RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Trends Show Rising Sales and Prices for RI's Single Family Homes
Warwick, RI, June 21, 2012...The number of single family homes sold last month rose 15 percent from a year ago according to the Rhode Island Association of Realtors, and pending sales - those under contract but not yet closed - rose by 22 percent. During the same period, the number of single family homes available for sale dropped 12 percent. The enhanced activity in closed and pending sales, coupled with the decline in the number of properties for sale, signifies that the market is reaching a healthier balance between supply and demand. Currently, there is an eight-month supply of single family homes on the market compared to a 10-month supply last year. A six-month supply typifies a balanced market. Median price, though down seven percent from a year ago, increased 11 percent from the month prior. May's single family median sales price was $195,000. Single family distressed sales, comprised of short sales and foreclosures sold at deep discounts, accounted for 25 percent of all sales in May, down from 27 percent in the prior year. The median price of conventional sales only, held relatively steady at $234,500, down only one percent from the year prior. "I think we're finally seeing the last push of foreclosure and short sales moving through the market. Once they are cleared out of the system, we'll see prices start to rise," said Jamie Moore, an appraiser and President of the Rhode Island Association of Realtors. "The problem we're seeing now is getting appraisals to reflect what's happening in the market. Since appraisal estimates are based on past history, low appraisals are sometimes hindering full price sales. I think we would be seeing even more robust sales, if this weren't the case." Sales of multi-family properties dropped 13 percent and the supply of multi-family properties for sale fell 18 percent. Pending sales however, continued to increase, up 16 percent. The multi family median sales price also decreased, down four percent to $115,100. Distressed sales continued to drop, accounting for fifty percent of all sales, down from 53 percent last year. The median price of non-distressed sales was $148,000, a two percent increase from May, 2011. There is currently a 13-month supply of multi-family homes on the market. "The multi-family market is typically the investor's market and I think they anticipated the bottom before everyone else," said Moore. "Sales for investment appear to be slowing and the rush to grab bargains is subsiding." May signified the first time multi-family sales have declined since last August Moore explained. In the condominium sector, sales rose significantly, up 26 percent from May 2011 to May 2012, and pending sales rose seven percent. The number of condos for sale fell 14 percent from a year ago while median price fell five percent to $171,000. Twenty-five percent of all condo sales were sold through foreclosure or short sale, up only three percent from a year ago and the median price of non-distressed sales only was $195,000. There is an 11-month supply of condominiums on the market. "The number of condo sales has increased month to month all year long. May sales were more than double the amount of sales seen at the beginning of the year, so the condo market appears to be regaining its footing as well," said Moore. |
Jamie Moore2012 REALTOR® May 2012 ------------------ May 2012 ----------- May 2012 ------------------ |
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. |
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