RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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October Home Prices Up, Sales DownWarwick, RI, November 30, 2010…Home sales statistics released today by the Rhode Island Association of Realtors (RIAR) show that the median price of single family homes rose four percent from September to October and was up 10 percent from October 2009. October's median price was $220,500, up from $200,000 in October 2009. Median price does not reflect the value of the same home over time but rather, reflects the mid point of all sales with half selling for more and half selling for less. The number of single family distressed sales – foreclosures and short sales - fell 49 percent from a year ago, from 227 sales in October 2009 to 117 last month. Rhode Island felt the effects of sub prime lending early on which was exacerbated by the state's high unemployment rate. In recent months, as problems initiated by the subprime situation diminished and the unemployment rate decreased, lower priced distressed sales became less prevalent. This in turn, caused median price to rise. Rates on jumbo mortgages have also fallen, helping to spur higher priced sales. October marks the twelfth consecutive month of increases in median price. The number of single family home sales fell 11 percent in Rhode Island from September to October and 35 percent from October of the previous year. "A year ago, the initial deadline for the home buyer tax credit was looming, causing sales to surge. We're not up against a deadline to take advantage of a major tax benefit this year so we're measuring current sales against unusually high sales last year. That makes the slowdown appear that much more severe," commented Stephen Antoni, President of the Rhode Island Association of Realtors. Condo and multi-family sales followed a similar trend as was seen in the single family market with the median price up 8 percent and sales down 34 percent from October 2009 in the condo sector, and the median price up 32 percent and the number of sales down 43 percent among multi-family sales during the same time frame. The number of distressed sales fell in both categories, down 24 percent among condo sales and 60 percent among multi-family sales. The inventory of single family properties on the market rose 20 percent from the previous year, while the number of condos and multi-family units increased five and 18 percent, respectfully. Antoni warned that the rise in inventory experienced throughout the year could cause supply and demand issues. "Earlier in the year we had started to see a balance between supply and demand which signaled a healthy recovery. We're cautiously optimistic that excess inventory won't become problematic because it did drop from September to October. That's a trend that we want to see continue," he said. Antoni warned that an over supply of homes on the market could lead to depressed prices. Better affordability, a lower unemployment rate and enhanced access to Boston via the new MBTA train service out of Warwick bode well for the future of the Rhode Island housing market, but tightened credit and the uncertain economy are still issues for many consumers. Note: Information is provided by State-Wide Multiple Listing Service, Inc. Readers are cautioned that the median sales price --- with half the prices higher and half lower --- generally reflects the quality and the mix (type and size) of the properties being sold at the time and is not a true measure of home values.
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Stephen Antoni2011 REALTOR® October 2010 ------------------ October 2010 ------------------ October 2010 ------------------ October 2010
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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 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. |
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