Want a single- or multifamily home in Rhode Island? Expect to pay more.

But the cost of a condo decreased, according to a new report. Is it just a blip, or are prices really plummeting?

The median sales price for a single-family home in the city of Providence was $407,300 in August, according to the Rhode Island Association of Realtors. That reflects a jump of 15.87 percent. Adobe Stock

If you are looking to buy a multifamily home in Rhode Island as a way to afford a mortgage — live in one, rent out the other — you will have to pay a lot more.

The median sales prices for a multifamily home in the state increased 15.6 percent year over year to $549,000 in August, according to a Sept. 20 report by the Rhode Island Association of Realtors. Sales also increased by 3.1 percent.

Meanwhile, the price of a single-family home rose, but not as dramatically: by 9 percent year over year to $490,563.

Sales data from the town of Coventry, R.I., offers a good snapshot of the market. There were 58 single-family home sales in August (up a whopping 45 percent), with a median sales price of $427,500 (a 12.8 percent jump).

These prices don’t include off-market home sales, which tend to be luxury properties.

The cost of a condo went down, however. The median sales price dipped 14.2 percent to $330,000, and sales were sluggish. They were down 7.8 percent compared with August 2023.

But prospective condo buyers shopping in Rhode Island should temper their expectations.

“Those trends have wavered each month,” the report noted. “Just one month prior, both the median price and closing activity of condominiums were up significantly from the previous year.”

Rhode Island has seen an increase in inventory, which remains far below what is needed to meet the demand.

“R.I. saw slight improvement in housing supply in August, but a significant housing shortage remains, ” Sally Hersey, association president, wrote in the release. “The recent reduction of 50 basis points in the funds rate by the Federal Reserve will give builders access to more affordable credit terms, and the housing legislation passed this year should eliminate some of the roadblocks that hindered development. Building more homes is the most significant factor in getting our housing market back in balance.”

A healthy market has at least a five-month supply of homes on the market. The state’s supply of single-family home listings in August was only 2.3 months, a “slight” increase.

HOUSING TYPE	MEDIAN SALES PRICE	% CHANGE YEAR OVER YEAR	MEDIAN NUMBER OF DAYS ON THE MARKET	% CHANGE IN NUMBER OF LISTINGS
Condo	$330,000	-14.17%	32	28.94%
Single-family	$490,563	9.01%	31	22.76%
Multifamily	$549,000	15.58%	24	31.37%

Source: Rhode Island Association of Realtors

Real estate agents — and frustrated home buyers — across the United States are hoping that declining mortgage rates will spur more reluctant sellers to list.

“Overall, we have encouraging signs to look forward to next year,” Hersey said. “Some homeowners who are reluctant to give up their current low mortgage rates may be more willing to sell as rates come down, and buyers should see better affordability, at least in terms of financing. Inadequate supply will remain the critical factor in home prices though. It will take some time, but we are hopeful that we now have some of the pieces of the puzzle to work through that.”