Warwick, R.I. – January 19, 2024 – In December, Rhode Island’s median sale price of single-family homes jumped 9.5% from 12 months earlier, more than twice the level of year-over-year appreciation seen at the end of 2022. Last fall’s high interest rates kept sales activity suppressed, while the continued shortfall of inventory kept prices elevated. The Rhode Island Association of Realtors reported a December median sale price of $427,000.

Single-family home sales activity fell 16.1% from December 2022, compared to a 41.4% decline from 2021 to 2022. Sales put under contract in December also declined, falling 5.6% year-over-year. However, pending sales had fallen a more severe 39.1% the prior year. The shrinking decline is an indication that the downhill trend in sales activity that has marred the housing market in recent years, may be coming to an end.

While the trend of declining sales and rising prices continued in the condominium market, December was the second consecutive month to see a year-over-year hike in pending sales. With the lowest median price of all residential property types - $360,000 – condominiums have become the most affordable option for many who are looking to gain access to home ownership at the lowest possible price point. The rise in contract signings in November and December bodes well for a rise in sales activity in the first quarter of 2024.

The multifamily home market once again marked the highest median price, and though the ability to offset the higher costs with rental income is enticing to many, competition in the investor-laden multifamily home market can be difficult for those without cash or excellent financing options. At $480,000, last month the median price of multifamily home sales rose 11.7% from 12 months earlier. Sales activity also rose by eight percent, bucking the trend seen in the single-family home and condominium sectors. Pending sales however, dropped 19.5% from the previous year indicating a lull in activity in that market in the first months of the New Year.

“We’re seeing some promising signs for 2024. Interest rates have recently fallen to the lowest level since May and there are indications that some homeowners are ready to make a move. We’ve also seen some new housing development and our Association is looking forward to collaborating with the General Assembly and housing advocates to help alleviate Rhode Island’s housing shortage in this legislative session,” said Sally Hersey, 2024 President of the Rhode Island Association of Realtors.