Rhode Island's housing market ended 2024 with a significant 30.3% year-over-year increase in single-family home sales, the largest annual gain since 1999. The median price rose 10.1% to $470,000, although pending sales dropped 2.9%. Chris Whitten, President of the Rhode Island Association of Realtors, credited the surge to anticipated Federal Reserve rate cuts and a rebound from 2023's high mortgage rates.
Despite a 6.8% increase in inventory, the state remains a sellers' market, with just 1.6 months of supply at current sales rates. If mortgage rates stabilize due to the Fed stalling rate cuts, buyer demand may cool, potentially increasing inventory.
Key Market Trends:
- Condominiums:
- Sales rose 22.9%, but the median price dropped 4.2% to $345,000. Pending sales increased by 1.7%.
- Multifamily homes:
- Sales edged up 1.5%, with no change in pending sales, while the median price climbed 13.5% to $545,000.
Rhode Island remains a competitive market due to limited new construction and demand from out-of-state buyers, particularly from Massachusetts. Experts consider it one of the hottest U.S. housing markets for 2025.
Source Material: RI REALTORS
