R
hode Island's housing market is experiencing a paradoxical shift, with the number of single-family homes on the market surging 29.2% year-over-year in March, yet sales plummeting by nearly 4%. This trend suggests that prospective buyers are hesitant to make purchases amidst the nation's economic uncertainty.

    Despite the influx of new listings, prices remain stubbornly high, with the median price of a single-family home reaching $480,000 – a 9.1% increase from March 2024. The state's housing inventory remains critically low, and homes are selling at an average pace of 36 days on the market.

    "This is a welcome development, but we're not out of the woods yet," said Chris Whitten, president of the Rhode Island Association of Realtors. "We need to see more homes coming onto the market to balance supply and demand."

    The multifamily home market, however, tells a different story. Sales rose 14.3% in March compared to last year, with pending sales also ticking up after five months of stagnation. Prices increased by 8.8% to $582,278, making multifamily homes an attractive investment option.

    Whitten notes that the volatility of the stock market has driven interest in multifamily properties, which are suitable for investors, multigenerational families, and first-time homeowners. The association will be monitoring how tariffs and supply chain disruptions affect development in the coming months.

    Condominium sales rose 3.2% year-over-year, but pending sales dropped by 21.6%, indicating slower sales activity ahead. The median price of condominiums sold last month decreased by 4.4% to $353,771.