R.I. home sales slowed again in March as interest rates climbed, according to realtors group

PROVIDENCE – Single-family home sales in Rhode Island continued to be slow in March, and sales for the first quarter of 2026 fell by nearly 9 percent year over year as interest rates jumped and global economic tensions loomed large, according to the Rhode Island Realtors Association.

Sales in March were 5.3 percent below the total for the same time period last year, marking “the slowest activity in single-family home sales … since monthly record-keeping began in 2010,” the association said on Wednesday.

The median single-family home price, meanwhile, hit $514,250, the third-highest on record, behind June and September 2025.

The trend comes after single-family home sales in the Ocean State hit a 15-year low in February, driven in part by a record-breaking snowstorm that month and a fraught economic landscape.

Interest rates climbed back up in March, with rising oil prices and global instability brought on by the war in Iran.

“Bad weather, tariffs and economic uncertainty limited home sales in the first quarter. By March, increasing interest rates, stock market volatility and escalating global tensions kept buyers and sellers on the sidelines,” Michael Pereira, the association’s president, said in a statement. “At the same time, we still have a very low supply of homes for sale, roughly half the national average, which is keeping prices elevated.”

Spring is historically a busy time of year for the housing market, as factors such as warmer weather and school schedules drive interest and create competition for sellers.

But the slow start to 2026 may continue: “A 13.5 percent annual drop in pending sales also foretells a slower market heading into spring,” the realtors association said.

Condominium sales in the first quarter dropped 16.8 percent compared to 2025, and fell by 14 percent in March, according to data released by the association. The median price jumped by 14.5 percent to $405,000.

Multi-family home sales fell 3.6 percent in March compared to the same month last year, “and those under contract but not closed by the end of the month fell 14.2 percent, a sign of a slowdown in the weeks ahead,” the association said.

“Unlike the single-family home and condominium markets however, which both saw a decline in listings, last month the multifamily home market saw a 24.2 percent gain in properties for sale,” the association said. “Despite the increased supply, multifamily homes on the market have seen double-digit growth each month since January 2025 and prices continue to increase. A 9.5 percent annual increase in median price occurred in March, which reached a monthly record of $637,500.”

Pereira said increases in multifamily home prices have been driven by investor interest.

“Though properties are staying on the market a little longer and buyers have more listings to choose from, many Rhode Islanders are shut out of that market altogether due to affordability issues,” Pereira said.

Christopher Gavin can be reached at christopher.gavin@globe.com.