According to the Rhode Island Association of Realtors, the median home price in the state for March 2023 was $395,000, up $10,000 from March 2022. The median price for a condominium in March 2023 was $319,950, an increase of $14,950 over a year earlier. Meanwhile, the median price of a multifamily home in March 2023 was $450,000 compared to $397,000 in March 2022.
Sales levels of single-family homes
In March 2023, only 577 single-family homes sold in Rhode Island, compared to 685 in March 2022. This 23.7% decrease and was the lowest number of home sales since March 2011. This is particularly troublesome for real estate agents as more homes sell in the spring.
Factors driving single-family home sales and prices
Real estate agents quickly note that factors driving home sales differ significantly from those in the early 2000s. Unemployment in the state is at 3.1%. Agents say there need to be more homes on the market to drive real estate sales. Additionally, some buyers are being priced out of the market as home prices continue to rise.
Sales of condominiums
Only 124 condominiums were sold in March 2023 compared to 160 in March 2022, representing a 29.14% decrease. As with home sales, this shift may be caused by a need for more availability.
Sales of multifamily buildings
Multifamily buildings were the only segment of Rhode Island real estate to see double-digit price growth. Apartment buildings stayed on the market for 35 days, an increase of 2% over March 2023. There were 135 buildings for sale, which is the same number that was available in March 2022.
Home prices continue to climb in Rhode Island, with very few buildings on the market. While the number of sales fell, real estate agents say that the state’s low unemployment rate and the fact that people have equity in their homes make this a very different market than it was 20 years ago.