Warwick, R.I. – May 19, 2022 – The median sale price of single-family homes sold in Rhode Island in April was $420,000, a 20.3% gain from 12 months earlier and the first time the median sales price has risen to $400,000 or above. The increased prices, along with rising interest rates, has slowed sales for the third consecutive month. Sales data from the Rhode Island Association of Realtors pointed to a 12.5% decline in sales compared to April 2021. Homes put under contract in April but not closed by month’s end, were also down by 20.2%, an indication that continued restraint in sales activity in the months ahead is likely.

With just a 1.6% drop in listings from the previous year, April was the first month since October 2019 that the number of homes for sale had not declined year-over-year by double-digit amounts.

“I think we’re starting to see the correction begin. Unaffordable prices are sidelining prospective buyers. The plus side is that as demand is reduced, the market will rebalance. The negative side is that unfortunately, with the high price of rents as well, too many people are having trouble securing housing now,” said Agueda Del Borgo, president of the Rhode Island Association of Realtors.

Condominium sales showed more moderate movement. The median sales price rose 11.1% to $319,900 and sales declined 9.3%. Pending sales also dropped considerably, falling 22.9% from the prior year. The drop in pending sales had been much less significant throughout the first quarter, indicating that recent interest rate hikes are having a heavy impact on prospective buyers in the condominium sector which is often a starting point for first-time homebuyers. The number of condominiums available for sale continued to shrink. Condo inventory has fallen each month by at least 20% compared to the prior 12 months.

Multifamily home sales hit the highest median sales price in April, at $425,000, a 19.7% year-over-year gain. Activity also showed the sharpest decline in the multifamily home market. Completed sales fell 18% while properties put under contract but not closed in April fell 20.5% from the prior year.

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