What’s Happening In Rhode Island: Market Update

market update jess powers

 

Rhode Island Real Estate Market Update – July 2024

In the fast-paced world of real estate, where every decision can mean the difference between a dream home and a missed opportunity, staying ahead of market trends is imperative. That’s why I make sure to arm my clients with as much information as possible. With Rhode Island’s real estate market setting new records, here’s what you need to know to make informed decisions in this dynamic environment.

Overall, the market remains strong, with continued price appreciation and dynamic market activity. Here’s a detailed update based on the latest data from the Rhode Island Association of Realtors.

 

2023 Overview: Median Sale Price Increases

  • Single-Family Homes: The median sale price for single-family homes increased by 5.99%, rising from $401,000 in 2022 to $425,000 in 2023.
  • Condominiums: Condos experienced an 11.6% increase in median price, reaching $357,000 in 2023, up from $319,900 the previous year.
  • Multifamily Homes: The median price for multifamily homes surged by 11.9%, climbing to $470,000 in 2023 from $420,000 in 2022.

2024 Market Trends and Predictions

So far in 2024, we’ve observed these key trends:

Continued Price Appreciation

  • Single-Family Homes: The median price reached $494,000 in June 2024, an 11.6% increase from the previous year. See below form my projections regarding single family home prices.
  • Condominiums: The median price for condos for June was $352,500 which is actually a decrease from last year. Condos will likely experience minimal growth YTD.
  • Multifamily Homes: The median price peaked at $545,000 in May 2024, June numbers came in strong at $530,000. See below form my projections regarding multi family prices.

Inventory and Sales Dynamics

  • Inventory Growth: Inventory for single-family homes increased by 32% year-over-year, yet sales dropped by 19.1%, indicating a cooling in buyer activity amid high prices and mortgage rates.
  • Market Balance: The supply of single-family homes rose to 2.2 months in June 2024, the highest since October 2020, suggesting a gradual shift towards a more balanced market.
  • Sales Activity: While sales of single-family homes and condos have slowed, multifamily home sales increased by 17.9%, reflecting strong investor interest.

Market Outlook

Based on current trends and data from 2023, I think this is what we will see—meaning these are my median sale price predictions for 2024:

  • Single-Family Homes: Expected to increase by approximately 8%, potentially reaching $459,000.
  • Condominiums: Anticipated to see increased inventory and prices to hold steady with minimal growth around 2-3% the YTD median sale price for condos for 2023 was $357,000, so we may see that rise slightly. Note that in 2022 the median sale price was $319,900 so there was a significant increase.
  • Multifamily Homes: Forecasted to grow by 11.9%, potentially hitting $525,930.

These projections are based on the market’s performance so far in 2024 and the ongoing demand and inventory trends. Both buyers and sellers should consider these predictions when planning their real estate strategies–if you’re waiting to buy will what you can afford go up at the same rate? Meaning if you can afford $450k right now in today’s market will you be able to afford that same home next year with its increased price? It will no longer be $450k, it will likely be closer to $486k.

I want to point out that my Market Update video report in January was spot on in my projections for 2024. Head over to my YouTube page to check that out.

Key Advice for Buyers and Sellers

Buyers

The market remains competitive, particularly for multifamily homes. Prospective buyers should be prepared for quick decision-making and understand what is needed in order to craft a strategic and competitive offer, see my blog post on your options to consider when it comes to the inspection contingency. Inventory may continue to rise but if interest rates head into the mid 5’s as currently projected for 2025 we may see increased buyer demand which will invariably mean prices continue to go up.

Sellers

With prices continuing to rise, now might be an optimal time to sell. Increased inventory could mean more competition in the future, so acting sooner might be advantageous. Check out my Home Seller Video Series to understand the home selling process—planning ahead is the key to getting top dollar!

Looking for additional market info? The Rhode Island Association of Realtors’ press release page is a great resource!