Warwick, R.I. – August 22, 2023 – July home sales data reported by the Rhode Island Association of Realtors recently showed a small increase in the supply of single-family homes for sale in Rhode Island and a 7.3% year-over-year gain in the median price, to $440,000. A decrease in single-family home sales of 27.8% contributed to the increase in supply.

July’s 1.7-month supply was the highest reached since October of last year.  A six-month supply is generally considered to be a market balanced between supply and demand.

“Mortgage rates have been creeping up further this summer which has slowed sales activity. While that has increased the supply of available homes a little bit, we’re watching rates carefully as housing costs have been a main driver of the increase in inflation. The housing market helps drive the economy so it’s important that we’re able to keep sales moving,” said Bryant Da Cruz, president of the Rhode Island Association of Realtors.
Single-family home sales which went under contract in July but scheduled to close after the month’s end, fell 19.9% from July 2022, indicating the sales slowdown will continue.

The median price of condominium sales rose to $359,900, a 12.5% increase from 12 months earlier, while sales activity fell 28.7%. Supply and demand are slightly more in balance in the condo market, with a two-month supply of properties for sale. This sector of the market showed only a 3.4% decline in pending sales, vastly better than the single-family home market’s near 20% drop.

At $500,000, the median price of multifamily home sales represented an 11.1% increase from 12 months earlier. Completed sales dropped by 25.2% and pending sales fell by 26.6%. With a 1.5-month supply of properties on the market, the investor-driven multifamily home sector had the least amount of inventory available.

“Multifamily homes have wide appeal for investors. It’s no secret that rents have skyrocketed and with mortgage rates rising, the supply of prospective tenants is growing,” commented Da Cruz.