A total of 404 single-family homes were sold in Rhode Island during February, down 8.8% from the 443 transactions recorded one year earlier.
According to data from the Rhode Island Association of Realtors, pending home sales declined from 762 in February 2024 to 685 last month. The median price of single-family homes of $455,500 marked a 3.5% year-over-year increase from the $440,000 price recorded one year earlier.
In contrast, sales in the multifamily home market rose by 7.9% – from 76 in February 2024 to 82 last month – although pending sales also fell by 6.8%. Multifamily homes continue to be among the priciest on the market, with the midpoint of all sales landing at $559,950, a 7.7% increase from $520,000 in the prior year.
Sales of condominiums grew 3.5% from 115 in February 2024 to 119 last month, pending sales fell 18.1%. The median price of condominiums sold in February was $400,000, 22% higher than the $328,000 median price recorded 12 months earlier.
“The upside to owning a multifamily has always been the great potential to obtain passive rental income and the ability to gain generational wealth,” said Chris Whitten, president of the Rhode Island Association of Realtors. “More importantly, in today’s housing crisis, multifamilies are also a very desirable option for multigenerational families or an owner-occupied buyer looking to reduce monthly costs through rental income. However, with a very limited supply of existing stock, climbing sale prices and costly regulatory mandates for landlords of rentals units here in Rhode Island, the benefits of owing a multifamily home are quickly eroding.”
Photo by Taber Andrew / Flickr Creative Commons
