RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
RHODE ISLAND ASSOCIATION OF REALTORS® RELEASES LATEST SALES DATANovember 20, 2007, Warwick, RI – The number of projected closings for single family homes dropped in October to 833 from 1004 during October of 2006. Projected closings are a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Projected closings are considered the most current indicator of sales trends. Single-family inventory increased from 6,453 in October 2006 to 6,883 in October 2007. The median price of a single-family home sold from August through October of this year dropped 4.91 percent from $285,000 last year to $271,000 this year. The median price reflects the marketing mix (size and type) of properties on the market and does not necessarily reflect adjustments to like properties year-to year. Days on market for the August through October time period increased nine days year to year, from 78 last year to 87 this year. “We're coming off one of the hottest markets in history, so by comparison it seems slow but NAR (National Association of Realtors) still expects this year to be the fifth highest on record,” commented Rob Scaralia, 2008 President of the Rhode Island Association of Realtors (RIAR.) According to RIAR, most homes are still selling in less than three months and home equity gains remain strong for most sellers, thanks to several years of double digit appreciation followed by only minor price adjustments by comparison. Third quarter multi-family sales statistics also show signs of market recovery. Multi family sales in the third quarter showed a sharp decrease in sales and price, down 28.74 in unit sales and 12.28 percent in median price, indicating that speculators have left the market, a sign of market correction. According to Lawrence Yun, Chief Economist for the National Association of Realtors, “The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs.” Leading international economic forecaster Global Insights predicts home sales to decrease marginally until early 2008 and then begin rising, approaching $310,000 for a median priced home in 2010. “With record low interest rates and prices expected to bottom out in the near future, this could be the best time ever to buy. Real estate has proven to be a great long term investment over time with the multiple benefits of price appreciation, shelter and reduced taxes. And with the worst of the sub prime scare expected to be behind us by early 2008, this could be the perfect time to jump into the real estate market,” commented Scaralia. |
Rob Scaralia2008 REALTOR® View 2007 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. |
