RI Real Estate Market Is Seeing Some Significant Changes

RI Real Estate Market Is Seeing Some Significant Changes

The Rhode Island real estate market is seeing some significant changes.

First, the median price of a single-family home dropped to $475,000 in February. It had been consistently at the $500,000 level for much of the past year.

The February number may be a dip due to low inventory of an indication of some relief for buyers.

 

Supply

The supply of inventory decreased from 3.6 months to 2.3 months when compared to the same time period last year.  Additionally, the average days on market increased from 37 days in February 2025 to 44 days in February 2026.
 

Mott & Chace's report states that single-family home sale prices have stayed elevated year-over-year, likely due to low inventory.  A balanced market should have about 6 months of available inventory, while February 2026 had just above two months of inventory.  

 

Interest Rates

Josh Cullion of Mott & Chace Sotheby's International said on GoLocal Live that the decline in interest rates is providing some relief and incentive for buyers.

"The delta hasn't been that massive, you know, relative to where the rates were, you know, just last year. So, there's been a little bit more buying power with the adjustment, of course, but not a ton. You know, buyers are just more discerning and are being a bit more patient. And the environment for the seller is fantastic," said Cullion.

According to the  Mott & Chace market report, throughout February 2026, U.S. 30-year fixed mortgage rates remained close to the 6 percent level. Weekly data from Freddie Mac generally ranged from about 6.09% at the start of the month to roughly 5.98% by late February, marking the first brief dip below 6% since 2022 and placing rates near their lowest levels in several years. 

"While this modest improvement provided prospective buyers with somewhat better financing conditions compared with much of the past year, borrowing costs remained well above the historic lows of the early 2020s. As a result, affordability continued to be constrained, sustaining strong competition for attractively priced single-family homes," reports Mott & Chace

 

War Impact

Interest rates for home buyers have risen over the past ten days due to economic uncertainty caused by the war in Iran.

 

Out-of-State Buyers

One of the leading factors in Rhode Island's competitive real estate market is the impact of out-of-state buyers who continue to see Rhode Island as a bargain.

"You know, and you and I have talked about this offline before, and it still holds true. We're still a bargain compared to other markets and what those price points look like across the country, and we're, you know, you can just see it in their eyes, and they verbalize it as well, and it's still a bargain," said Cullion.

"Colloquially, you wouldn't we wouldn't think so. Prices have been higher than ever here in the state, but you know, in the buyer's eyes...why spend the money on the Cape, or Hamptons, or Long Island when you could be on the beautiful Rhode Island coastline and pay, you know, a fraction of the cost," added Cullion.