Want the latest scoop on what’s happening in Rhode Island’s housing market? Here’s what you need to know now.

Housing Inventory is Slowly Rebounding

After months of limited listings, Rhode Island’s housing supply is finally showing signs of recovery. According to the Rhode Island Association of Realtors®:

• The number of single-family homes listed in April 2025 increased 28.6% year-over-year.

• This marks the largest inventory increase in the past six months.

• While inventory remains low overall, the trend is moving in the right direction.

Home Prices Continue to Climb, But More Modestly

We’re still seeing home values rise, but the pace has eased since earlier this year.

• In January 2025, RI saw a 10% year-over-year increase in home values (the highest so far this year).
• In May, prices rose 6% year-over-year for single-family homes.
• The median sale price has grown from $470,000 in January to $480,000 in May.

Something to Think About:

While we’re not seeing double-digit growth, prices are still appreciating—so waiting may cost you more.

Absorption Rate Improves But Still Signal a Seller’s Market

Let’s talk absorption rate (the time it would take to sell all current listings if no new homes came to market):

• A balanced market = ~6 months of housing supply.
• Current supply = 2.1 months, up from 1.6 months in May 2024.
• Fewer closed sales recently have helped inventory tick upward.

Something to Think About:

We’re still in a seller’s market, but momentum is shifting slightly toward balance.

Mortgage Rates Holding Steady Near 7%

Buyers continue to face interest rates around 7% for a 30-year fixed-rate mortgage. Based on recent economic indicators like the CPI and PPI, most experts do not expect the Fed to cut rates at the next meeting.

At Homes By Connect, we’re in daily conversation with local lenders to help you make the most informed financial decisions possible.

Katy’s Takeaway

Many of my clients have heard me say, “The best time to buy was yesterday…but the second best time is TODAY.”

When you’re house hunting, don’t focus only on sale price—focus on the monthly payment. If you can afford the payment now, don’t wait.

• Waiting for rates to drop could backfire: lower rates will attract more buyers.
• More buyers = higher competition and rising prices.
• Buying now locks in your home, and you can refinance later when rates improve.

Bottom Line:

When you’re house hunting, don’t focus only on sale price—focus on the monthly payment. If you can afford the payment now, don’t wait. You can refinance later when rates improve.

Whether you’re buying your first home, relocating, or exploring investment opportunities, I’d love to help you run the numbers and find a property you love—before everyone else jumps back in. Reach out today to start your home search with expert guidance and local insight.

Data Points provided by the Rhode Island Association of Realtors®.