Westerly, RI Market Report — March 2026

• Median Sale Price: $497,000, down 9.5% QoQ (from $549,000) and up 5.2% YoY (from $472,500).
• Closed Sales: 20 transactions, up 17.6% QoQ (from 17) and 150.0% YoY (from 8).
• Active Inventory: 89 listings, up 11.2% QoQ (from 80) and 78.0% YoY (from 50).
• Listing Velocity Ratio: 1.70, signaling that new listings (34) significantly outpace closed sales (20).
• Median DOM (Closed): 26 days, down 29.2% QoQ from 36 days.
• Sale-to-List Ratio: 99.1%, an increase of 0.97 percentage points YoY.
• Months of Supply: 4.5 months, placing the market within the balanced (3–6 month) range.

The median sale price of $497,000 reflects a cooling trend, evidenced by two consecutive months of price decline. The current median price is 8.2% below the 3-month average of $541,167 and 10.2% below the 6-month average of $553,600, confirming clear downward momentum. While the median price per square foot saw a 34.2% QoQ increase, this is largely attributed to shifts in property mix rather than broad-based appreciation.

Pricing precision remains stable with a 99.1% sale-to-list ratio, indicating that buyers and sellers are closely aligned on market value for properties that reach a closing. Among sellers who reduced their price, the average capitulation was 5.4% from the original list price. Locally, the median sale price of $497,000 is 0.8% below the Rhode Island state benchmark of $501,250.

For Listing Agents: With a 99.1% sale-to-list ratio, pricing must be precise. Avoid inflating list prices, as sellers who did reduce prices accepted an average 5.4% drop from their original asking price.

For Buyer Agents: With 50% of sales closing at or above the current list price, your offer strategy must be highly competitive to succeed in this environment.

The active inventory of 89 listings reflects the ongoing balance between new inflows and closed outflows. Specifically, 34 new listings entered the market while only 20 properties closed. The listing velocity ratio of 1.70—up from 1.53 in the previous period—indicates that inventory is building rapidly, as any ratio above 1.5 suggests that supply accumulation is outpacing demand.

The market remains balanced with 4.5 months of supply. This represents a significant shift from March 2025; closed sales rose 150.0% and new listings surged 78.9% YoY. While total sales volume declined 48.8% QoQ, this was driven by a combination of the 9.5% decline in median sale price and lower transaction volume compared to the prior period.

For Listing Agents: In a market where new listings (34) are outstripping sales (20), your listing must stand out immediately to avoid accumulating days on market.

For Buyer Agents: The 4.5-month supply provides a broader selection than in tighter markets; target properties with higher days on market where sellers may be more inclined to negotiate.

The median DOM for closed sales is 26 days, showing faster movement compared to 36 days in the previous quarter. The current inventory is also moving quickly, with a median active DOM of 20.5 days.

Sellers should monitor the average price reduction of 5.4%, which serves as a benchmark for how much they may need to adjust if their property fails to move within the 26-day median window. While cumulative DOM data helps track whether properties have been relisted to reset their clock, the primary takeaway for practitioners is the velocity of the current active inventory.

For Listing Agents: If your listing exceeds the 26-day median closed DOM, evaluate whether a price adjustment is necessary to match the 99.1% sale-to-list ratio.

For Buyer Agents: Use the 5.4% average price reduction as a data point when assessing the flexibility of sellers whose properties have lingered on the market.

Westerly is currently a Balanced Market. This classification is supported by a 4.5-month supply, a 99.1% sale-to-list ratio, and the fact that 50% of homes are selling at or above their list price. While the market is stable, it is not currently favoring sellers, as inventory has increased for two consecutive months. Listing agents should focus on accurate, data-backed pricing, while buyer agents should ensure their clients are prepared to act quickly, given the competitive nature of half the market transactions.

Downward pricing momentum is evident, with two consecutive months of decline and the current median price 8.2% below the 3-month average of $541,167 and 10.2% below the 6-month average of $553,600. Inventory remains on an upward trend, with the listing velocity ratio currently at 1.70, suggesting that supply accumulation is accelerating. Compared to last March, activity is substantially higher across the board. If this velocity ratio of 1.70 persists, we expect increased pressure on sellers to adjust prices, potentially pushing the average price reduction beyond the current 5.4%.

This report uses RealAnalytica MLS analytics via the RIAR system for Westerly, RI, covering the period 2026-03-01 to 2026-03-31. There were 20 closed transactions in the current period. Because the sample size is 20, medians may be subject to volatility. CLOSED SALES metrics and INVENTORY metrics are derived from different property populations and are never cross-compared for price discounts. All pricing precision metrics, including the sale-to-list ratio, are calculated on a matched-pair basis for properties that closed.