RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
RI Single Family Sales Trend UpwardWarwick, RI…First quarter sales statistics recently released by the Rhode Island Association of REALTORS® indicate a reversal in the sales slowdown that marked much of 2006. Sales of single-family homes rose 1.25 percent from January through March 2007 as compared with the same period last year. A market price adjustment reflected in a 2.86 percent drop in single-family median home prices appears to be luring buyers back into the market. The median sales price of a single-family home fell to $272,000 from $280,000 this time last year. Days on market increased from 82 days last year to 93 during first quarter 2007 as many buyers took a little longer monitoring the market before making purchase decisions. “Though we've experienced a minor price correction, we're pleased that the market seems to be turning around. Thankfully the negative economic factors like high unemployment and recession that typically precipitate a big decline don't exist,” said Cecile Cohen, President of the Rhode Island Association of Realtors. Historically over the past 21 years, Rhode Island homeowners have not seen more than a 4.8 percent drop year to year in first quarter single-family median sale prices but have experienced gains of as much as 43 percent from one year to the next. The median price of a single family Rhode Island home has risen from $103,000 in 1987 to $272,000 this year. “It's a great time to buy a home,” said Cohen. “Interest rates are still at historic lows, there's more to choose from than there was a few years ago. Overall, the market is coming back into balance.” The National Association of Realtors forecasts 2007 to be the fourth highest year on record for existing-home sales. Nationally, existing-home sales are likely to total 6.34 million in 2007 and 6.52 million next year, in contrast with 6.48 million in 2006. New-home sales are seen at 904,000 this year and 935,000 in 2008, below the 1.05 million last year. Housing starts are estimated at 1.47 million in 2007 and 1.55 million next year, down from 1.80 million units in 2006. “As home sales moderate, overall home prices will be essentially flat this year,” said David Lereah, Chief Economist of the National Association of Realtors. “The good news is that inventories remain well below the levels experienced during the last housing downturn in the early 1990s, and supplies are close to balance in many areas. When you look at housing activity in 2007, especially during the first half of this year, the percentage change in median home price is being distorted as the composition of sales shifts geographically from high-cost markets to moderately priced areas, in contrast with the sales distribution a year earlier,” Lereah said. “Within given markets, most areas can expect minor price gains.” Local Markets Newport County: Tiverton, Little Compton, Portsmouth, Middletown, Newport and Jamestown Newport County saw increased sales in half of its townships - Portsmouth, Middletown and Newport - accompanied by a decline in median prices in all towns except Newport itself, which saw a 15 percent gain. The city of Newport had the most number of sales in the county with 39 transactions, up from 27 the year prior. Middletown, Jamestown and Little Compton experienced double digit price drops. According to Jennifer O'Hora Lawrence, President of the Newport County Board of Realtors, the double digit declines can be explained by the low number of sales in Jamestown – (10) and Little Compton - (4), which skews the market. Middletown's double digit drops likely occurred because eight of the 24 properties sold in the first quarter of 2007 where under $300,000 compared to two in 2006. Kent County: East Greenwich, Warwick, West Warwick, Coventry and West Greenwich Kent County saw declining median prices in all towns but Coventry which rose 2.99 percent (from $267,500 to $275,500.) The number of sales fell in West Warwick, Coventry and West Greenwich and rose in East Greenwich and Warwick. Prices throughout the entire county adjusted only marginally but sales have remained strong. Nowhere was that more apparent than Warwick. The City of Warwick had more sales than any other city or town in the state. South County: Exeter, Hopkinton, Richmond, Charlestown, Westerly, South Kingstown, New Shoreham, Narragansett and North Kingstown The towns of South County saw declining prices overall with the exception of Hopkinton and Charlestown. Adjusted prices however, encouraged an increase in sales in all towns but Hopkinton, Richmond and Westerly, which were down by no more four sales per town from the year prior. Charlestown saw a five percent increase in median sales price and a 43.48 percent increase in sales.South County homes have experienced healthy price gains over the last five years. During the "Boom Years" in particular, there was a surge in the prices from year to year, making this recent cooling seem more dramatic in statewide comparisons. Overall, South County sales were up over fifteen percent in the first quarter. The average home price countywide was $ 328,646, higher than the statewide median by about twenty percent. Northern Rhode Island: Lincoln, Cumberland, Woonsocket, Pawtucket, Central Fall, North Smithfield, Smithfield, Burrillville, Glocester, Foster, and Scituate All but one town (North Smithfield) in Northern Rhode Island saw a price decline from January through March, 2007 as compared to the same time period last year, accompanied by an increase in sales in six out of Northern Rhode Island's 11 towns. Pawtucket led the area with 71 sales, up from 66 sales the year prior. The median price of a single family home sale in that city dropped 5.58 percent. Sales in North Smithfield increased by 13.33 percent and the town's median sales price also increased marginally by 1.59 percent. Metro and East Bay: Barrington, Warren, Bristol, East Providence, Providence, East Side, North Providence, Johnston, Cranston In contrast to much of the state, the number of Providence sales during first quarter 2007 declined from the same time period last year and the median sales price rose 1.21 percent, from $207,000 to $209,500. Both East Providence and Barrington followed the same trend with price gains of 1.64 percent and 5.6 percent respectively. All other Metro and East Bay townships saw a decline in median sales price accompanied by an increase in number of sales. The median price of sales on the East Side saw a double digit decline as the marketing mix of properties changed dramatically from year to year. In 2006, six homes sold that were originally listed over $1 million. In 2007, no single family properties were sold for more than $1 million and sales statistics included many lower value homes. |
2007 REALTOR® View 2007 1st Quarter ----------- |
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. |
