RHODE ISLAND ASSOCIATION OF REALTORS®, INC.

"The Voice of Real Estate in Rhode Island"
Serving Rhode Islanders Since 1948
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Press Release

Contact: Kerry Park
Ph: 401-432-6948
Email: kerry@rirealtors.org

RI Association of REALTORS® Release August Sales Statistics

Warwick, RI – September 30, 2008…Despite seeing increases in pending sales from April through August, (sales under contract but not yet closed,) actual single family home sales were down 21.89 percent from 763 in August, 2007 to 596 in August, 2008.  The median price of single family homes also fell, to $235,000 from $279,900 for the same time period, according to August statistics released today by the Rhode Island Association of Realtors.  Twenty-seven percent of single family home sales were foreclosures or short sales. 

The sharp decline in sales coupled with continued increases in pending sales indicates that sales under contract are not closing.  “This is a sign that banks aren’t lending and that short sale deals aren’t going through efficiently,” explained Rob Scaralia, President of the Rhode Island Association of Realtors.  “Even people with great credit are having a much harder time to qualify for a loan and short sales are taking an extraordinarily long time to process.  The combination of both of these factors is definitely impacting the market,” he said.

Inventory decreased by 3.98 percent in August, from 6952 in August, 2007 to 6675 this year.  August pending sales increased 22.36 percent year to year. Both signify a healthy increase in buyer demand.  “We’ve seen more people in the market but getting deals through the financing process is another story.  We’re encouraged by the federal $700 billion bailout plan which should lead to more relaxed, yet responsible, lending standards,” said Scaralia.

Multi-family prices were down nearly 46.45 percent from $239,500 in August, 2007 to $128,250 in August of this year. The multi-family market has been the hardest hit segment of the market with 101 distressed sales – foreclosures or short sales -  compared to only 31 traditional sales in August.  Total sales of multi-family properties were up 37.5 percent year to year from 96 in August, 2007 to 132 in August, 2008.By comparison, the median condo price fell only 4.65 percent to $232,500 from $243,850.  The number of condo sales however, fell 26.7 percent from 176 in 2007 to 129 in August of this year.  Only 14 condo sales involved foreclosures or short sales compared with 115 traditional condo sales.

In a recent address to Realtor members, National Association of Realtors Chief Economist, Lawrence Yun stated, “ America is on sale. Long term prospects for anyone purchasing property today… on the downside, the risk is very minimal. On the upside, the sky is the limit.”  Yun was particularly bullish on the value of residential multi-family properties in today’s market.

Rob Scaralia

2008 REALTOR®
State President

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.