RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
Housing Sales Continue to Increase in OctoberWarwick, RI - December 3, 2008.. Existing single family housing sales rose for the second month in a row in October according to statistics released today by the Rhode Island Association of Realtors (RIAR). Single family home sales rose by 15 percent from 540 sales in October 2007 to 621 sales in October, 2008. The median price dropped 18.73 percent over the same time period, from $258,500 last year to $215,000 this year. Seventy-two percent of October’s single family sales were conventional sales, not sold under duress through short sales or foreclosure. The median price for those homes was $252,000. Providence and Warwick led the state in the number of distressed sales. The single family market also saw an increase in pending sales of 17.92 percent. Pending sales are sales under contract but not yet closed and are typically considered the most current indicator of housing trends. Inventory dropped 5.43 percent from 6468 homes on the market last year to 6117 homes this year. The increase in pending sales coupled with the decrease in inventory signifies that Rhode Island is moving toward a more balanced market. ”We’ve seen a lot of bad news about the value of housing, high unemployment and bad economic conditions but it’s important to see the whole picture, “said Paul Leys, RIAR President. “The vast majority of Rhode Islanders…those who bought before 2005, would realize a profit if they sold their home today and while unemployment is over nine percent, that means more than ninety percent are still employed. We’re not trying to downplay the terrible situations that some Rhode Islanders are facing, but it’s important to keep perspective because consumer confidence drives the market. There are clear indications that Rhode Island was among the first to enter the housing correction and it appears that we’re among the first states to be coming out of it,” he continued. Multi-family sales more than doubled (124.4 percent) over the 12-month period fueled by dramatic price reductions. Prices were down 49.12 percent from $228,000 in October 2007 to $116,000 this year. Three out of four (74.6 percent) of the 193 multi-family properties sold were sold through short sales or foreclosure. The Rhode Island housing market saw a 5.52 percent decrease from September to October in the foreclosure rate, which stands in contrast to a 5.11 percent increase nationally, according to Realty Trac data. “Like most states, we’re far worse than last year in terms of foreclosure rate but the good news is, Rhode Island is one of the few states where that appears to be slowing down as we move the distressed properties off the market,” said Leys. The median price in the condominium market rose 2.94 percent from $221,000 in October, 2007 to $227,500 this year. Sales were down 41.8 percent from 141 sold in October 2007 to 82 sold in October 2008 however. Eleven out of the 82 sales (13.4 percent) were distressed sales. New government efforts announced last week to provide $800 billion for two new programs aimed at boosting the availability of auto and student loans, credit cards, home loans and other consumer lending — at cheaper rates — are expected to spur further recovery to consumer confidence and the housing market. |
Paul Leys2009 REALTOR® -----------
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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. |
