Warwick, R.I. – February 15, 2024 – The rate of decline in year-over-year home sales that plagued 2023 showed marked improvement in January, falling just 4.3% compared to the double-digit drops in sales activity recorded throughout each month last year. The data reflected all Realtor-assisted sales transacted through State-Wide Multiple Listing Service, a subsidiary of the Rhode Island Association of Realtors.

Pending sales, those waiting to close but not completed by the end of the month, also showed significant gains. Falling just .3%, pending sales remained stable year-over-year and the rate of decline in activity moderated from 2023, when they fell by double-digit percentages in all but one month.

The uptick in sales activity is intensifying the housing shortage which continues to put upward pressure on prices. The median sale price of single-family homes in January was $441,750, 12.9% higher than one year earlier.

“While home sales are still sluggish, they are getting less so. Recently, lower interest rates have helped ease affordability issues and allowed more people to jump back into the market. Unfortunately they still don’t have many options to choose from. The supply of homes for sale decreased throughout the fall and we need to see that trend reverse,” said Sally Hersey, President of the Rhode Island Association of Realtors.”

The Realtor data pointed to a 1.4-month supply of single-family homes for sale at the current rate of sales, down from a two-month supply in September. A five- to six-month supply typically signifies a healthy market, balanced between supply and demand.

While the rate of decline in year-over-year sales improved in the condominium market, the median price increased slightly to $325,000, up from $320,000 in January 2022. Eighty-nine condominiums sold in January compared to 94 one year earlier and pending sales rose 14.6%, an indication of increased closed transactions in the weeks ahead.

The multifamily home sector saw the slowest start to the year since 2015. Just 105 multifamily home sales closed in Rhode Island last month, 9.5% less than 12 months earlier. Contracts in the queue to close however, declined just 2.8%, a sign that completed closings should soon be on the rise. A $475,000 median price reflected an eight percent gain from the prior year.