Warwick, R.I. – October 17, 2024 – The median price of single-family homes sold in September climbed 6.6% year-over-year, continuing a trend in Rhode Island that began in February 2017. The Rhode Island Association of Realtors reported sales statistics today showing that last month’s median sale price of $485,000 was $30,000 higher than September 2023.

Sales activity has shown signs of slowing down and though that would typically put some downward pressure on prices, they are expected to remain elevated due to the pent-up demand caused by the housing shortage. Inventory continues to creep upward - now at a 2.4-month supply - an improvement from a year ago but still critically low. Closed sales fell by three percent and pending sales, the most common indicator of future sales, also dropped by 2.2%.

“Each month since January 2022, pending sales have fallen compared to the previous year, a sign that housing affordability is not improving in Rhode Island. The median sales price of single-family homes has risen year-over-year every month since January 2017. We desperately need to build more housing,” said Sally Hersey, President of the Rhode Island Association of Realtors. 

The condominium market followed the same trends with September’s median sales price up 12.5%, reaching a record high at $427,450. The number of closed sales was down 5.3% from a year earlier.

The slowdown in sales is expected to continue in the months ahead as the number of sales put under contract but not closed by the end of September dropped by 8.4%. Falling sales have helped build inventory. The number of condominiums listed for sale increased 31% year-over-year.

The median sales price of multifamily homes skyrocketed to a record $595,000, 24.6% higher than that of September 2023. Closed sales fell by 12.6% from the previous year, though pending sales showed improvement in activity with an increase of four percent. The number of multifamily homes on the market rose 7.4% from September 2023.

“We haven’t yet seen much of an effect from the Federal Reserve’s September rate cut on Rhode Island’s housing market. Our main problem continues to be supply. The Realtor Association is committed to supporting all viable legislative initiatives that can help in that regard in the 2025 legislative session,” said Hersey.

Sales data is pulled from State-Wide Multiple Listing Service, a subsidiary of the Rhode Island Association of Realtors. The transaction system includes information about all Realtor-assisted sales.