RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
Twelve RI Towns See Double Digit Price Appreciation in Second QuarterAugust 7, 2007, Warwick , RI …Second quarter sales statistics recently released by the Rhode Island Association of Realtors® (RIAR) showed a slight decline in median single family home prices sold between April and June, 2007, as compared to the same period last year. A market price adjustment reflected only a 1.75 percent drop in single-family median home prices, figures that stand in stark contradiction to rampant media reports touting a drastically declining market. “Negative headlines sell papers but the facts don't lie, our market is correcting itself moderately as predicted all along,” said Cecile Cohen, President of the Rhode Island Association of REALTORS®. “As long as we have good economic conditions like a steady job market and historically low interest rates, the real estate market in Rhode Island won't see a severe downturn.” Thirteen communities saw price increases, 12 of which showed double digit appreciation, in the second quarter of 2007 when compared to second quarter, 2006. Twenty-seven Rhode Island towns showed some price depreciation. “We've said all along that all real estate is local,” said Cohen. “When people see headlines citing falling or rising prices, that doesn't necessarily mean that's what's happening in their neighborhood. Each location is intrinsically different and the market will react accordingly. What's happening in Miami isn't happening here,” she said. The days a home remained on the market during the second quarter, 2007 rose to 87 from 76 the year prior, likely resulting from increased inventory year-to-year and consumers trying to time the market. The number of homes sold from April through June this year declined to 2280 from 2433 last year. That number has been trending upward in 2007 however, up from 1171 during the three-month period of February through April, 2007. “People that were sitting on the sidelines are beginning to realize that they may well be missing their best opportunity. There are lots of homes to choose from, mortgage companies are still offering incredibly low financing costs, and sales statistics aren't showing any indication of drastic decreases,” Cohen commented. Nationally, housing prices increased last month according to a July report by the Federal Housing Finance Board which reported a national price increase in single family average prices of 4.3 percent from May to June of this year. The National Association of Realtors reported that average single family home prices rose 2.2 percent for the same time period. Local MarketsMedian home prices in Rhode Island varied greatly, rising as much as 32.81 percent in Hopkinton and falling as much as 44.73 percent in Little Compton. In analyzing the data, it is important to note that median prices do not necessarily reflect values of similar properties year-to-year, but rather reflect the marketing mix (price, size and type of homes) on the market at that time. The following provides a summary of local county sales. Interviews are available with the Presidents of the local boards of Realtors, noted below. Newport County: Tiverton, Little Compton, Portsmouth, Middletown, Newport and Jamestown Newport County saw 207 home sales in the second quarter of 2007 with most activity happening in Newport itself – 52 sales. Prices increased in half of its townships - Jamestown , Tiverton and Newport – and decreased in Little Compton, Portsmouth and Middletown . While Little Compton single family prices dropped by 44.73 percent, only 9 homes sold in the town. As such, it should be noted that relatively few sales results in data that is statistically insignificant when comparing to the same time period last year. Kent County: East Greenwich, Warwick, West Warwick, Coventry and West Greenwich Following the trend seen in first quarter, 2007, Kent County saw declining median prices in all towns but Coventry which rose 3.03 percent. Five hundred and thirty homes sold in Kent County , 11 less than the same time last year. For the second quarter in a row, Warwick had more single family home sales (283) than any other Rhode Island town. South County: Exeter, Hopkinton, Richmond, Charlestown, Westerly, South Kingstown, New Shoreham, Narragansett and North Kingstown The towns of South County saw a strong pricing correction with all but two of South County 's ten towns experiencing price appreciation in the second quarter. (In first quarter, all but two saw price depreciation.) Home prices in Hopkinton led the pack with a 32.81 percent gain in median prices. Three hundred and sixty-three homes sold, up from 348 during second quarter, 2006. Northern Rhode Island: Lincoln, Cumberland, Woonsocket, Pawtucket, Central Fall, North Smithfield, Smithfield, Burrillville, Glocester, Foster, and Scituate Northern RI as a whole faired reasonably well during the April through June 2007 housing market. Sales were down 69 units from 525 to 456 sales during the same period of 2006.This slight decrease can be partially attributed to buyers having more inventory to choose from and waiting for that “perfect” house. “What's happening is that houses properly priced are selling and relatively close to asking. What skew the results are those houses that are placed for sale at higher than suggested prices. Those houses may sell eventually at what they should have been priced at originally,” commented Robert Martin, President of the Northern Rhode Island Board of Realtors. “Mortgage rates are still very affordable. Inventory is great, and the buyers are available. This is still a good time to list or purchase,” he added. Metro and East Bay: Barrington, Warren, Bristol, East Providence, Providence, East Side, North Providence, Johnston, Cranston Six metro and East Bay towns (Warren, Bristol, East Providence, Providence, Johnston and Cranston) saw drops in median prices during the second quarter of 2007, two (East Side of Providence and North Providence) increased and one (Barrington) remained the same. Cranston had the most sales (188) and Warren the least (16). The East Side of Providence saw double-digit appreciation. “We continue to see a leveling off in our local markets as sellers are getting realistic about pricing their properties. Activity remains steady as buyers are finding good value for their buying dollars with more choices than they have had in several years,” commented Robert Sparn, President of the Greater Providence Board of REALTORS®. |
2007 REALTOR® View 2007 2nd 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. |
