Following a historic, record-setting year, the local real estate market is off to a quieter start in 2022, with the demand from buyers currently outweighing the supply of homes on the market. Let’s take a deeper dive into numbers to see how the industry has performed during the first quarter.

Through the first three months of the year, Rhode Island saw an over 10% decline in the number of new single family listings compared to the first quarter of 2021, and has now witnessed a nearly 24% drop in first quarter listings over just the past three years. This lack of inventory resulted in a more than 6% drop in single family sales year-over-year. However, buyer demand remained strong, with single family homes selling faster and for higher prices than ever before. This included an over 17% decrease in days on market, as well as a nearly 15% increase in average sales price, both all-time records for the opening quarter in Rhode Island.

The state’s condominium market experienced the same trends to an even more extreme. Sales fell by nearly 10% compared to the same time period last year, while the average condominium sales price jumped by over 18% to reach a new all-time high.
Comparatively, the multi-family market performed relatively well during the opening quarter. Year-over-year sales dipped by less than 6%, however the average sales price for multi-family homes surged by over 22%, reaching its highest mark ever recorded during an opening quarter.

As a result of rising prices, the luxury market in Rhode Island continued to grow. First quarter sales for single family homes over $1 million rose by almost 14%, setting a new all-time mark for the opening quarter of any year. As a reflection of high demand, the average days on market for luxury homes was nearly half what it was just a year ago, while the average sales price increased by more than five and a half percent.

The South Coast, Massachusetts area saw its number of new single family listings during the first quarter decrease for a third consecutive year, falling by more than 37% during that time. This contributed to an over 13% drop in first quarter single family sales, while the average sales price soared to its highest mark on record.

As we head into the spring, the pent up demand for homes is still heavily outweighing the current inventory on the market. With conditions rapidly changing and prices discovering new levels, we strongly advise reaching out to one of our knowledgeable, local real estate experts if you’ve been considering buying or selling. An RPL Realtor can assist you every step of the way, and will be happy to guide you throughout the entire process. We’re looking forward to warmer weather and sunny days ahead. Enjoy the spring, and as always, happy and successful house hunting!