RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
2006 Real Estate Price Remained StableDespite negative media reports of a real estate downturn throughout most of last year, Rhode Island real estate prices overall saw relatively little adjustment from year to year (January through December) according to statistics released today by the Rhode Island Association of REALTORS. Year-end 2006 sales data showed that single-family home prices fell a marginal .14% (a decrease of $400 for a median priced home,) multi-family prices dropped 1.72 percent and condo prices rose 2.79 percent. According to Cecile Cohen, President of the Rhode Island Association of REALTORS, “People who bought Rhode Island property five years ago have made over 80 percent on their investment and they didn't see any major loss in that appreciation last year. Even those who bought just two years ago would see an average gain of 6.7 if they sold now.” In 2001, the median pricedRhode Island home sold for $156,000. In December, 2004 that figure rose to $264,700. In December, 2006, it was $282,500. The number of sales declined in all three categories, down 14.4 percent for single-family homes, 25.23 percent for multi-family properties and 16.35 percent for condos. Rhode Island was in line with the trend of the rest of the country in terms of number of home sales – about 70 percent of the markets around the U.S. experienced declining sales.. According to the Rhode Island Association of REALTORS (RIAR) however, the number of pending single-family home sales was nearly identical in December 2005 and December 2006 (836 in 2005 to 837 in 2006). Nationally in December, 2006, the Pending Home Sales Index showed the biggest increase since March, 2004 according to the National Association of Realtors. The increase in the index, a leading indicator for the housing sector, affirms the stabilization of the market. The pending sales data, combined with the fact that the supply of Rhode Island property for sale has been decreasing steadily since September, 2006, indicates that the market moderation that began last year has likely run its course. The State-Wide Multiple Listing Service (MLS) showed 11,389 listings in September, 2006. That number has been decreasing steadily, ending the year at 9,960 -- a 13 percent decrease. Additionally, the state's economy remains stable and interest rates remain at historic lows, creating optimal conditions for a stable real estate market in 2007. Growing inventory in 2006 created an increase in the number of days a property remained on the market for all categories. Single-family homes remained on the market 79 days in 2006, 12 days more than the year prior. Condos remained on the market 84 days, up from 65 days in 2005 and multi-families were sold in 74 days on average, up from 54 days the year before. While compared to the boom years, the number of days on market has increased, but still remains comparable to the historical, ten-year average of 77 days for single-family homes, 79 for condos and 83 for multi-family properties. “As we predicted, we didn't see a crash in the real estate market last year—the economic factors just weren't there for that to happen. We just saw a moderating market. We couldn't sustain the torrid pace of the market that we were in indefinitely. Last year was all about getting back to a healthy market…one that's good for buyers and sellers,” said Cohen.
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About the Rhode Island Association of REALTORS®The Rhode Island Association of REALTORS®, one of the largest trade organizations in Rhode Island with more than 5,000 members in nearly 1,000 offices, has been serving Rhode Islanders since 1948. Advocating for Rhode Island's property owners, the Rhode Island Association of REALTORS® provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. Last year, RI Realtors transacted $6.9 billion in residential real estate sales and $7.1 billion in total sales and rentals including commercial transactions. The Association is one of more than 1,500 boards and associations that comprise the National Association of REALTORS® (NAR). The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries and who subscribe to a strict Code of Ethics. REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. |
