RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Eighth Consecutive Month of Sales Growth in Rhode Island Home Sales
Warwick, RI, March 20, 2012…Single family home sales were up from the prior year for the eighth consecutive month in February. Sales increased 28 percent last month, from 340 single family homes sold in February, 2011 to 434 this year, according to statistics released by the Rhode Island Association of Realtors (RIAR). A lower median price of $170,000, down from $205,000 last year, indicates that sales are increasing due to closings on distressed sales, which are typically in the lower priced sales bracket. Median price has not been this low since April, 2002 and is indicative of a market in which one in three sales has been sold through short sale or foreclosure. While RIAR, which reports sold properties, noted that the number of distressed sales increased 37 percent from a year ago, industry researcher, RealtyTrac, recently reported that foreclosure filings in Rhode Island were down 39 percent in February. These statistics, which show a decreasing number of properties entering foreclosure with an increasing number of such properties sold and therefore exiting foreclosure, could indicate that the inventory of distressed properties on the market is being depleted. Pending sales which refer to properties under contract, not closings, were also up by 27 percent. Pending sales are considered to be the most current indicator of the market. The number of single family homes on the market rose one percent from a year ago, the smallest increase in inventory since last March. The key to market stability is a reduction in the supply of homes for sale. The increased sales correlate to a release by the National Association of Realtors which noted that its Housing Affordability Index rose to a record high in January. The index is based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. This is the first time since record keeping began ( in 1970) that the national Housing Affordability Index has broken the two hundred mark. An index of 200 means that the typical family has roughly double the income needed to purchase a median-priced home. Condominium sales followed the same trends as single family homes with sales up 12 percent and median price down 26 percent to $125,000. The number of distressed sales among condominiums increased from 14 in February, 2011 to 22 last month. Multi-family sales were the only property type with increases in both sales and median price. Seventy-seven multi-family homes sold last month, up 20 percent from the same time last year. The median sales price of $104,000 was eight percent higher than a year ago. "Rents are rising so investors and first time buyers are taking advantage of fantastic affordability for home ownership. The low price point, low interest rates and indications of a good return on investment is enticing buyers to get off the fence," commented RIAR president, Jamie Moore. Pending sales rose nine percent among condos and multi-family homes, and the number of condos and multi-family properties for sale fell, down nine and 13 percent respectively. Diminishing inventory in the multi-family sector has led to rising prices and the condominium market appears poised to follow the same trend. "Many of the major trends are going in the right direction, or if they're not now, it appears that they soon will be. Extended periods of increased sales are typically followed by rising prices. It seems that we are definitely in a period of market correction and will move further along in the recovery as financially distressed homes are removed from the market," said Moore. 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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Jamie Moore2012 REALTOR® February 2012 ------------------ February 2012 ----------- February 2012 ------------------ |
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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