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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

 

3rd Quarter Real Estate Sales Data Shows Strong Recovery Momentum

Warwick, RI, October 29, 2009….Third quarter real estate sales statistics showed existing single family home sales up 21.1 percent from third quarter 2008 according to data released today by the Rhode Island Association of Realtors (RIAR).  Distressed properties, those sold through foreclosure or short sale, accounted for 29.7 percent of total sales.  The distressed market had accounted for as much as 45 percent of all sales during the first quarter of this year and by 37 percent in the second quarter.  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, as well as lenders’ increasing abilities to process distressed sales. Inventory has decreased in recent months.  As of September, the latest information available, there was a 6.8 supply of single family homes for sale.  Experts recognize a healthy market as a six-month supply of properties for sale, which represents a balance of supply and demand among sellers and buyers.

The median price of a single family home fell 8.7 percent to $210,000 from $230,000 in the third quarter of 2008. The percentage of price decline has decreased throughout the year.  Prices had dropped 26 percent in the first quarter and 23 percent during the second quarter.  The median price of single family homes that sold under “normal” (non-distressed) conditions was $238,500.  The median price reflects the mid-point of all sales where half sold for more and half sold for less. Realtor data reflects median price rather than average price because one or two high end sales can skew the statistics significantly.

 Multi-family sales increased 24 percent from July through September 2009 from the year prior.  The quarter ended with a six-month supply of multi-family properties on the market. The third quarter median of $99,000 was down from last year’s $135,000, a 26.7 percent drop.  Despite the drop, the Realtor data indicates that prices in the multi-family market are returning to normal levels. Median price had been down by approximately 50 percent in the first and second quarters of this year.  Distressed sales continued to make up the majority of activity, accounting for 70.7 percent of all sales.  Those properties that did not sell through foreclosure or short sale saw a median price of $177,000.

Condominium sales were up 4.2 percent with median price falling from $219,950 in the third quarter of 2008 to $180,000 this year. Nearly a quarter (23.9) percent of all sales were distressed sales.  In the first quarter, 30 percent of all condo sales were distressed sales and in the second quarter, just over 26 percent of sales were sold through short sale or foreclosure.  The median price of sales that occurred through conventional means was $205,000. 

“Increasing prices from the beginning of the year and a decreasing percentage of distressed sales show slow but steady recovery in the condo sector, “said Leys.  “The trends in all categories have continued to move in the right direction,” said Paul Leys, President of the Rhode Island Association of Realtors. “We’re seeing more sales, fewer foreclosures and stabilizing prices. It’s a big change from a year ago.”

 

Paul Leys

2009 REALTOR®
State President

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View 2009 3rd Quarter
Single Family Sales

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View 2009 3rd Quarter
Multi-Family Sales

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View 2009 3rd Quarter
Condominium Sales

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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.