Warwick, R.I. – December 15, 2022 -- According to November home sales data recently released by the Rhode Island Association of Realtors, just 660 single-family homes sold in Rhode Island last month, compared to 1012 a year earlier, a 34.8% drop. Pending contracts - deals in progress but not closed as of the end of November - dropped 40% from 12 months earlier. The decline points to a rapidly slowing market heading into 2023.

While sales activity slowed, the median price of sales rose 9.7% year-over-year, to $411,450.

“Many people question how sales could slow like they have, yet prices continue to climb. It’s important to remember that though the median price is rising, that figure represents the mid-point cost of homes sold, not necessarily a change in the value of individual homes.  The National Association of Realtors released data this week that noted that first-time homebuyers have fallen to just 26% of the market from 34% a year ago. The increase in median price is in part due to more move-up homes selling than starter homes and of course, the lack of supply is also keeping prices elevated,” explained Bryant Da Cruz, president of the Rhode Island Association of Realtors.

The number of single-family homes on the market in November fell by 5.1% from November 2021, leading to a 1.5-month supply of homes for sale. A housing market balanced between supply and demand typically has a six-month supply.

Condominium sales followed suit with a 34.9% drop in sales activity in November and a 43.4% drop in pending sales. The median sales price rose to $330,000, a 12.4% year-over-year hike.

Likewise, multifamily home sales declined 36.6% and pending sales dropped by 46.5%. November’s median sales price rose by 3.9% to $400,000.

“Looking ahead to 2023, we expect interest rate hikes to eventually subside, which will help with some of the affordability issues buyers are facing. We must also find ways to increase our housing stock in Rhode Island, the shortage of which has now reached a critical level,” said Da Cruz.

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