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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
Cell: 401-207-4502
Email: kerry@rirealtors.org

 

REALTOR DATA SHOWS IMPROVING RI HOUSING MARKET

August 28, 2009, Warwick,RI….Statistics released today by the Rhode Island Association of Realtors show several indications of an improving housing market.  Existing single family home sales rose 8.8 percent from July 2008 to July 2009.  Median price decreased 14.3 percent to $210,000 during the same time period but held steady from the month prior. Prices have gone up or remained the same since March of this year.  July’s median price of $210,000 was 20 percent higher than the 2009 low point of $175,000. The July sales that did not involve short sales or foreclosure saw a higher median sales price of $239,500.

 The percentage of distressed sales in the single family market fell to just over 30 percent . The volume of distressed sales – homes sold through foreclosure or short sale - has decreased steadily each month since March when they accounted for more than 44 percent of total sales.

“We’re thrilled to see consistent indications of recovery.  We continue to have two markets out there, distressed and non-distressed, but the number of sales forced by an inability to make the mortgage payment is decreasing” commented Paul Leys, President of the Rhode Island Association of Realtors. “Supply and demand for single family homes has come into balance. Decreased inventory, diminishing distressed sales and what appears to be restored consumer confidence have led to what is now just over a 6-month supply of homes on the market.”  Leys explained that a 6-month supply of homes for sale has historically been a market balanced between buyer and seller demand and therefore considered a healthy market. 

The multi-family market followed suit with the number of sales growing 42.6 percent from July, 2008 to last month.  Median price rose to $100,000 from a 2009 low of $69,900 but remains below the July 2008 median price of $140,000. Home values in the multi-family market have been significantly affected by a large percentage of distressed sales, which accounted for 71 percent of all multi-family sales in July.  There is a 4.6-month supply of multi-family properties for sale, which is considered a seller’s market as it is below the six month supply marker which indicates balance between demand and supply.

“Investors and first-time buyers have been flooding the multi-family market to take advantage of great values and the $8000 tax credit to eligible buyers which expires this fall,” commented Leys.  Leys advised consumers that sales negotiations need to be in place no later than Halloween in order to close by November 30th, the expiration date of the $8000 credit.

Condo sales seem to be the last holdout in the housing correction with sales increasing 6.2 percent since July 2008 but prices falling both year-to-year and month-to-month. The July 2009 median sales price of condominiums was $170,000 compared to $195,000 the month prior and $225,000 a year prior.  Condos, generally in the lower price ranges, were once an extremely attractive option for first-time homebuyers. In the wake of decreasing sales prices however, single family homes and multi-family homes are now being seen as competitive, if not more affordable options on a monthly basis. There is currently a 12-month supply of condos for sale indicating a strong buyer’s market.  Statistics indicate that the Rhode Island condo market was the last to be affected by the housing correction and indicators point to it being the last category to move through it.

Housing statistics, including town-by-town and sales data by zip code, can be viewed on RILIVING.com, the official web site of the Rhode Island Association of Realtors.

 

Paul Leys

2009 REALTOR®
State President

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Single Family Sales
By Town

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 7,000 members in approximately 900 offices, has been serving Rhode Islanders since 1948. Collectively, RI REALTORS┬« transacted nearly $7.9 billion in residential real estate sales last year and nearly $8.1 billion in total transactions including rentals and commercial real estate. 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.

The Association is one of more than 1,400 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 1.4 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.