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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

 

RI Sees Strong Gains in Second Quarter Housing Market

Warwick, RI - July 30, 2013... Median single family home price rose to $209,900 in the second quarter, up 10 percent from April through June, 2012 and the highest second quarter median price since 2010, when sales and median price saw a boost thanks to the homeowners' tax credit then in effect.  Median price – the midpoint of all sales, with half selling for more and half selling for less – has been rising steadily all year.

"Finally, homeowners and sellers are getting some relief.  The supply of homes for sale has dropped, eliminating the excess of homes for sale, particularly those sold through foreclosure and short sale," commented Victoria Doran, President of the Rhode Island Association of Realtors.  "Sellers need to understand however, that the decrease in distressed sales is what is elevating the median price.  Homes sold through conventional means still need to be reasonably priced."

Sales activity has picked up as well.  Fifteen percent more single family homes were sold from April through June of this year than during the same time frame last year, helping to balance the market between buyer demand and seller supply.  Last week, the Association reported that June data reflected a shift from a buyers' to a sellers' market with the supply of homes for sales decreasing below the six-month mark – the typical indication of a balanced market.

The condominium market realized the most significant gains in the second quarter. Median sales price rose 19 percent to $202,750 and the number of sales increased 28 percent from the second quarter of 2012.

"Condo sales have been coming on strong," said Doran. "The supply of single family homes is a bit more constrained then the supply of condos for sale right now, so buyers may be turning to the condo market in their search for a home."

The bulk of the multi-family market, which was most affected by foreclosure and short sales, changed hands in prior years as investors snapped up distressed sales.  The multi-family median price rose five percent in the second quarter but sales rose a moderate two percent as the demand in the investor market stabilized.

Distressed sales fell in all three categories, comprising 20 percent of single family home sales from April through June, 18 percent of condo sales and 38 percent of multi-family sales.  Those numbers dropped from 27, 22 and 47 percent, respectively, in the second quarter of 2012.

A look at sales for the first half of the year shows that the market has been gaining strength since January  The median price of sales from January through June rose eight percent for existing single family homes, 25 percent for condo sales and two percent for multi-family properties sold. 

"The market seems to be getting stronger every day. I've heard some concern that rising interest rates may affect the recovery but home affordability is still as good as it's been in years.  Interest rates in the fours, or even fives, are still historically very low, so I think we have a good foothold in the recovery which isn't likely to be derailed any time soon," said Doran.

Victoria Doran

2013 REALTOR®
State President

2nd Quarter 2013
& 2012 Comparison
Single Family

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2nd Quarter 2013
& 2012 Comparison
Multi-Family

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2nd Quarter 2013
& 2012 Comparison
Condominium

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Six Month (Jan-June)
2013 Single Family
Sales Comparison

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Six Month (Jan-June)
2013 Multi-Family
Sales Comparison

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Six Month (Jan-June)
2013 Condominium
Sales Comparison

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.