Warwick, R.I. – August 19, 2024 – The Rhode Island Association of Realtors recently released home sales data that showed the median price of single-family homes once again broke records in July, topping out at $495,000, a 12.5% gain from 12 months earlier. The number of listings on the market also rose from last year, rising 16.2%, helping to spark a 21.2% increase in sales activity. Pending sales, a leading indicator of future sales activity, stabilized after 30 consecutive months of decline.

“We are beginning to see an increase in the number of homes listed for sale. And fortunately, anticipated rate cuts this fall should entice more homeowners who were previously unwilling to let go of their current low mortgage rates, to consider making a move. While this is good news, more new development remains the key to repairing our housing crisis,” said Sally Hersey, President of the Rhode Island Association of Realtors.

While inventory grew, the supply and demand imbalance remains more significant in Rhode Island than in most other areas of the country. July’s 2.2-month supply of homes for sale pales in comparison to the 4.1-month nationwide supply reported by the National Association of Realtors in June. The lack of single-family homes for sale resulted in listings going under contract in just 18 days last month, the shortest window on record since 1988, when record-keeping began.

Due to the tight supply of starter homes in the single-family home sector, sales of condominiums increased 44.6% over last year. At $395,000, the median price of those sales came in $100,000 less than that of single-family homes. A slight rise in pending sales indicates that closing activity should remain elevated in the weeks ahead.

In contrast, the median price of multifamily homes remained the highest of all three sectors at $550,000. Sales, which have not fallen since January, continued their ascent rising 10.9% more than July 2023. Barraged by investors, this sector of the market has boomed during the housing crisis, sparked by high rental demand and corresponding income. Incomplete sales expected to close this month, however, fell 11%, an indication that sales will likely slow in the weeks ahead.

“Overall, there are promising signs for our housing market. More inventory and lower interest rates should help to get the market moving. We’re hopeful that 2024’s housing market will be ending on an upswing,” said Hersey.