Record-Low Inventory Keeps RI Real Estate Marking 'Searing Hot'

PROVIDENCE, RI — Anyone who is trying to buy a home in Rhode Island right now knows one thing: it's a seller's market. With record-low inventory and high demand, home prices just keep climbing, up 18 percent year-over-year, according to the latest data from the Rhode Island Association of Realtors.

In May, the median home price rise to $365,000, up 18 percent from the same time last year. A large factor in that figure is the dearth of available homes on the market, down to a fraction of what is usually seen this time of year.

Last month, just 863 single-family homes were for sale statewide. That's a staggering drop in available inventory of 64 percent compared to the year before and 76 percent from 2019, when there were more than 3,500 available homes on the market.

"The demand for Ocean State real estate remains searing hot," said Leann D’Ettore, President of the Rhode Island Association of Realtors. "Sellers are seeing multiple offers and all but the most qualified and prepared buyers are having a tough time getting into a home. We’re hopeful that as we come out of the pandemic and the economy continues to improve, we’ll see more people willing to put their home up for sale."

Even if more people are willing to sell, new construction will be needed to meet the demand, D'Ettore said.

While single-family homes tend to be in the spotlight, sales continue to heat up for sales of condominiums, as well. The median sale price jumped 43.7 percent to $350,000, with sales activity up by a third compared to May 2020.

Like with single-family houses, the number of condos for sale declined, as well, with just 280 available in May compared to 639 the same time last year.