Over the years, our collective mindset has been to see the Spring Real Estate Market in RI and MA as a time of growth and opportunity. We have been conditioned to think of Spring as the ideal time to sell a home. Between the flowers in bloom, freshly cut yards and our desire to welcome the warmer weather with spring cleaning, our homes seem to awaken in the spring. For years, this season welcomed a significant bump in the inventory of homes for sale.

A “Complicated” 2024 Spring Real Estate Market

The 2024 Spring Real Estate Market could best be characterized as “complicated.” While February 2024 saw a rare uptick in the number of available homes in RI compared with the previous February, March saw different results; Home sales were down approximately 5% with pending sales down 7% , year-over-year, which means that April will remain slow as well. In Massachusetts, new listings decreased by 11.1% for single-family homes and 14.1% for condominiums year-over-year.

The good news is that if we focus on just the last few months heading into the spring, the number of homes for sale in both RI and MA is up slightly compared with the month of February, representing a slight spring market boost, albeit on a significantly smaller scale than in years past. For example, there were 822 homes for sale in RI in February and March saw 903 homes go on the market. In Massachusetts, March saw a 22.2% month-over-month increase in new listings and a 24.7% month-over-month increase in closed sales for single-family homes following a three-month decrease (the winter doldrums). 

The number of homes for sale in both RI and MA is up slightly compared with the month of February, representing a slight spring market boost.

I will be watching the next few months of the spring market, hoping to see more inventory hit the market as demand continues to outstrip supply. Anecdotally, I am listing homes at market value and hosting open houses to throngs of buyers followed by multiple offers. If properties are priced accurately, we are seeing them go under agreement in days.

Good News For Sellers: Single-Family Homes & Condominums

In continued good news for Sellers, due to the scarcity of homes for sale in RI, the median price of single-family homes sits at $440,000, representing an 11.4% increase compared to March 2023. The median sales price of condominiums increased 6.8% to $341,500 for the same period. And in Massachusetts, the median sale price for single-family homes increased by 8.9% to $609,900 and by 7.8% to $555,000 for condominiums from this time last year.

Buyers Continue to Watch Interest Rates

Buyers continue to watch the market with questions about interest rates. The Fed had previously suggested that we may see multiple drops in the interest rates this year. But the March Consumer Price Index showed a heating-up of the economy coupled with job growth acceleration and declining unemployment numbers. This caused the Fed to adjust their expectations to perhaps one rate decrease in the fall.

Katy’s Bottom Line

Sellers are still selling their homes. Buyers are still buying homes. Now more than ever, it is essential to have trusted professionals in your court, helping you navigate the challenges! Our seasoned Realtors® and trusted Affiliate Partners are here to answer all of your questions!

• Sellers are still selling their homes.

• Buyers are still buying homes.

• Reach out to Homes By Connect for more information on your specific market questions!

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