Despite a 32 percent increase in the number of single-family homes on the market since June of last year, the median price of Rhode Island homes sold last month continued to rise, hitting a new high of $494,000. The figure represented an 11.6 percent increase in median price from 12 months earlier, the Rhode Island Association of Realtors reported this week.

Realtor data also showed a 19.1 percent decrease in sales from year-to-year. With just 675 single-family homes sold statewide last month, June experienced the lowest number of sales on record for the end of the spring selling season since the Rhode Island Association began record-keeping in 1998.

The increase in the number of listings on the market, coupled with the slow sales, caused the supply of homes to increase to 2.2 months before all listed properties would have sold if no new listings went on the market. June was the first time since October 2020 that the supply of homes rose to more than two months. A five- to six-month supply represents a market balanced between supply and demand.

On average, single-family homes for sale went under contract in just 23 days in June, which tied with May 2022 as the month with the shortest days on market on record.

“We still have a long way to go to correct our housing crisis, but the good news is, over the last few months we have started to see a shift toward a more balanced market. We’re hopeful that we will continue to see a slow but steady path to getting there,” said Sally Hersey, president of the Rhode Island Association of Realtors.

The number of sales under contract but not closed by the end of June also fell slightly, down 2.1 percent year-over-year. A forward-looking indicator of home sales based on contract signings, June’s pending sales indicate that sales may be starting to gain stability.

The condo market

Condominiums were a much more affordable option for prospective home buyers in June, with a median price of just $352,500. Sales fell 13.4 percent from June 2023, but pending sales increased by 3.5 percent. The number of condominiums on the Rhode Island market rose 28.6 percent, to 333.

The multi-family market

Multifamily homes continued to be a hot commodity last month, staying on the market only 21 days before going under contract, a 16.7 percent decline from June 2023. The sector was the only housing type to experience increased year-over-year sales in June, with a 17.9% increase. Pending sales, however, dropped 4.2 percent, foretelling a slight decline in closing activity in the weeks ahead.