5.8% in the first quarter.

Pending sales, an indication of future closed sales in the weeks ahead, fell throughout the first quarter among all residential property types.

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