Narragansett, RI Market Report — May 2026

• Median Sale Price: $760,000 (▼ 1.0% QoQ, ▲ 1.7% YoY)
• Active Inventory: 135 units (▲ 28.6% QoQ, ▲ 187.2% YoY)
• Closed Sales: 21 units (▲ 50.0% QoQ, ▲ 50.0% YoY)
• Months of Supply: 6.4 (Buyer’s Market)
• Listing Velocity Ratio: 2.62 (Rapid inventory accumulation)
• Median DOM (Closed): 24 days (▲ 118.2% QoQ)
• Sale-to-List Ratio: 98.4% (▼ 1.04pp QoQ)

Narragansett’s pricing trajectory is showing signs of fatigue, with the median sale price declining for 2 consecutive months. The current $760,000 median sits 4.8% below the 3-month average of $798,708 and 0.8% above the 6-month average of $754,354, confirming sustained downward pressure relative to the spring peak. Pricing precision is reflected in the 98.4% sale-to-list ratio and the gap between the $760,000 median sale price and the $790,000 median sold list price. With an average price reduction of only 0.3% among sellers who chose to drop their price, broad-based seller capitulation has not yet materialized, though the cooling streak necessitates disciplined pricing.

The pricing trend is broad-based, supported by an 8.0% QoQ increase in median price per square foot to $687.42. Locally, the median sale price remains 52.0% above the Rhode Island state median of $500,000.

Actionable Callouts:

• For Listing Agents: With a 98.4% sale-to-list ratio, properties are selling close to their final asking price. Avoid aspirational pricing; anchor your strategy to the $790,000 median sold list price to avoid lingering on the market.
• For Buyer Agents: While 61.9% of sales are closing at or above list price, the rising months of supply provides a strategic window to prioritize properties with longer active DOM for potential concessions.

The market is currently absorbing 55 new listings against 21 closed sales, resulting in a listing velocity ratio of 2.62. This ratio confirms that inventory is building rapidly, as new listings outpace sales at more than twice the rate of a balanced market. This has pushed months of supply to 6.4, firmly establishing a buyer's market. While closed sales increased 50% year-over-year, the 187.2% surge in active inventory (135 units) has significantly altered the supply-demand balance.

Supply inflows were broad-based: 41 single-family, 2 multi-family, and 1 condo. Given the small absolute changes in non-single-family segments, the supply trend is a market-wide phenomenon rather than a property-type shift.

Actionable Callouts:

• For Listing Agents: The rapid increase in active inventory creates a "crowded shelf" effect. Ensure property presentation is flawless to differentiate your listing from a growing surplus of options.
• For Buyer Agents: With 6.4 months of supply, you have significant leverage. Use the expanding inventory count to negotiate repairs or concessions that were previously unavailable.

Market speed has decelerated, with the median DOM for closed sales reaching 24 days—a 118.2% increase QoQ. When compared to the cumulative DOM (CDOM) of 26.4 days, it is evident that sellers are not engaging in widespread relisting strategies to reset their market clock. While the market has slowed, active listings are still moving through the funnel relatively quickly, with a median active DOM of 13 days, indicating that fresh, well-priced inventory is still absorbed faster than the overall market average.

Actionable Callouts:

• For Listing Agents: Monitor the 13-day median DOM for active inventory as your primary benchmark. If your listing passes this mark without an offer, it is likely beginning to underperform.
• For Buyer Agents: Use the 24-day median DOM for closed sales to identify properties that are becoming stale and may be ripe for negotiation, as sellers face the pressure of an increasingly competitive environment.

Narragansett is currently a balanced-to-buyer’s market. The assessment is anchored by 6.4 months of supply and a 98.4% sale-to-list ratio. The high percentage of sales at or above asking (61.9%) acts as a critical countervailing force, confirming that demand for premium, turnkey inventory remains robust. This bifurcated market environment requires sellers to price aggressively for the current environment while buyers should continue to approach top-tier properties with competitive, yet data-supported, offers.

Market trajectory is defined by a 2-month streak of declining sale prices and a 3-month streak of rising active inventory. With the current median sale price 4.8% below the 3-month average of $798,708, downward price momentum is building. The DOM trajectory is rising, and the listing velocity ratio of 2.62 confirms sustained supply accumulation. If the current months of supply of 6.4 persists, we expect continued downward pressure on pricing and longer marketing times throughout the remainder of the quarter.

This report is based on RealAnalytica MLS analytics provided by the Rhode Island Association of Realtors (riar) for the period of 2026-05-01 to 2026-05-31. The current period analysis is based on 21 closed sales; due to this small sample size, median figures may be subject to volatility and should be interpreted with caution. CLOSED SALES and ACTIVE INVENTORY represent distinct property populations; they are not comparable for price-gap analysis. All metrics follow standard RealAnalytica definitions for market velocity and supply.