Westerly, RI Market Report — May 2026

• Median Sale Price: $592,500 (▼ 9.5% QoQ, ▼ 1.2% YoY); remains 3.5% above the 6-month average of $572,667.
• Active Inventory: 109 units (▲ 14.7% QoQ, ▲ 26.7% YoY), marking 4 consecutive months of growth.
• Closed Sales: 26 transactions (▼ 3.7% QoQ, ▲ 36.8% YoY).
• Median DOM (Closed): 30 days (▼ 11.8% QoQ, ▲ 25.0% YoY).
• Months of Supply: 4.2 months, placing the market in the balanced/neutral spectrum (3–6 months).
• Sale-to-List Ratio: 100.1% (▲ 1.05pp QoQ, ▲ 1.73pp YoY).
• New Listings: 45 units (▼ 10.0% QoQ, ▼ 30.8% YoY).

Pricing precision in Westerly remains high, evidenced by a 100.1% average sale-to-list ratio. Comparing the median sale price ($592,500) to the median sold list price ($575,000)—the asking price of those specific properties at the time of sale—highlights that buyers are consistently meeting or exceeding seller expectations. Among the cohort of sellers who reduced their prices, the average reduction was 10.7%, indicating that while demand is strong, strategic initial pricing remains essential to avoid capitulation. The 11.2% QoQ decline in median price-per-square-foot further confirms that current pricing trends are broad-based.

Momentum data shows the 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. Local pricing is 18.5% above the Rhode Island state median of $500,000.

Actionable Callouts:

• For Listing Agents: With a 100.1% sale-to-list ratio, pricing at or slightly below the median sold list price of $575,000 remains the most effective strategy to trigger competitive bidding and avoid the 10.7% average price reduction.
• For Buyer Agents: Given that 69.2% of homes sell at or above the asking price, buyers should use the 100.1% sale-to-list ratio as the baseline for their offer strategy and prepare for competitive terms.

Westerly’s 109 active listings reflect the net result of 45 new entries against 26 closings. With a listing velocity ratio of 1.73, the market is building inventory as new supply outpaces absorption. This 4.2-month supply places the city firmly in a balanced market.

Total sales volume reached $24.73M; the 33.1% QoQ increase was driven by an offset effect, where stable transaction volume combined with price fluctuations relative to the prior period. Compared to last May, closed sales are up 36.8%. Single-family homes remain the primary market driver with 31 new listings, while multi-family (1) and condo (2) segments saw minimal replenishment.

Actionable Callouts:

• For Listing Agents: Increased inventory velocity (1.73) means your property is competing with a larger pool of new listings; prioritize high-quality presentation to differentiate.
• For Buyer Agents: With 4.2 months of supply, buyers have a wider range of options; utilize the balanced conditions to focus on value, while remaining prepared to compete for high-demand, correctly priced inventory.

Properties are selling with a median DOM of 30 days, an 11.8% improvement from the previous quarter. The contrast between this closed DOM and the 10-day median DOM for active inventory indicates that while fresh listings are being absorbed quickly, older inventory continues to linger. Westerly’s 30-day timeline is 42.9% slower than the Rhode Island state median of 21 days.

Actionable Callouts:

• For Listing Agents: If a property does not move within the 30-day median DOM, consider a price adjustment to align with current absorption rates.
• For Buyer Agents: The 10-day median DOM for active inventory signals high-demand "fresh" inventory; expect multiple-offer scenarios for new, well-priced arrivals.

Westerly is a Balanced market. This classification is supported by a 4.2-month supply and a competitive 100.1% sale-to-list ratio. While 69.2% of sales closed at or above list price, the 14.7% QoQ rise in active inventory acts as a cooling mechanism. Sellers should note that while buyers remain aggressive, they are becoming increasingly selective as inventory choices grow.

Actionable Callouts:

• For Listing Agents: Utilize the competitive 100.1% sale-to-list ratio to justify accurate pricing, but prepare for longer days-on-market if the property is not correctly positioned.
• For Buyer Agents: Focus on properties that have been active for over 30 days, as these sellers may offer more flexibility given the rising inventory competition.

The market is navigating a transition period. With 1 consecutive month of price decline and the current median price of $592,500 sitting between the 3-month ($581,500) and 6-month ($572,667) averages, pricing is stabilizing after earlier peaks. Inventory remains the primary factor to watch: the listing velocity ratio of 1.73 confirms inventory is still accumulating. If the current velocity ratio persists, buyer leverage will continue to expand. All outlooks are contingent on inventory inflow; a significant decrease in new listings could quickly tighten the market.

This report uses data from the Rhode Island Association of Realtors (RIAR) for the city of Westerly for the period of May 1–31, 2026. This period saw 26 closed sales; due to this small sample size (n<30), median metrics are subject to volatility. CLOSED SALES and INVENTORY populations are distinct; pricing precision is derived from matched-pair (close/list) ratios within the closed population. RealAnalytica provides this research for professional guidance.