As noted last month in Anthony’s Predictions for 2026, 2025 was “a year riddled with industry headlines about tariffs, the new Trump Administration, major trade and national economic changes that seems to have been met with incredible market resilience. Despite all that 2025 will go down in history as the pivot year where the Real Estate market began to head back in the right direction!” That resilience was evident in Rhode Island, where both sales activity and home prices moved higher over the course of the year.
Throughout 2025, the Rhode Island housing market continued to build on progress made in 2024, posting moderate gains in both sales and pricing in line with national trends. Buyer demand remained steady despite ongoing affordability challenges, while limited inventory continued to influence market conditions. Many homeowners holding onto favorable pandemic-era mortgage rates were slow to list, but life changes gradually brought more properties to market. As inventory began to loosen slightly, sellers were required to be more thoughtful with pricing. Buyers stayed active, adjusting to prevailing interest rates and price levels with a long-term mindset. As borrowing costs started to ease, homeownership continued to stand out for its stability, equity-building potential, and predictable monthly payments, reinforcing its appeal compared to renting.
This report breaks down sales, average prices, the number of active listings, and how many listings went under contract for 2025 compared to 2024 and discusses what is predicted to unfold in 2026.
2025 Real Estate Performance Highlights:
- The number of homes sold increased by 1.9%
- Average prices for closed sales increased by 5.8%
- The number of homes listed increased by 8.1%
- The number of homes placed under contract (pending) increased by 1%
- Inventory has been trending upward over the past three years, offering buyers more choice until it dropped in December 2025.
- 2026 is expected to rise again and bring inventory closer to historical norms, with home sales potentially rising up to 10% over 2025
Sales Rise by 1.9%
Home sales in Rhode Island rose from 11,042 in 2024 to 11,254 in 2025, an increase of 212 transactions year over year. Mortgage rates moved more favorably towards the end of the year, strengthening buyer confidence and driving activity. As fixed rates slipped into the low 6% range, more would-be sellers felt comfortable listing and moving on from their pandemic-era mortgage rates.
Sales performance by category was mixed:
- Single family sales up by 1.5%: 7,908 in 2024 to 7,820 in 2025
- Condo sales up by 5.7%: 1,810 in 2024 to 1,914 in 2025
- Multi-family sales dropped by -0.3%: 1,524 in 2024 to 1,520 in 2025
Below is a graph that illustrates home sales per year since 2000. After a few years of steep declines, 2025 increased slightly over 2024.
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Annual sales trends show steady improvement since 2023, with monthly sales battling the prior year with increases and decreases.
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Average Prices Increase by 5.8%
The statewide average home price in Rhode Island increased by $15,737 in 2025, reaching $625,947 compared to $591,422 in 2024. Despite affordability pressures, prices continued to move upward as constrained inventory fueled competition, frequently resulting in multiple-offer situations and higher final sale prices.
Price trends increased for all property types:
- Single family prices increased by 5.7%: $626,489 in 2024 to $661,903 in 2025
- Condo prices increased by 7.3%: $449,258 in 2024 to $482,200 in 2025
- Multi-family prices increased by 6.7%: $582,902 in 2024 to $621,968 in 2025
2025 marked the highest average prices Rhode Island has seen since 2000, and in many areas, record highs. As long as buyer demand continues to exceed available supply, prices are expected to remain well supported.
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Monthly pricing in 2025 exceeded 2024 levels in every month but October. The long-term price growth since the pandemic is especially clear when comparing trends from 2020 through 2025.
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Average prices increased across every county in Rhode Island, with gains ranging from 1.2% to 10.6%, underscoring that demand remains strong statewide, not only in urban or coastal communities.
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2025 Listings Rise Steadily
New listings rose by 8.1% in 2025, building on the rebound that began in 2024 after historically low levels in 2023 – the lowest seen since 1994. Many homeowners had delayed selling to preserve ultra-low mortgage rates, but recent modest declines in interest rates, combined with life changes, encouraged more listings in 2025. Total listings reached 17,015, still below the long-term annual average of roughly 20,000 homes, but the upward trend signals improving inventory and more options for buyers heading into 2026.
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Pending Sales Increased Nominally
2024 ended with an increase in listings for the first time since 2021, and 2025 continued to rise, but only by 1%, bringing 2025 in with 11,267 pending sales compared to 11,155 the previous year.
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Rhode Island Housing Inventory is Rising, but Still Tight
Inventory levels in 2025 rose consistently above 2024 levels until November, offering a positive signal most of the year for buyers. When compared to pre-2020 norms, when inventory regularly trended in the 6,000 range, the past few years have remained historically tight, with levels dipping as low as 2,200. Seasonal patterns persisted, with inventory peaking in spring and summer before declining in late fall and winter. As Anthony often notes, winter can be an advantageous time to sell due to reduced competition, while late fall tends to offer buyers more selection and negotiating leverage.
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Will the 2026 Real Estate Market Improve?
The housing market showed renewed strength as 2025 came to a close. According to the National Association of Realtors, home sales rose in December and ended the year slightly above 2024 levels as mortgage rates stabilized. Rhode Island reflected this trend, with late-year activity picking up across the state as buyer demand remained resilient despite affordability pressures.
Mortgage rates remained largely in the mid-6% to low-7% range throughout much of 2025, providing greater predictability than in recent years. Early in 2026, rates dipped below 6%, injecting new momentum into the Rhode Island market and encouraging buyers who had been waiting on the sidelines. This movement supports expectations that borrowing costs may continue to ease in the year ahead.
Although high prices continued to challenge buyers in 2025, price growth slowed toward the end of the year, helping bring better balance to the market. Buyers gained some relief while values remained strong due to sustained demand. Early 2026 data show a sharp increase in purchase applications, the highest since January 2023, indicating that market activity is accelerating.
Inventory has also continued to improve overall. While Rhode Island remains below national averages, buyers now have more options than they’ve had in recent years. Sellers must continue to price carefully, while buyers are entering 2026 with greater flexibility. As Anthony stated in his 2026 Predictions, “2025 was certainly an adjustment year that set the stage for a healthy 2026. We are on the other side of this down cycle and are on our way back to a steady and active real estate market in the years to come.”
The post Rhode Island 2025 Year in Review first appeared on Lamacchia Realty.