Westerly, RI Market Report — May 2026

• [Median Sale Price] decreased 9.5% QoQ to $592,500, reflecting softening price momentum.
• [Active Inventory] increased 14.7% QoQ to 109 units, marking 4 consecutive months of growth.
• [Listing Velocity Ratio] remains elevated at 1.73, indicating inventory is building rapidly.
• [Closed Sales] totaled 26 units, a 36.8% increase compared to last May.
• [Sale-to-List Ratio] reached 100.1%, with 69.2% of sales closing at or above the final asking price.
• [Months of Supply] stands at 4.2, confirming a balanced market environment.

Pricing in Westerly reflects a competitive environment for properties that reach the closing table. Comparing the median sale price of $592,500 to the median sold list price of $575,000 confirms that properties are frequently closing above their final asking price. This is corroborated by the 100.1% average sale-to-list ratio. Among sellers who reduced their price, the average reduction was 10.7% from the original list price, signaling that mispriced assets face immediate correction.

Median sale price has declined for 1 consecutive month. The current $592,500 sits 1.9% above the 3-month average of $581,500 and 3.5% above the 6-month average of $572,667; this single-month movement indicates volatility rather than a sustained downward trend. Locally, the median sale price is 18.5% above the Rhode Island state median of $500,000. Price-per-square-foot at $375.59 (down 11.2% QoQ) confirms that current pricing trends are consistent across property sizes.

For Listing Agents: Utilize the 100.1% sale-to-list ratio to set firm price expectations; the 10.7% average price reduction on adjusted listings serves as a clear warning that initial pricing must be aligned with current market expectations to avoid extended days on market.

For Buyer Agents: Given that 69.2% of sales are closing at or above list price, focus on identifying properties with longer active DOM to find negotiation leverage, as aggressive bidding remains the norm for "fresh" inventory.

Active inventory of 109 units reflects 45 new entries against 26 closings. The listing velocity ratio of 1.73 signals that inventory is building rapidly, as new listings significantly outpace sales. Total sales volume of $24.73M was driven by a 36.8% increase in transaction count compared to last May, partially offset by a 1.2% YoY decline in median price.

Months of supply currently sits at 4.2, classifying this as a balanced market where buyers have moderate negotiating power. Compared to last May, active inventory has increased 26.7%, confirming that the current supply buildup is a departure from the restricted inventory levels observed one year ago.

For Listing Agents: With inventory rising, ensure your marketing highlights specific value-adds to distinguish your property from the 109 available units.

For Buyer Agents: A 4.2-month supply indicates a balanced market; prioritize properties that have been active for over 10 days, as these represent the core of the increasing supply.

The median DOM for closed sales is 30 days, representing an 11.8% faster pace than the previous quarter. The gap between median DOM (30 days) and CDOM is negligible, suggesting that sellers are generally securing sales without the need for multiple relisting cycles to reset their market clock. Median days to pending—a leading indicator of demand—remains the most critical metric for assessing the speed of the current environment. Meanwhile, the median DOM for active inventory (10 days) indicates that while fresh inventory is rapidly absorbed, overall market liquidity is adjusting to the rising active supply.

For Listing Agents: The 30-day median DOM for closings should be your anchor; prepare your sellers for a 4-week window to achieve a contract.

For Buyer Agents: Given the 10-day median DOM for active inventory, ensure your clients have financing in place to act immediately on new listings.

Westerly is currently a Balanced Market. This assessment is supported by a 4.2-month supply of inventory and a 100.1% sale-to-list ratio. While the market remains competitive, evidenced by 69.2% of sales occurring at or above asking price, the four-month streak of rising inventory confirms that the extreme scarcity seen in previous periods has subsided. Sellers of turn-key homes continue to hold an advantage, but the expanding inventory provides buyers with a necessary buffer against aggressive, runaway pricing.

For Listing Agents: The market is balanced; do not over-price, as the rising supply provides buyers with alternatives.

For Buyer Agents: The 4.2-month supply is a positive development; you are no longer in an environment of total seller dominance, so hold firm on contingencies.

Price momentum is currently in a 1-month downward streak, with the median price of $592,500 above both the 3-month ($581,500) and 6-month ($572,667) averages. Inventory direction remains upward, following a 4-month streak of growth. The listing velocity ratio of 1.73 indicates inventory is still building, which may continue to apply downward pressure on prices through the next quarter. Regarding DOM trajectory, the median DOM of 30 days is 11.8% faster than the previous quarter. Compared to last May, the market is demonstrating significantly higher transaction volume. If the current velocity ratio persists, we expect supply to continue expanding, likely cooling price growth.

Data is sourced from the Rhode Island Association of Realtors (riar). The analysis covers the city of Westerly for the period 2026-05-01 to 2026-05-31. There were 26 closed transactions; due to the small sample size (<30 units), medians are subject to volatility. CLOSED SALES and INVENTORY populations are distinct and should not be cross-referenced to measure pricing gaps. All metrics are calculated based on the methodology defined in the RealAnalytica research mandate.