Rhode Island Real Estate Market Update

Rhode Island Real Estate Market December 2023

The year ended with much optimism for a strong 2024. The median price of a single family home in Rhode Island was $427,000 and inventory was at one and a half months.  

Definitions explained.

The medium price of a home refers to the middle value in a list of home prices arranged in ascending or descending order. Unlike the average, which is calculated by summing up all the prices and dividing by the number of homes, the median is the middle point that separates the higher half from the lower half of the data set. In the context of real estate, the median home price provides a more representative measure than the average, as it is not influenced by extreme values that can skew the overall perception of the housing market. It offers a more accurate reflection of the typical cost of homes in a given area, making it a useful metric for assessing the affordability and overall market conditions.

Months of inventory, in real estate terms, refers to the number of months it would take to sell the current inventory of homes on the market, given the current sales pace. It is a key metric used to assess the balance between supply and demand in the housing market. The calculation is typically done by dividing the number of active listings by the average monthly number of closed sales. A higher number of months of inventory suggests a buyer's market, indicating more supply than demand, while a lower number suggests a seller's market, with higher demand than supply.

The Real Estate Institute of Rhode Island is a real estate school offering licensing classes, continuing education and general real estate studies.

www.InstituteRI.com