Rhode Island housing market

Is it a buyer’s or seller’s market in Rhode Island?

It is considered a seller’s market right now. Housing inventory is up since last year, which means supply is less constrained. Mortgage rates are 6.8%, making the average house payment $3,803, which is $433 higher than a year before.

Total months of housing supply available for sale is 1.9 months, up 35.7% from 1.4 month(s) in September 2023.

Months of Supply

The Months of Supply housing metric is an estimate of how long it would take to sell all the homes for sale relative to the number of homes sold each month. Historically, 5 to 6 months is the average. You may also hear this metric referred to as the "absorption rate."

Lower months of housing supply typically signal a seller’s market whereas when months of supply is greater than 6 months typically signal a buyer’s market.

Sales to Listing Ratio

Sales to Listing Ratios are an indicator of supply and demand. It is all the completed sales in the past month divided by the total number of active listings.

In a balanced real estate market, the total number of home sales to active listings ratio is between 0.12 and 0.2 while markets with a ratio higher than 0.2 favors seller’s, as homes are selling fast and there is limited inventory, while markets below 0.12 favor home buyers because there is a larger supply of homes to purchase.

Selling a house in Rhode Island

Home values have increased by 9.2% since last year, and the number of days it takes to sell a home has increased from 24 days in September 2023 to 28 days in September 2024.

The best time to sell your home in Rhode Island is in June, when homes sell fastest and for the most money.

Sellers typically pay the commission of both the listing and buyer’s agents, which typically total 5-6% of the home sale price. That’s $30,810 paid in commission to the real estate agents. You’d also need to factor in closing costs, plus other fees and your mortgage payoff amount, to calculate the net proceeds from your home sale.

Buying a house in Rhode Island

Homes in Rhode Island have a median price of $513,500, which means you’ll need $51,350 for a 10% down payment. Housing costs have increased 9.2% in the past year. When you’re several months out and have your down payment saved, make sure to get pre-approved for a mortgage and find a real estate agent.

Home values are only one part of the home affordability equation. When buying a house in Rhode Island, don’t forget to also account for closing costs, which are typically 3-4% of the home cost. In addition to a down payment of $51,350 you should have $20,540 as well as budget for cash reserves, moving expenses and ongoing homeownership costs for home maintenance and repairs or HOA fees.

Rhode Island home values are 4.1% more expensive than New Hampshire and 16.2% more expensive than the national median home value.

Rhode Island housing market FAQs

• Are Rhode Island home prices dropping or rising?

  Home prices in Rhode Island are rising overall. Median home prices are up 9.2% since September 2023 and up 27.2% in the past 3 years.

• Is Rhode Island a seller’s market in September 2024?

  The Rhode Island housing market is a seller’s market. Homes in Rhode Island stayed on the market for 28 days in September 2024.

• Is Rhode Island a buyer’s market in September 2024?

  The Rhode Island housing market is is not a buyer’s market, it’s considered a seller’s market. Homes in Rhode Island stayed on the market for 28 days in September 2024, slower than 24 days a year prior.

• When is the best time to buy a house in Rhode Island?

  The best time to buy a house in Rhode Island is in January when homes sell for 99.8% of the list price.

• When is the best time to sell a house in Rhode Island?

  The best time to sell a house in Rhode Island is in June when homes sell for 102.3% of the list price and go pending in 19 days.