Rhode Island Housing Market: November 2024 Analysis

The Rhode Island housing market in November 2024 presents a complex landscape, characterized by a decline in Median Sales Prices and a rise in Price Per Square Foot. The Median Sales Price has decreased by 4.7% year-over-year, settling at $495,000. In contrast, the median Price Per Square Foot has surged by 10.7%, reaching $285. This divergence suggests a shift in buyer preferences towards smaller, more affordable properties, or possibly an increase in the value of smaller homes.

Despite the drop in sales prices, the market remains active, with 818 Homes Sold, marking a slight increase of 0.7% compared to the previous year. Pending Sales have also risen by 4.0%, indicating sustained buyer interest. However, New Listings have decreased by 0.9%, which could contribute to the upward pressure on Price Per Square Foot as inventory remains relatively tight.

Inventory levels have increased by 2.2% year-over-year, with 1,647 homes available, yet the Months of Supply remain unchanged at 2.0 months. This stability in supply suggests that while there are more homes on the market, they are being absorbed at a consistent rate, maintaining a balanced market environment.

The Median Days on Market have increased by 7.0%, now averaging 31 days. This indicates that homes are taking slightly longer to sell, which could be a reflection of the higher price points or changing buyer dynamics. The average sale to list ratio has decreased by 0.9%, now at 100.2%, suggesting that homes are selling closer to their list prices, with fewer bidding wars driving prices above asking.

The percentage of Homes Sold above list price has decreased by 3.3%, now at 47.6%. This decline, coupled with a slight reduction in Price Drops by 0.5%, indicates a market that is stabilizing, with sellers adjusting expectations to align more closely with market realities.

Interestingly, the percentage of homes going off the market within two weeks has increased by 1.8%, now at 47.3%. This suggests that while some homes are taking longer to sell, there is still a significant portion of the market that is moving quickly, likely those properties that are priced competitively or located in highly desirable areas.

Overall, the Rhode Island housing market in November 2024 reflects a period of adjustment, with declining sales prices but increasing Price Per Square Foot, indicating a nuanced market where buyers and sellers are recalibrating their strategies in response to evolving conditions.