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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
Email: kerry@rirealtors.org

 

3rd Quarter Real Estate Sales Data Shows Median Price Up, Sales Down

Warwick, RI, October 29, 2010….Though single family home sales have risen month to month since July, total third quarter sales of Rhode Island single family homes fell 30 percent from a year earlier.  Distressed sales – those involving foreclosure or short sale - dropped 46 percent.  Of the 1653 single family home sales in the third quarter, 374 sold through foreclosure or short sale, compared to 693 distressed sales in the third quarter of 2009. From July through September, 23 percent of all single family homes sold under financial duress, down from 30 percent during third quarter of the year prior.  The median price of single family homes rose five percent to $219,500, likely resulting from fewer foreclosures.

Consumer uncertainty - fueled by lingering economic woes, news of possible fraudulent activity in the foreclosure market, and potential changes resulting from the November elections - appears to have slowed the market recovery that began in Rhode Island last year.  Single family home sales and median price had been rising through the second quarter of 2010, but third quarter sales data showed a sharp trend reversal in the number of properties sold.  Median price however, has continued to show healthy gains, because the rate of lower priced foreclosures and short sales declined.

The number of sales fell most significantly in areas like Warwick and Providence that had some of the state’s highest rates of foreclosures last year which had sparked heightened sales activity.   Voluntary foreclosure moratoria imposed by various banks may further depress distressed sales throughout the fall, though the impact in Rhode Island is expected to be slight.  Only a small number of Bank of America customers are expected to be affected.

 “Summer is typically slow in real estate and this year sales dropped even more than usual after the incentive of the tax credit passed.  The market is slowly regaining its footing with sales increasing from July to September but I don’t think we’ll see substantial gains until after the elections are over,” commented Karl Martone, President of the Rhode Island Association of Realtors.  Martone further commented that slowing sales have resulted in a higher inventory of properties for sale which may possibly result in decreased prices in the coming months.  Change in price was varied throughout the state. Median price reflects the midpoint of sales, with half of the properties selling below the median and half selling for more. It does not represent an increase or decrease in the same property over time.

Condominium sales also decreased, down 17 percent from the previous year.  Two hundred and ninety-five condos sold between July and September of this year compared to 356 during the same time period last year. Foreclosures and short sales fell from 84 last year to 56 this year, a 33 percent decline.  Nineteen percent of all condo sales during the third quarter sold through foreclosure compared to 24 percent in the third quarter of 2009.  Median price rose significantly, up 19 percent to $215,000, from $180,000 in the third quarter of 2009, perhaps due to declining distressed sales.

Multi-family unit sales declined the most of all three categories, down 39 percent from the year prior.  The number of foreclosures and short sales decreased from 393 in third quarter, 2009 to 191 this year. Fifty-seven percent of all multi-family sales were distressed sales.  Last year, distressed sales accounted for 71 percent of all third quarter multi-family sales.  Multi-family properties showed the largest gain in median price, up 29 percent to $127,500 due to the significant decrease in short sales and foreclosures.

“We’re still heading in the right direction as far as reducing our inventory of distressed properties and we don’t expect that to change.   September’s consumer confidence index improved slightly so we’re hopeful that the market will gain momentum in the next few months.  No matter how you slice it, housing affordability has never been better in the Ocean State,” said Martone.  He added that interest rates are at all time lows and prices remain around the levels seen in 2003.

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.

 

Karl Martone

2010 REALTOR®
State President

3rd Quarter 2010
Single Family Monthly
Sales Comparison

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3rd Quarter 2010
Multi Family Monthly
Sales Comparison

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3rd Quarter 2010
Condo Monthly
Sales Comparison

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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.