Median home prices climb over 10% year-over-year, inventory edges up, and the seller’s-market grip may be loosening in the Ocean State.
Rhode Island’s home-market remains dynamic in late 2025, but the pace of change is shifting slightly — spotlighting key opportunities and considerations for buyers, sellers and real-estate professionals.
Strong price momentum
According to the latest data from Redfin, the median sale price across all home types in Rhode Island reached $569,700 in September 2025, representing a 10.8% increase year-over-year. Redfi
Inventory and competition: signs of easing
Inventory is showing early signs of growth, which is an important shift for a market that has for years been defined by ultra‐low supply. In September 2025, there were 3,522 homes for sale in Rhode Island — up 10.1% year-over-year. Redfin
Still, despite supply increasing, the months of supply remains at only two (2.0 months) — underscoring that while the market is loosening, it remains far from a buyer’s paradise. Redfin
Meanwhile, the percentage of homes selling above list price dropped to roughly 41.7% (down 7.7 percentage points year-over-year), pointing to fewer multiple offers and somewhat more negotiation room for buyers. Redfin
What’s shifting — and what’s not
Earlier in the year, market reports from the Real Estate Institute of Rhode Island and the Rhode Island Association of REALTORS® (RIAR) observed that while sellers still held the upper hand, “the imbalance between supply and demand is less extreme than earlier in the year” — implying a gradual move toward more balanced conditions. Real Estate Institute of Rhode Island
For Q1 2025, for example, RIAR reported a median sale price of $465,000, up 5.7% year-over-year, while single-family home sales volume dipped slightly. Rhode Island Association of REALTORS®
Implications for buyers and sellers
- For sellers: Strong prices remain a boon, but overpricing or waiting too long to list may reduce competitiveness as buyer urgency wanes slightly.
- For buyers: You still face a relatively tight market, but signs of cooling mean more time to tour, consider contingencies, negotiate, and potentially capture value — especially in non-coastal or less-“headline” towns.
- For investors: Coastal markets, especially in areas like Newport, are still high-demand, high-price; the shift in dynamics may favor more creative or niche plays (e.g., furnished rentals, multi-family, value-add).
Bottom line
The Rhode Island real-estate market remains decidedly seller-favourable, but the window of extreme competition is beginning to narrow. Buyers may now find a few more breathing room, and sellers should move with both optimism and strategy. At the Dowd Team, we’re watching these market shifts closely — helping our clients list at the right time, price for today’s market, and move with confidence. Whether you’re buying, selling, or investing, the next few months present an excellent opportunity to engage, plan and act.
Contact Connor Dowd at Keller Williams Realty for a complimentary consultation, local market analysis, or to discuss how these trends impact YOUR next move. (401) 864-4488 | Connor@DowdTeam.com | Connor.DowdTeam.com
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