The Rhode Island housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 3.6% year-over-year, settling at $490,600. This decline contrasts with the Median List Price, which has increased by 2.0% to $510,600, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics reveal an upward trend, with the median Price Per Square Foot rising by 7.2% to $285, and the Median List Price per square foot increasing by 8.4% to $295. This suggests that while overall sales prices have dipped, the value attributed to each square foot of property has appreciated, possibly reflecting a demand for smaller, more efficiently priced homes.

Sales activity has slowed, with the number of Homes Sold dropping by 6.2% year-over-year to 603 units. Pending Sales have seen a more significant decline of 19.0%, totaling 680. New Listings have also decreased by 10.7%, amounting to 759, which could indicate a tightening market with fewer options for buyers.

Inventory levels have increased slightly by 2.3% to 1,271 homes, and the Months of Supply have risen by 20.0% to 2.10 months. This increase in supply, coupled with declining sales, suggests a shift towards a more balanced market, potentially easing the competitive pressure seen in previous years.

The Median Days on Market have increased by 5.0% to 42 days, indicating that homes are taking longer to sell. The average sale to list ratio has decreased slightly by 0.4% to 99.8%, and the percentage of Homes Sold above list price has dropped by 5.6% to 40.1%. These figures suggest a cooling in the market, with buyers gaining more negotiating power.

Price Drops have become more common, rising by 3.9% to 17.2%, reflecting sellers' adjustments to align with market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 2.4% to 50.7%, further indicating a slowdown in buyer urgency.

Overall, the Rhode Island housing market in February 2025 is characterized by a decrease in sales prices and activity, alongside an increase in inventory and supply. While the market shows signs of cooling, the rise in Price Per Square Foot suggests that demand for quality and efficient use of space remains strong.