Rhode Island Housing Market Analysis - August 2024
The Rhode Island housing market in August 2024 presents a dizzying landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $512,600, reflecting a modest year-over-year (YoY) increase of 1.9%. Conversely, the Median List Price has decreased by 2.7% YoY, now at $523,000. This divergence suggests a potential shift in seller expectations or market dynamics.
Price Per Square Foot metrics indicate a robust appreciation in property values. The median Price Per Square Foot has surged by 7.9% YoY to $285, while the Median List Price per square foot has risen by 9.0% YoY to $291. These figures highlight a strong demand for housing on a per-square-foot basis, despite the overall decrease in list prices.
Sales activity shows a positive trend, with 1,084 Homes Sold in August 2024, marking a 6.2% increase YoY. However, Pending Sales have declined significantly by 12.7% YoY, totaling 1,000. This drop in Pending Sales could indicate a cooling off in buyer interest or delays in transaction completions.
New Listings have decreased by 2.9% YoY, with 1,181 properties entering the market. Despite this reduction, inventory levels have risen by 16.3% YoY to 1,822 homes. The Months of Supply, a critical indicator of market balance, has increased by 20.0% YoY to 1.70 months. This rise in inventory and supply suggests that the market may be shifting towards a more balanced state, potentially easing the competitive pressure on buyers.
The Median Days on Market have increased by 7.0% YoY to 29 days, indicating that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio has decreased by 1.1% YoY to 101.1%, while the percentage of Homes Sold above list price has dropped by 5.8% YoY to 52.8%. These metrics suggest that while homes are still selling close to their list prices, the competitive bidding environment may be softening.
Price Drops have become more common, with 23.3% of listings experiencing a reduction, up by 4.8% YoY. Additionally, the percentage of homes going off the market within two weeks has decreased by 4.4% YoY to 54.7%, indicating a slight slowdown in the pace at which homes are being snapped up.
In summary, the Rhode Island housing market in August 2024 exhibits a mix of rising prices per square foot and increased inventory, coupled with a slowdown in Pending Sales and a longer time on market. These trends suggest a potential shift towards a more balanced market, providing opportunities for both buyers and sellers to navigate the evolving landscape.
