Warwick, R.I. – September 20, 2024 – The median price of single-family homes sold last month in Rhode Island rose 9% year-over-year to $490,563 according to a report released today by the Rhode Island Association of Realtors. Sales activity also increased from August 2023, rising 10.7%.
The months’ supply of homes on the market at August’s rate of sales grew slightly to 2.3 months. While still far below the five- to six-month supply of a balanced market, Rhode Island’s supply of single-family homes for sale increased from the 1.8-month supply of August 2023.
At $549,000, the median price of multifamily homes saw an annual increase of 15.6%. Though sales saw a 3.1% gain since August 2023, the rate of increase in sales activity in the multifamily home market has slowed considerably in recent months.
“R.I. saw slight improvement in housing supply in August, but a significant housing shortage remains. The recent reduction of 50 basis points in the funds rate by the Federal Reserve will give builders access to more affordable credit terms and the housing legislation passed this year should eliminate some of the roadblocks that hindered development. Building more homes is the most significant factor in getting our housing market back in balance,” said Sally Hersey, president of the Rhode Island Association of Realtors.
In stark contrast to the trends of the single-family and multifamily home sectors, the median price of condominium sales in August fell 14.2% to $330,000 and closed sales slowed by 7.8% from the prior August. Those trends have wavered each month however. Just one month prior, both the median price and closing activity of condominiums were up significantly from the previous year.
“Overall, we have encouraging signs to look forward to next year. Some homeowners who are reluctant to give up their current low mortgage rates may be more willing to sell as rates come down and buyers should see better affordability, at least in terms of financing. Inadequate supply will remain the critical factor in home prices though. It will take some time, but we are hopeful that we now have some of the pieces of the puzzle to work through that,” said Hersey.
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According to the Real Estate Institute of Rhode Island the interest rate cuts just announced this should help ease some of the challenges home buyers and sellers have faced in buying and selling over the last year.
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