Warwick, R.I. – May 6, 2025 –In the first quarter of the year, the number of single-family home sales in Rhode Island fell 3.2% year over year, despite a four-month upward trend that began in October 2024 and ran through January of this year. According to statistics from the Rhode Island Association of Realtors, the median sales price climbed to $465,000 from $440,000, a 5.7% increase.

“With all the economic uncertainty around us, many buyers seem to be temporarily pumping the brakes on their home search.  However, the chance of rates falling any time soon seems very unlikely. Historically, mortgage rates are still below the 54-year average so playing the waiting game may not be the best decision.  The best time to buy a home was yesterday. The second-best time is today.  Our median price here in the Ocean State is only going to continue to rise in the foreseeable future. Considering that the National Association of Realtors estimates the median net worth of a homeowner to be $430,000 in 2025 compared to the median net worth of a renter at $10,000, buyers who are choosing to sit on the sidelines could be missing an opportunity to build wealth that could help insulate them from future economic uncertainty,” said Chris Whitten, President of the Rhode Island Association of Realtors.

In contrast to single-family home sales, closing activity in the condominium market rose by 12% in the first quarter, accompanied by a 14% gain in median price to $390,000. Particularly attractive to first-time buyers, empty nesters and single adults, condominiums are an attractive option to gain a foothold into home ownership.

High demand for multifamily homes also continued in quarter one, buoyed by the ability to provide strong rental income for investors and owners. Sales of multifamily homes in the first quarter increased by 5.2% and the median price grew to $570,000, a 12% annual increase from a year ago.

“Though we still have a long way to go to get to a balanced market, the good news is we’re seeing an increase in homes for sale and so far, interest rates are remaining stable. For those who want to build generational wealth, now could be the perfect time to jump back into the market. But, be sure to do so with a trusted Realtor by your side as navigating this spring market alone can be a bit of a challenge,” Whitten commented.