The median sales price of single-family homes in Rhode Island declined in May, marking the first year-over-year drop for any month since January 2017, according to data from the Rhode Island Association of Realtors. The median price fell 2.5 percent from the previous May, settling at $500,000.

This decline represents a significant shift in a market that had experienced consistent price increases over the past several years. The association noted that closed sales for single-family homes decreased nearly 20 percent compared to May 2025, while properties under contract and expected to close after May also dropped by 3.5 percent. Inventory rose modestly by 2.5 percent as affordability concerns prompted some buyers to step back from the market.

Michael Pereira, president of the Rhode Island Association of Realtors, attributed the slowdown to inflation and broader economic uncertainty, which have caused prospective buyers to adopt a more cautious stance. "We’re seeing homes stay on the market a little longer and less sales activity than we did a year ago," Pereira said. He added that although the number of homes available for sale remains very low, the slight increase in inventory could signal a gradual move toward a more balanced market, offering active buyers increased negotiating leverage.

In contrast to the single-family sector, condominium prices in the state increased by 3.9 percent year-over-year, with a median sales price of $405,000 in May. However, sales fell by 5.8 percent, and pending sales declined by 19 percent, indicating softer demand within this segment. Multifamily homes saw a 1.7 percent rise in median price to $600,000, while sales volume dropped by 9 percent. The number of multifamily properties under contract held relatively steady, decreasing just 1.1 percent, suggesting a degree of stability for this category moving forward.

Pereira pointed to regional differences in sales trends nationwide, noting that while several areas including the South, West, and Midwest have experienced increased sales and improving affordability, the Northeast has seen a decline. “We’re hopeful that this month may be the beginning of the shift we need to see in Rhode Island to get closer to a balanced market,” he said, adding that the coming months will be critical to determining whether the recent changes signal a sustained trend.

The data reflect early signs of adjustment in Rhode Island’s housing market amid broader economic pressures, as declining prices and sales activity indicate shifting conditions that could impact buyers, sellers, and policy makers alike.