Warwick, R.I. –January 16, 2025 – End-of-year sales of single-family homes soared according to December home sales data released by the Rhode Island of Realtors today. Rhode Island’s housing market saw a 30.3% rise in year-over-year home sales last month, the largest annual gain in sales since January 1999. Last month’s median price also increased, reaching $470,000, a 10.1% jump from December 2023.

Despite the upswing in sales activity, pending sales – or those under contract but not yet completed in December – fell by 2.9 percent.

“The anticipation of further rate cuts by the Federal Reserve seems to have lit a fire in our housing market in December. When compared to the end of 2023, when sales were particularly low due to mortgage rates climbing toward 8%, it’s easy to see why sales were so much higher this year,” explained Chris Whitten, 2025 President of the Rhode Island Association of Realtors.

The housing shortage is showing signs of correction throughout much of the country but Rhode Island remains in the grips of a sellers’ market. While the number of homes for sale rose 6.8% from the prior December, the sharp uptick in sales activity continued to drain supply. At the current rate of sales, if no new listings came on the market, inventory would be depleted in just 1.6 months.

“Due to the recent positive jobs report, the Fed is expected to stall its rate cuts so mortgage rates may not continue the downward trend that we anticipated last year. That could pull some potential buyers back out of the market, helping to build the supply of homes for sale,” said Whitten.

In other sectors of the market, condominium sales also rose 22.9%, but the median price fell 4.2% from December 2023, to $345,000. Pending sales rose slightly, up 1.7%.

Sales held relatively steady in the multifamily home market, rising just 1.5% from the prior year and number of pending sales under contract saw no change from 12 months earlier. The median price of $545,000 however, represented a 13.5% hike.

“Many keep asking why we’re not feeling a slight market cooling like most of the rest of the country. The two biggest factors include our severe drought of new construction units paired with those from out-of-state, particularly Massachusetts, looking at Rhode Island as a more affordable option. Many housing market experts have their eyes on RI as one of the nation’s hottest housing markets here in 2025,” Whitten said.

Sales data released by the Rhode Island Association of Realtors represent all Realtor-assisted sales transacted through its subsidiary, State-Wide Multiple Listing Service.