RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
Home Prices/Sales Continue to Climb in JanuaryWarwick, RI, February 25, 2010…The median price of single family home sales rose 14.3 percent in Rhode Island from January 2009 to January 2010 according to sales data released today by the Rhode Island Association of Realtors. Median price, which reflects the marketing mix (size and type) of properties sold and not the value of the same property over time, rose to $200,000 from $175,000 in January 2009. Last month marked the third consecutive month of increased prices. The price increase correlates to a drop in the rate of distressed sales. Thirty-two percent of all sales last month were sold through foreclosure or short sale, compared to 47.8 percent 12 months earlier. The median price of conventional single family sales – those not sold under duress - was $227,500. “Price gains are traditionally precipitated by several months of increased sales volume and that seems to be the case here,” said Karl Martone, President of the 4400-member Realtor organization. “Rhode Island’s housing recovery seems solid with all the trends tracking in the right direction. People are taking advantage of low prices and interest rates, which is helping to deplete excess inventory and move foreclosures out of the market. We’re excited for the spring market which seems to be coming early this year thanks to the extension and expansion of the home buyer tax credit,” he said. In November, Congress approved the extension of up to $8000 in tax credits for eligible buyers who haven’t owned a home in three years. The stimulus package was also expanded to offer up to $6500 in tax credits for buyers who have owned and lived in a home for five consecutive years of the past eight years. In order to take advantage of the credit, purchase and sales contracts must be signed by April 30th and closings must take place by the end of June, 2010. Condo sales showed signs of improvement last month as well, with median price remaining the same as last year at $166,000 and sales volume up 28 percent. Condo sales have increased each month since September, 2009, leading to January’s stabilization of prices. The number of distressed condo sales decreased to 23.4 percent of all sales in January 2010 from 30 percent in January 2009. The median price of condos selling through conventional terms was $185,000. The median price of multi-family property sales increased 20.9 percent from $91,000 in January 2009 to $110,000 last month. The number of sales decreased however, down 21.3 percent to 129 from 164 sold in January 2009. The decrease in activity follows a surge in sales in 2009 when investors and first time buyers flooded the multi-family market to take advantage of great investment opportunities. Distressed sales, though prevalent at 66.7 percent of all sales, were down from January 2009 when 81.7 percent of all multi-family sales were sold through short sale or foreclosure. A review of single family town-by-town statistics showed price and sales volume varied throughout the state. The median sales price of single family homes in East Greenwich was up by 95.2 percent where the market saw a 300% increase in sales volume. On the other end of the spectrum, median price fell 62.4 percent in Jamestown which experienced a 200 percent increase in the number of single family sales. “We can’t say it enough. All real estate is local. The biggest mistake people can make is to base their real estate decisions on national or even regional news. It’s critical that you know what’s going on in your neighborhood,” said Martone.
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Karl Martone2010 REALTOR® January 2010 ------------------ January 2010 ------------------ January 2010 ------------------ January 2010
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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. |
