Warwick, RI The Rhode Island Association of Realtors (RIAR) reported that February sales of single-family homes experienced the first year-over-year increase in over two years. Despite the 13% uptick in sales from February of last year, which followed a drop in mortgage rates, closing activity remained well below normal.

The annual increase in sales is unlikely to continue in the coming months, given a 13.4% drop in pending sales, or those contracts initiated but not closed before February 29^th. Along with last month’s increased sales, came a 4.9% decrease in the number of listings on the market compared to 12 months earlier. At the current pace of sales, a 1.3-month supply of homes for sale remains on the market, a clear indication of a strong sellers’ market and a slight decrease from January’s 1.4-month supply.

The inventory shortage continues to keep prices high. The median price of single-family homes last month was $440,000, a 14.6% increase from February 2023