Rhode Island’s housing market slowed in September as mortgage rates climbed above 7%. Home sales fell 11.7% year over year, while pending sales dropped 14.8%, according to data released by RI REALTORS on October 19.
The median sale price rose 0.75% to $534,000, showing that prices continued to increase even as fewer transactions moved forward.
Higher Rates Add Pressure on Buyers
RI REALTORS President Michael Pereira linked the sales decline to higher borrowing costs. He said the drop followed mortgage rates moving above 7%, adding to affordability challenges in a state where housing supply remains limited.
Higher mortgage rates increase monthly payments, potentially putting homeownership out of reach for some buyers. The association also noted that Rhode Island’s sales decline was nearly three times the combined decline reported across the Northeast.
Inventory Remains Limited
Rhode Island had 2.9 months of housing supply in September, unchanged from a year earlier and up slightly from 2.8 months in August. The association considers that roughly half the supply needed for a balanced market.
The slowdown was sharper in other property types. Condominium sales fell 28.2% year over year, with the median price reaching $441,015. Multifamily sales declined 13.9%, while the median price increased to $600,000.
Despite fewer sales, the limited supply continues to support prices. RI REALTORS said the state remains firmly in a seller’s market, though continued slowing could give buyers more negotiating power over time.
Discussion
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