Rhode Island home sales show signs of an upswing

Real Estate News

A gentle decline in sales comes as Bay State residents, hampered by prices that continue to rise, look south for housing.

December home sales in the Ocean State showed signs of an upswing, even as low inventory and increasing median sales prices continued to strain buyers.

Single-family home sales decreased by 16.1% year over year in December, the Rhode Island Association of Realtors reported Monday, but this reflects a significant departure from the 41.4% decrease reported in December 2022.

“We’re seeing some promising signs for 2024,” Sally Hersey, the association’s 2024 president, said in a press release. “Interest rates have recently fallen to the lowest level since May, and there are indications that some homeowners are ready to make a move.”

The gentle decline in sales comes as Bay State residents, hampered by prices that continue to rise, look south for housing.

But conditions aren’t too friendly for buyers in Rhode Island. Single-family home prices jumped 9.5% year over year from December 2022 to a median sales price of $427,000, the association reported.

Home inventory remained low — listings were down 9.8% year over year in December — which kept prices high, according to the report. Homes stayed on the market for just 34 days, a decrease of 5.6%. There was just 1.5 months of inventory as of Dec. 10, up slightly from the 1.3 months reported a year prior.

The trends are largely similar for condos and multifamily homes.

Condo sales decreased by nearly 15.7% year over year, even though pending sales were up by more than 3.4%, the association reported. The median sales price increased by 7.2%.

“With the lowest median price of all residential property types – $360,000 – condominiums have become the most affordable option for many who are looking to gain access to homeownership at the lowest possible price point,” the association reported. “The rise in contract signings in November and December bodes well for a rise in sales activity in the first quarter of 2024.”

Buyers eyeing multifamily homes are facing the highest costs, as median sales prices increased by 11.7% to $480,000 year over year in December.

Multifamily sales increased by 8% year over year, even though pending sales were down 19.5%, the association said, “indicating a lull in activity in that market in the first months of the New Year.”

Condo and multifamily inventory trends are bright spots for buyers. Condos spent 37 days on the market — an increase of 12.1% — and listings were up by 0.4%. Multifamily home listings increased by 18.2% year over year, although they were on the market for just 23 days, a decrease of 32.4%.

The association will collaborate with state legislators to increase housing, Hersey said in the release.

“We’ve also seen some new housing development and our association is looking forward to collaborating with the General Assembly and housing advocates to help alleviate Rhode Island’s housing shortage in this legislative session,” Hersey said.