Rhode Island Housing Market Analysis - July 2024
The Rhode Island housing market in July 2024 presents a dynamic landscape with notable shifts in key metrics. The median sales price has experienced a decline, while other indicators such as the median list price and price per square foot have shown upward trends.
Price Trends
The median sales price in Rhode Island for July 2024 stands at $503,900, reflecting a year-over-year (YoY) decrease of 3.3%. Conversely, the median list price has risen to $540,400, marking a 4.8% increase YoY. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic factors.
Additionally, the median price per square foot has surged to $282, representing a significant 10.7% increase YoY. The median list price per square foot has also climbed to $302, up by 14.4% YoY. These increases indicate a robust demand for housing space, despite the overall decline in the median sales price.
Sales and Inventory
The number of homes sold in July 2024 reached 1,149, a substantial 21.6% increase YoY. Pending sales also saw an uptick, with 1,103 transactions pending, reflecting an 8.6% rise YoY. New listings have grown to 1,271, up by 18.3% YoY, while inventory levels have increased to 1,768, marking a 17.9% rise YoY. These figures suggest a more active market with increased buyer and seller participation.
The months of supply, a critical indicator of market balance, has decreased to 1.5 months, down by 10.0% YoY. This reduction indicates a tighter market, with homes selling more quickly relative to the available inventory.
Market Dynamics
The median days on market for homes in Rhode Island is now 22 days, showing a slight increase of 4.0% YoY. This suggests that while homes are still selling relatively quickly, there may be a slight cooling compared to the previous year.
The average sale to list ratio stands at 101.8%, a minor decrease of 0.8% YoY. This ratio indicates that, on average, homes are selling for slightly above their list price, although the margin has narrowed compared to last year. The percentage of homes sold above list price is 56.1%, down by 4.7% YoY, further indicating a slight shift in market dynamics.
Price Adjustments and Market Activity
The percentage of price drops has increased to 21.9%, up by 7.6% YoY. This rise in price adjustments suggests that sellers may be recalibrating their expectations in response to market conditions. Additionally, the percentage of homes going off the market within two weeks is 52.4%, a slight decrease of 1.7% YoY, indicating that while a significant portion of homes are still selling quickly, the pace has moderated slightly.
Overall, the Rhode Island housing market in July 2024 exhibits a mix of rising prices per square foot and increased sales activity, juxtaposed with a decline in the median sales price and a slight cooling in the speed of transactions. These trends reflect a dynamic market responding to various economic and demographic factors.
