Warwick, R.I. – January 30, 2024 – Data released today by the Rhode Island Association of Realtors relayed the severity of Rhode Island’s stalled housing market in 2023. The number of single-family homes sold in the state last year plummeted to the lowest level in a dozen years. 7409 homes were sold in 2023, a 22.5% drop from 2022, and a 33% decline from 2019, the year before the market surged due to the pandemic.

Fueled by low inventory and pent-up demand, last year’s median price of single-family homes rose to $425,000, a six percent increase from the prior year and a 49% increase since 2019.

The condominium and multifamily sectors also saw less sales activity and increased prices year-over-year. Condominiums sales dropped 21.7% last year while the median sales price jumped to $357,000, an 11.6% hike. Multifamily home sales decreased 28.2% while the median sales price of those transactions grew by 11.9% to $470,000.

When looking at all residential property sectors combined – single-family homes, condominiums, multifamily homes and vacant land – Rhode Island experienced a 23% decline in closed transactions from 2022. Across the state, luxury home sales scaled back to 15.7% of all residential sales, down from 19.3% in 2022 and 24% in 2021.

Predictably, coastal areas had the highest median prices. Newport County attracted the most luxury buyers, with 26.2% of all Newport County transactions selling for $1 million or more. By comparison, luxury buyers accounted for 13.7 percent of Bristol County’s residential sales and 12.8% in Washington County. Kent and Providence Counties, where the median price of residential sales was less than the state’s median price, saw the luxury market account for just 2.7 and 2.1% of the counties’ sales respectively.

Similar to last year, out-of-state buyers accounted for one in four of all residential sales, with most coming from Massachusetts, followed by Connecticut, New York, Florida and California.

“Last year was a difficult year for anyone interested in buying a new home. The extreme shortage of inventory coupled with high interest rates, left all but the most qualified out of the running in getting to the closing table. Thankfully, declining interest rates toward the end of the year helped mitigate the freefall in sales. As potential sellers get used to the new normal in rates in 2024, we’re hopeful that they will be more at ease about listing their house and using their equity gains to make a move,” said Sally Hersey, 2024 President of the Rhode Island Association of Realtors.