RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
RI Association of REALTORS® Release 2008 Third Quarter Sales StatisticsWarwick, RI - November 12, 2008... The Rhode Island Association of Realtors (RIAR) released sales statistics today which showed a drop in both sales volume and median price for single family homes and condominiums sold from July through September 2008 as compared to the same period last year. The number of multi-family properties sold increased, spurred by sharply falling prices. The median price of single family homes sold in the third quarter fell 17.83 percent, from $279,900 in 2007 to $230,000 this year. More than a quarter (27.41 percent) of the sales involved distressed properties sold through foreclosures or short sales. The median price of non-distressed single family homes was $268,500. Warwick, Providence, Cranston and Pawtucket combined had approximately half of the single family distressed sales in the state. The number of homes sold dropped 8.07 percent to 1926 from 2095 sold in 2007. According to Paul Leys, President of the Rhode Island Association of Realtors, “Rhode Island struggled with housing sales in the third quarter. However, it’s never been more important to see how the market relates to your own situation. If you dissect the statistics to look at the home sales that occurred under normal circumstances, not duress, you see that the median price of $268,500 was more than the price we saw in 2003, a time when Rhode Island’s home price appreciation ranked first in the country with a year-to-year increase of more than 18 percent. Also, the fact that sales increased markedly at the end of the third quarter is a good sign for Rhode Island.” September statistics showed sales of single family homes up 6.4 percent from September 2007 and pending sales-those under contract but not yet closed – up 26.3 percent. According to Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), “Rhode Island is on the cusp of a turnaround. Sales rose in September from a year ago. This is the first year-over-year increase in about 2 1/2 years.” (Yun's comments are based on statistics from the National Association of Realtors which represent sales in the single family, multi family and condominium markets in the Providence-New Bedford-Fall River area. RIAR recently announced that September statistics showed sales increased for the first time in 13 months. RIAR data represents only single family home sales within Rhode Island.) He further explained, “California sales were turning positive about five months ago and the positive momentum strengthened each subsequent month. Sales in California are now up strongly by 60% from one year ago. The buyers are returning largely in part to take advantage of much lower prices. I view Rhode Island today as resembling California five months ago. Also, keep in mind that California sales are rising even as jobs are being cut there. Home sales are impacted more strongly by affordability rather than jobs. In Rhode Island, more than 90 percent of the workforce still have jobs and they can respond to affordability incentives.” Multi-family home sales increased 52.2 percent from 295 sales from July through September 2007 to 449 sales this year. The median price fell 46 percent from $250,000 to $135,000. The hardest hit category of property sales, the multi-family market saw 317 distressed sales in the third quarter, or 70.6 percent. The majority of multi-family sales occurred in urban markets. “The entire Rhode Island housing market is on sale and our numbers are showing that people are sensing the bottom,” said Leys. “Housing stimulus relief efforts like the $7500 tax credit for those who haven’t owned a home in three or more years are helping to make home ownership achievable for a lot of people. We’re optimistic that the worst is behind us,” he said. Local Market HighlightsThe phrase “all real estate is local” now appears more appropriate than ever with price and sales volume at various extremes from town to town. Single family home prices were up by as much as 39.5 percent in Exeter and down 39.8 percent in Providence where distressed sales were more prevalent. (Median price was down 50.4 percent in New Shoreham, however, only one property sold during the period. Fewer sales result in less valid statistics.) Exeter was joined by the other South County towns of Charlestown and Narragansett which also saw rising prices, as did Barrington, Warren and the East Side. The volume of single family sales grew most sharply in Providence, Pawtucket, Central Falls, Cranston, Smithfield, Foster, Glocester and West Warwick, all towns which saw decreasing prices. The East Side was the only area in the state that saw both increasing single family home sales and median price in the third quarter.
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Paul Leys2009 REALTOR® ----------- View 2008 3rd Quarter ----------- View 2008 3rd Quarter ----------- View 2008 3rd 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. |
