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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

 

REALTORS Release 2nd Quarter Statistics

Warwick, RI…July 28, 2009 - Second quarter sales statistics showed existing single family home sales up 6.1 percent from second quarter 2008 according to data released today by the Rhode Island Association of Realtors (RIAR). Urban areas, which are the areas most affected by distressed sales (foreclosures and short sales) saw the biggest increases in sales volume.  The increase in sales has led to a six-month supply of homes on the market, which is considered to be a balanced market between supply and demand.  RIAR credits the $8000 tax credit to eligible buyers for increasing sales and helping to reduce the percentage of foreclosures and short sales in recent months.

Though the single family median price has increased in recent months, it declined 23 percent year-to-year, from $250,000 during the second quarter of 2008 to $192,500 this year. Thirty-seven percent of the second quarter sales were sold through foreclosure or short sale. The median price of single family homes that sold under “normal” (non-distressed) conditions was $236,500. Overall, single family home sales in Rhode Island have risen every month for the past six months and median price has risen for the past four months.

“Prices are all over the map, in large part due to the number of foreclosures and short sales in a given area. It’s extremely important to understand your local market and to remember that median price reflects the mix (type and size) of properties on the market at the time, not a change in value over same properties over time,” commented Paul Leys, President of the Rhode Island Association of Realtors.

Multi-family sales continued to show strong gains in volume, up 58 percent from the second quarter, 2008.  Median price however, was roughly half of the 2008 level, down to $77,000 in 2009 from $150,000 in 2008. The majority (84 percent) of sales were distressed. The median-price of non-distressed multi-family sales was $180,000. The low prices are helping to spur multi-family sales among first-time buyers and investors.

The condominium market continues to struggle with only 303 sales from April through June of this year, compared to 397 during the same time period last year. Median price fell from $220,000 in 2008 to $179,000 this year though the median price of sales that occurred through normal processes (not short sale or foreclosure) was $202,500. Just over 26 percent of all condo sales fell into the distressed category.

“For the most part, sales are up, the glut of inventory has decreased, and prices have been on an upward trajectory in recent months.  Despite national reports that cite declining prices, Rhode Island home prices are rising. It appears that we’re rebounding ,” said Leys.

Lawrence Yun, Chief Economist of the National Association of Realtors, projects 2009 to be the turning point in the real estate market with prices beginning to rise nationally in 2010. He predicts that the months’ supply of properties for sale will likely hit eight months nationally by year end.

“With a six-month supply of homes, Rhode Island seems to be ahead of the national curve,” commented Leys. He added that conditions are favorable for buyers who are taking advantage of interest rates in the fives but warned that time to use the $8000 tax credit is running out. The credit expires on November 30th.

Paul Leys

2009 REALTOR®
State President

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View 2009 2nd Quarter
Single Family Sales

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View Single Family Six Month Comparison (Jan - June)

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View 2009 2nd Quarter
Condominium Sales

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View Condominium Six Month Comparison (Jan - June)

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View 2009 2nd Quarter
Multi-family Sales

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View Mulit-Family Six Month Comparison (Jan - June)

 

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.