Warwick, R.I. – June 21, 2024 -- Today, the Rhode Island Association of Realtors reported that the median price of residential property sales in Rhode Island soared to new heights in May, with multifamily home sales leading the pack. Multifamily homes with up to four units saw a 23.9% increase from the median price of $440,000 realized just 12 months earlier. The median price of multifamily homes has increased 78.7% in the past four years, hitting a new record of $545,000 last month.

Largely driven by the well-financed investor market, the allure of solid rental income has pushed significant year-over-year increases in the median price of multifamily homes since 2020. The hike in prices has not deterred sales, however. Closed sales were up 25.2% from May 2023. The fevered sales volume is expected to continue as pending sales, an indicator of sales activity in the weeks ahead, rose 9.1% from May 2023.

“Real estate has always been a good long-term investment, and that’s never been more true than in the multifamily home market right now. Unlike stocks, a small initial investment – or down payment – enables you to make significant gains on the full value of your investment. And, with today’s strong demand for rentals which shows no signs of subsiding, a steady income is readily available,” said Sally Hersey, President of the Rhode Island Association of Realtors.

The single-family home market also saw an annual increase in May’s median sales price of 7.7%, though sales fell by 3.6% and pending sales dropped by 7 percent. May’s $460,000 median sale price was also the highest monthly median price to date.

May was the first time since last October that the single-family home market rose to a two-month supply of homes for sale, meaning that the pace of sales would have resulted in all homes being sold in two months if no new listings went on the market.

“In the wake of the current housing shortage, May’s gain in supply is welcome but keeping in mind that a balanced market typically has a five- to six-month supply, we’re keenly aware that we still have a long way to go. The Rhode Island Association of Realtors is thrilled that the vast majority of Speaker Shekarchi’s housing package passed this legislative session. As an association, we’ll continue our strong support for any bills that ease the housing crunch in the years ahead,” said Hersey.

In contrast to the single-family and multifamily home markets, the Realtor Association reported that the median price of condominium sales dropped 10.8 percent year-over-year while sales went up by 3.1%. Pending sales dropped 1.5%. Price swings are common in the condominium market as a number of sales from one development can easily skew the median sales price higher or lower.

Monthly housing data released by the Rhode Island Association of Realtors reflects all Realtor-assisted transactions marketed through the State-Wide Multiple Listing Service, a wholly owned subsidiary of the Association.